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(continued) , 747, 748, 749, 11338, 11339, and 11353, Revenue and Taxation Code.
s 910. Place of Hearing: Time Allowed.
Note: Authority cited: Section 15606(c), Government Code. References: Sections 731, 732, 741, 742, 743, 744, 747, 748, 749, 11338, 11339, and 11353, Revenue and Taxation Code.
s 911. Hearing Procedure.
Note: Authority cited: Section 15606(c), Government Code. References: Sections 731, 732, 741, 742, 743, 744, 747, 748, 749, 11338, 11339, and 11353, Revenue and Taxation Code.
s 912. Examination of Petitioner.
Note: Authority cited: Section 15606(c), Government Code. References: Sections 731, 732, 741, 742, 743, 744, 747, 748, 749, 11338, 11339, and 11353, Revenue and Taxation Code.
s 913. Evidence.
Note: Authority cited: Section 15606(c), Government Code. References: Sections 731, 732, 741, 742, 743, 744, 747, 748, 749, 11338, 11339, and 11353, Revenue and Taxation Code.
s 914. Burden of Proof.
Note: Authority cited: Section 15606(c), Government Code. References: Sections 731, 732, 741, 742, 743, 744, 747, 748, 749, 11338, 11339, and 11353, Revenue and Taxation Code.
s 915. Decision.
Note: Authority cited: Section 15606(c), Government Code. References: Sections 731, 732, 741, 742, 743, 744, 747, 748, 749, 11338, 11339, and 11353, Revenue and Taxation Code.
s 916. Reconsideration and Rehearing.
Note: Authority cited: Section 15606(c), Government Code. References: Sections 731, 732, 741, 742, 743, 744, 747, 748, 749, 11338, 11339, and 11353, Revenue and Taxation Code.
<<(Chapter Originally Printed 12-4-48)>>
s 1001. Annual Report.
The report required by Section 11271 of the Revenue and Taxation Code of all persons whose private railroad cars are operated upon the railroads in this State at any time during a calendar year shall be filed on or before the thirtieth day of April of the following year.
General Materials (GM) - References, Annotations, or Tables
Note: Authority cited: Section 15606(a), Government Code. Reference: Section 11271, Revenue and Taxation Code.
s 1002. Petitions for Reassessment, Private Railroad Cars.
General Materials (GM) - References, Annotations, or Tables
Note: Authority cited: Section 15606(c), Government Code. Reference: Sections 11338, 11339, 11340 and 11353, Revenue and Taxation Code.
s 1003. Missing Private Railroad Car Count Data.
In determining the private railroad car count averages required by statute the Board may substitute for missing border crossing information the average length of stay in the state experienced by private railroad cars of the same class and assessee during the calendar year immediately preceding the year in which the tax is imposed. Border crossing information shall be deemed missing only when it cannot be submitted by the assessee.
General Materials (GM) - References, Annotations, or Tables
Note: Authority cited: Section 15606(a), Government Code. Reference: Section 11293, Revenue & Taxation Code.
s 1020. Timber Value Areas.
The following nine designated areas contain timber having similar growing, harvesting and marketing conditions and shall be used as timber value areas in the preparation and application of immediate harvest values:
Area 1
Del Norte County
Humboldt County
Trinity County south and west of that part of the exterior boundary of the Shasta-Trinity National Forest between Humboldt and Tehama Counties
Area 2
Alameda County
Contra Costa County
Marin County
Mendocino County
Monterey County
San Francisco County
San Mateo County
Santa Clara County
Santa Cruz County
Sonoma County
Area 3
Siskiyou County west of Interstate Highway No. 5
Area 4
Shasta County west of Interstate Highway No. 5
Trinity County except that portion which is south and west of that part of the exterior boundary of the Shasta-Trinity National Forest between Humboldt and Tehama Counties
Area 5
Colusa County
Glenn County
Lake County
Napa County
Sacramento County
Solano County
Tehama County west of Interstate Highway No. 5
Yolo County
Area 6
Lassen County
Modoc County
Shasta County east of State Highway No. 89
Siskiyou County east of Interstate Highway No. 5
Area 7
Butte County
Nevada County
Placer County
Plumas County
Shasta County between Interstate Highway No. 5 and State Highway No. 89
Sierra County
Sutter County
Tehama County east of Interstate Highway No. 5
Yuba County
Area 8
Amador County
Calaveras County
El Dorado County
Tuolumne County
Area 9
Alpine County
Fresno County
Imperial County
Inyo County
Kern County
Kings County
Los Angeles County
Madera County
Mariposa County
Merced County
Mono County
Orange County
Riverside County
San Benito County
San Bernardino County
San Diego County
San Joaquin County
San Luis Obispo County
Santa Barbara County
Stanislaus County
Tulare County
Ventura County
Note: Authority cited for Article 1: Section 15606, Government Code. Reference for Article 1: Chapters 1 and 3, Part 18.5, Division 2, Revenue and Taxation Code.
s 1021. Timberland Grading Rule.
