2005 California Revenue and Taxation Code Sections 5140-5149.5 Article 2. Refund Actions by Taxpayers

5140.  The person who paid the tax, his or her guardian or
conservator, the executor of his or her will, or the administrator of
his or her estate may bring an action only in the superior court
against a county or a city to recover a tax which the board of
supervisors of the county or the city council of the city has refused
to refund on a claim filed pursuant to Article 1 (commencing with
Section 5096) of this chapter.  No other person may bring such an
action; but if another should do so, judgment shall not be rendered
for the plaintiff.
5141.  (a) An action brought under this article, except an action
brought under Section 5148, shall be commenced within six months from
and after the date that the board of supervisors or city council
rejects a claim for refund in whole or in part.
   (b) Except as provided in subdivision (c), if the board of
supervisors or city council fails to mail notice of its action on a
claim for refund within six months after the claim is filed, the
claimant may, prior to mailing of notice by the board of supervisors
or city council of its action on the claim, consider the claim
rejected and bring an action under this article.
   (c) If an applicant for the reduction of an assessment states in
the application that the application is intended to constitute a
claim for refund pursuant to Section 5097, the claim for refund shall
be deemed denied on the date the final installment of the taxes
extended on such assessment becomes delinquent or on the date the
equalization board makes its final determination on the application,
whichever is later.
5142.  (a) No action shall be commenced or maintained under this
article, except under Section 5148, unless a claim for refund has
first been filed pursuant to Article 1 (commencing with Section
5096).
   No recovery shall be allowed in any refund action upon any ground
not specified in the refund claim.
   (b) When the person affected or his or her agent and the assessor
stipulate that an application involves only nonvaluation issues, they
may file a stipulation with the county board of equalization stating
that issues in dispute do not involve valuation questions.  To the
extent possible, the stipulation shall also indicate the parties'
agreement as to the assessment amounts that would result under their
respective positions on the issue or issues in dispute.  The board
shall accept or reject the stipulation, with or without conducting a
hearing on the stipulation.  The filing of, and the acceptance by the
board of, a stipulation shall be deemed compliance with the
requirement that the person affected file and prosecute an
application for reduction under Chapter 1 (commencing with Section
1601) of Part 3 in order to exhaust administrative remedies.
However, the filing of, and the acceptance by the board of, a
stipulation under this subdivision shall not excuse or waive the
requirement of a timely filing of a claim for refund.
   (c) Nothing in this subdivision shall be construed to deprive the
county board of equalization of jurisdiction over nonvaluation issues
in the absence of a contrary stipulation.
5143.  If a claim for refund relates only to the validity of a
portion of an assessment, an action may be brought under this article
only as to that portion.
5144.  If the court finds that an assessment is void in whole or in
part, it shall render judgment for the plaintiff for the amount of
the taxes paid on that portion of the assessment that is found to be
void.  The taxes paid on the portion of the assessment not found to
be void shall constitute valid taxes which, if paid after
delinquency, shall carry penalties, interest, and costs.
5145.  (a) Notwithstanding the fact that all taxes on property have
not been paid in full, the owner of that property may bring an action
under Section 5140 at any time within six months after the rejection
of a claim for the first installment under an installment plan of
redemption pursuant to Article 2 (commencing with Section 4216) of
Chapter 3 of Part 7, if the following requirements are satisfied:
   (1) The first installment payment is made within six months of the
delinquency of the taxes being paid by installments.
   (2) If the balance of the unpaid tax liability remaining after the
first installment payment has been made, plus penalties and interest
thereon to the date of filing the actions, exceeds 662/3 percent of
the full value of the property on which the taxes are a lien, as of
the last equalized assessment roll, the taxpayer shall post a bond
with the county tax collector in a sum equal to that excess or, in
the alternative, pledge other property with the county tax collector
in that amount as security. The requirement for a bond or additional
security specified in this paragraph shall terminate when the balance
of unpaid tax liability remaining after a subsequent installment
payment, plus penalties and interest thereon to the date of such
subsequent installment payment, no longer exceeds 662/3 percent of
the full value of the property on which the taxes are a lien, as of
the last equalized assessment roll.  However, a new bond shall be
posted or property pledged if, during the pendency of the action, the
balance of unpaid tax liability, plus penalties and interest
thereon, again exceeds 662/3 percent of the full value.