(a) General. Beginning with the 1977-78 fiscal year, privately owned land and land acquired for state forest purposes which is primarily devoted to and used for growing and harvesting timber and is zoned for a minimum 10-year period as timberland production zone (TPZ) will be valued for property taxation on the basis of its use for growing and harvesting timber, plus the value, if any, attributable to existing, compatible, nonexclusive uses of the land.
(b) Site Quality. Timberland is rated for productivity based upon its ability to produce wood growth on trees. Five general site classes are established wherein Site I denotes areas of highest productivity, Site II and Site III denote areas of intermediate productivity, and Site IV and Site V denote areas of lowest productivity. The five site quality classes are set forth within each of three general forest types: redwood, Douglas fir, and mixed conifers.
Land zoned as timberland production zone (TPZ) shall be graded by the assessor using the following site classification table as a measure of land productivity.
TIMBERLAND PRODUCTION ZONE SITE CLASSIFICATION TABLE
------------------------------------------------------------------------
------------------------------------------------------------------------
Ponderosa Pine
Productivity Young-Growth Jeffrey Pine, Mixed
Potential Redwood [FN1] Douglas Fir Conifer & True Fir [FN3]
[FN2]
------------------------------------------------------------------------
Site Site Site Site Site Site Site
Class Index Class Index Class Index Index
Feet @ Feet @ Feet @ Feet @
100 yrs. 100 100 yrs. 100 yrs. 100
yrs. yrs.
-----------------------------------------------------------
180 or 194 or 114 or 163 or
Highest I more I more I more more
------------------------------------------------------------------------
II 155-179 II 164-193 II 93-113 138-162
Intermediate ___________________________________________________________
III 130-154 III 134-163 III 75-92 113-137
------------------------------------------------------------------------
IV 105-129 IV 103-133 IV 60-74 88-112
-----------------------------------------------------------
Lowest ___________________________________________________________
Less Less Less Less
Than Than Than Than
V 105 V 103 V 60 88
------------------------------------------------------------------------
[FN1] Lindquist, Ja,es L., and Marshall N. Palley. Empirical yield tables for young-growth redwood, Calif. Agr. Exp. Stn. Bull 796, 47 pp., 1963.
[FN2] McArdie, Richard., and Walter H. Meyer. The yield of Douglas fir in the Pacific Northwest, USDA Tech. Bull. 201, 74 pp., Rev. 1961. Adjusted to average height of dominant trees after Forest Research Note No. 44, Pacific Northwest Forest and Range Experiment Station, by Forest Survey, Calif. Forest and Range Exp. Stn., 1948.
[FN3] Dunning, Duncan. A site classification for the mixed conifer selection forests of the Sierra Nevada. USDA Forest Serv. Calif. Forest and Range Exp. Stn. For. Res. Note 28, 21 pp., 1942.
YOUNG-GROWTH REDWOOD
Site index basedon average height of dominant trees at breast height age of 100 years. Use in young-growth redwood stands in which more than 20 percent of the stand by basal area is redwood and when sufficient dominant redwood trees are available to determine site index.
DOUGLAS FIR
Site index based on average height of dominant trees at age 100 years. Use in young-growth redwood stands in which 20 percent or less of the stand by basal area is redwood or when sufficient dominant redwood trees are not available to determine site index. Use also in old-growth redwood stands. In such cases, measure Douglas fir trees for determining site index. Also use for Sitka spruce, grand fir, hemlock, bishop's pine, and Monterey pine stands.
PONDEROSA PINE, JEFFREY PINE, MIXED CONIFER, AND TRUE FIR
Site index based on average height of dominant trees at age 100 and 300 years. Use also for lodgepole pine stands. For old-growth stands, use height of dominants at age 300 years.
(c) Operability. Timberland shall be rated for operability based upon such factors as accessibility, topography, and legislative or administrative restraints. On or before December 31, 1979, two classes of operability shall be used by the assessor and designated as operable or inoperable. Areas of inoperable land must be identified by the assessor. For the purpose of land site classification, inoperable means that any of the following circumstances are applicable:
(1) Extreme physical barriers prevent access.
(2) Legal or administrative restraints prevent access or harvest.
(3) Rocky ground, steep slopes, or sterile soil prevent growing or harvesting merchantable timber.
Note: Authority cited: Section 15606, Government Code; Section 38701, Revenue and Taxation Code. Reference: Sections 434.1 and 38204, Revenue and Taxation Code.
s 1022. Standard Unit of Measure.
(a) General. In determining quantities of timber for purposes of the timber yield tax the Scribner Decimal C Log Rule based on a maximum scaling length of 20 (Scribner Decimal C (short log) Scale) feet shall be used as the standard board foot log rule for timber that is measurable by the net board foot method. This standard board foot log rule for such timber is to be used in all instances, except that in those rare instances when circumstances preclude the use of this standard board foot log rule for such timber, conversion factors as specified herein shall be employed for reporting harvested timber originally scaled using other than the standard board foot log rule.