   (b) The right to maintain an action under this section shall
terminate if there is a default of any obligation by the owner in the
installment plan of redemption on the property.
   (c) If the owner does not recover the amount of taxes in dispute
in an action brought under this section, he or she shall pay
additional interest to the county or city equal to the difference
between the interest he or she has paid under Article 2 (commencing
with Section 4216) of Chapter 3 of Part 7 and the amount of interest
the county or city would have earned on the funds in the impound
account on the entire amount of tax determined by the court to be
due, if the amount had been paid in equal installments on the tax
delinquency dates.
5145.5.  (a) Notwithstanding the fact that all taxes on a property
have not been paid in full, the owner of that property may, subject
to the limitations set forth in subdivision (d), bring an action in
accordance with Section 5140 at any time within six months after the
rejection of a claim for the refund of the first installment that is
paid under an installment plan for payment of escape assessments that
is entered into pursuant to Section 4837.5.
   (b) The right to maintain an action pursuant to this section shall
terminate if there is a default on the part of the assessee with
respect to any obligation in the installment plan for payment of the
escape assessment.
   (c) If the owner does not recover the amount of taxes in dispute
in an action brought under this section, he or she shall pay
additional interest to the county or city in an amount equal to the
difference between the amount of interest he or she has paid under
Section 506 and the amount of interest that the county or city would
have earned in the impound account in connection with the entire
amount of tax determined by the court to be due if that amount had
been paid prior to delinquency.
   (d) (1) This section shall not apply in cases where the penalty
pursuant to Section 503 has been added to the escape assessment and
upheld by the appeals board or the county board of equalization.
   (2) This section shall apply to installment plans initiated by
written requests filed with the tax collector on or after July 1,
1997.
5146.  If all or any portion of the taxes sought to be recovered
were collected by officers of the county for a city or cities, an
action must be brought against the county for the  recovery of those
taxes.  When an action is filed against a county for taxes collected
by the county on behalf of a city or cities, the county shall give
notice of that action to the city or cities within 30 days of the
county's receipt of the summons and complaint.  A fee shall be
payable by the assessee in an amount prescribed by the court to cover
the reasonable costs incurred by a county or counties in giving the
required notice.  Any city receiving notice of the action filed
against the county may, within 30 days of the receipt of that notice,
intervene in that action.  Whether or not a city intervenes in the
action, any judgment rendered for an assessee shall be entered
exclusively against the county; however, the county shall be entitled
to recover separately from the city or cities and other tax entities
those taxes collected by the county on behalf of the city or cities
and other tax entities which are subject to refund to the assessee as
a result of the judgment.  Payment to the taxpayer upon the judgment
and any interest thereon may be deferred by the county until the
apportionment of property tax revenue next following the date of the
judgment, or as the county and the taxpayer may otherwise agree.
Interest shall accrue during any deferral period unless the county
and taxpayer otherwise agree.  The county may if it chooses to do so
offset the amount of the judgment and interest recoverable by it from
the city or cities and other tax entities against amounts held in
the county treasury therefor or against amounts due and payable
thereto, including, but not limited to, property tax apportionments.
The amount of the fee required by this section shall not be
recoverable by the assessee in the action and no judgment entered in
the action in favor of the assessee shall provide for the recovery of
the fee.
   As used in this section, "county" includes a city and county.
   If all or any portion of the taxes sought to be recovered were
levied on state-assessed property, property which the board has found
ineligible for the welfare exemption pursuant to Section 254.5, or
property as to which the board has reviewed the assessment pursuant
to Section 11 of Article XIII of the Constitution, the board shall be
joined as a party to the action.
5147.  (a) No refund action hereafter commenced shall be further
prosecuted, and no further proceedings shall be had therein, and any
refund action hereafter commenced shall be dismissed by the court in
which the action was commenced, on the court's own motion or on the
motion of any defendant therein, unless the summons was issued and
served and the return thereon was made within one year after the
commencement of the action, except where the parties have filed a
stipulation in writing that the time may be extended or the party
against whom the action is prosecuted has made a general appearance
in the action.
   (b) For purposes of this section, none of the following
constitutes a general  appearance in the action:
   (1) A stipulation pursuant to Section 583.230 of the Code of Civil
Procedure extending the time within which service must be made.
   (2) A motion to dismiss made pursuant to this chapter, whether
joined with a motion to quash service or a motion to set aside a
default judgment, or otherwise.
   (3) An extension of time to plead after a motion to dismiss made
pursuant to this chapter.
5148.  Notwithstanding Section 5140, an action to recover taxes
levied on state-assessed property arising out  of a dispute as to an
assessment made pursuant to Section 721, including a dispute as to
valuation, assessment ratio, or allocation of value for assessment
purposes, shall be brought under this section.  In any action brought
under this section, the following requirements shall apply:
   (a) The action shall be brought by the state assessee.  There
shall be a single complaint with all parties joined therein with
respect to disputes for any year.
   (b) The action shall name the board and the county or  counties.
When a county is named which collected taxes on behalf of a city or
cities, the county shall give notice of that action to the city or
cities within 30 days of receipt of advice from the board of the
action.  A fee shall be payable by the state assessee in an amount
prescribed by the court to cover the reasonable costs incurred by a
county or counties in giving that notice.  Any city receiving notice
of the action filed against the board and the county may, within 30
days of the receipt of that notice, intervene in that action.
Whether or not a city intervenes in the action, any judgment rendered
for an assessee shall be entered exclusively against the county;
however, the county shall be entitled to recover separately from the
city or cities and other tax entities those taxes collected by the
county on behalf of the city or cities and other tax entities which
are subject to refund to the assessee as the result of the judgment.
Payment to the taxpayer upon the judgment and any interest thereon
may be deferred by the county until the apportionment of property tax
revenue next following the date of the judgment, or as the county
and the taxpayer may otherwise agree.  Interest shall accrue during
any deferral period unless the county and taxpayer otherwise agree.
The county may if it chooses to do so offset the amount of the
judgment and interest recoverable by it from the city or cities and
other tax entities against amounts held in the county treasury
therefor or against amounts due and payable thereto, including, but
not limited to, property tax apportionments.  The amount of the fee
required by this section shall not be recoverable by the assessee in
the action and no judgment entered in the action in favor of the
assessee shall provide for the recovery of the fee.
   As used in this section, "county" includes a city and county.
   (c) Service of the summons and complaint shall be only upon the
board.  The board shall serve as agent of the defendant county or
counties for the purpose of service of process.  A fee shall be
payable by the state assessee in an amount prescribed by the court to
cover all reasonable costs incurred by the board while acting in its
capacity as agent for the defendant counties.
   (d) Venue of the action shall be in any county in which the
Attorney General of California has an office or in which the state
assessee has a significant presence.
   (e) The action shall be limited in the case of valuation and
allocation disputes to the grounds specified in the following:
   (1) A petition for reassessment filed under Section 741, or any
proceeding thereon.
   (2) A petition for correction of allocated assessment filed under
Section 747, or any proceeding thereon.
   (f) A timely filed petition for reassessment or petition for
correction of allocated assessment shall constitute a claim for
refund if the petitioner states in the petition it is intended to so
serve.
   (g) The action shall be commenced only after payment of the taxes
in issue and within four years after the latest of the dates that the
State Board of Equalization mailed its decision or its written
findings and conclusions on the following:
   (1) A petition for reassessment filed under Section 741 and
intended to constitute a claim for refund.
   (2) A petition for correction of allocated assessment filed under
Section 747 and intended to constitute a claim for refund.
   (h) The action shall not be joined with any action filed under
Section 5140.
   (i) Any refund of tax overpayments and any interest thereon,
determined in any action brought under this section to be due shall
be made by the defendant county or counties.
5149.  All courts wherein actions brought under this part (with the
exclusion of actions brought under Section 5148) are or hereafter may
be pending shall give those actions precedence over all other civil
actions therein, except actions to which special precedence is given
by law, in the matter of setting same for hearing or trial, and in
hearing the same, to the end that all those actions shall be quickly
heard and determined.
5149.5.  Where the taxes sought to be recovered have been paid after
delinquency, the amount of penalties, interest or costs recoverable
in actions brought under this article shall be computed only on the
taxes recovered.