Timber that is not normally scaled by the net board foot method shall be measured using the unit commonly employed by those dealing the wood products to which the timber is to be converted, e.g.
Intended wood product Measurement Unit
Fuel Wood................. Cord
Christmas trees, poles.... Lineal foot
and pilings
Chip wood................. Gross scale of
usable wood
(b) Definitions. When used in this section the terms board foot and board foot log rule shall have the following meaning:
(1) Board foot-a solid piece of wood, 12 inches wide, 12 inches long and 1 inch thick.
(2) Board foot log rule-a method for estimating the volume in board feet of a log with a known diameter and length.
(c) Conversion Factors. When board foot volumes are not scaled using the standard board foot log rule the following factors shall be used to convert the scale employed to the standard scale.
(1) The Humboldt Log Scale shall be converted to gross Scribner Decimal C (Short Log) Scale by the application of a multiplier factor of 1.45. The actual defect in board feet as determined by the difference between that scale and the mill tally records shall be deducted from the gross Scribner scale. Until January 1, 1978, the Humboldt Log Scale when applied to old growth redwood shall be converted to net Scribner Decimal C (Short Log) Scale by the application of a multiplier factor of 1.15.
(2) The Spaulding Log Scale (Short Log) shall be converted to Scribner Decimal C (Short Log) Scale by the application of a multiplier factor of 1.02.
(3) When logs harvested in California are scaled outside California, and only when circumstances preclude the use of the Scribner Decimal C Log Rule based on a maximum scaling length of 20 feet (Scribner Decimal C (Short Log) Scale), the Scribner Decimal C Log Rule volumes attributable to long log scaling shall be converted to Scribner Decimal C (Short Log) Scale by the application of a multiplier factor of 1.20.
Note: Authority cited: Section 15606, Government Code; Sections 38109, 38204, and 38701, Revenue and Taxation Code. Reference: Sections 38109 and 38204, Revenue and Taxation Code.
s 1023. Immediate Harvest Value.
(a) Definitions. Immediate harvest value is the amount that each species or subclassification of timber would sell for on the stump at a voluntary sale made in the ordinary course of business for purposes of immediate harvest. Such value shall be expressed to the nearest dollar per standard unit of measure applicable pursuant to Rule No. 1022, except that the immediate harvest value of Christmas trees shall be the sale price of such trees in quantities of 100 or more in the market area nearest to the place where the trees are cut and adjusted to reflect the value of the trees immediately prior to severance.
Timber value areas are those areas containing timber having similar growing, harvesting, and marketing conditions.
Harvest value is the immediate harvest value in a timber value area as of the first day of the period specified by the applicable harvest value schedule.
"Timber at similar locations" means timber in an area of comparable elevation and topography, and subject to comparable logging conditions and accessibility to the point of conversion.
(b) Harvest Value Schedules. The timber owner shall determine the taxable value of the timber harvested for each harvest operation by the use of the Board harvest value schedule applicable to the tax reporting period.
The harvest value schedules adopted by the Board provide estimates of harvest values by considering gross proceeds from sales on the stump of similar timber of like quality and character at similar locations, or gross proceeds from sales of logs, or of finished products, adjusted to reflect only the portion of such proceeds attributable to value on the stump immediately prior to harvest, or a combination of both. Allowance is made for differences in age, size, quality, cost of removal, accessibility to point of conversion, market conditions, and other relevant factors.
Each value schedule provides harvest values for a timber value area taking into account species and average tree or log size. Appropriate allowances for costs of removal have been calculated by consideration of the most common logging systems used within the area, the actual methods of harvesting the timber, the volume per acre, the total volume removed per harvest operation, the typical haul range distances to a conversion point and any excessive required costs of removal.
(c) Damaged Timber. The Board, either on its own motion after consultation with the Timber Advisory Committee or in response to an application from a timber owner may specify a modification of immediate harvest value to reflect material changes in timber values that result from fire, blowdown, ice storm, flood, disease, insect damage, or other cause, for any area in which damaged timber is located. Whenever a timber owner uses such modified immediate harvest values for reporting damaged timber, he shall maintain appropriate accounting records as specified by the Board.
Note: Authority cited: Section 15606, Government Code. Reference: Sections 434.1, 38701, and 38204, Revenue and Taxation Code.
s 1024. Exempt Timber.
(a) General. There is exempt from timber yield tax timber whose immediate harvest value is so low that, if not exempt, the tax on the timber would amount to less than the cost of administering and collecting the tax.
(b) Exempt Harvest. Timber, removed from a timber harvest operation whose immediate harvest value does not exceed $3,000 within a quarter, is exempt from timber yield tax pursuant to the authority granted by section 38116 of the Revenue and Taxation Code. For the purpose of this rule, immediate harvest value shall be that value described in sections 38109 and 38204 of the Revenue and Taxation Code, and in Rule 1023. The Board harvest value schedule applicable to the tax reporting period at the time of harvest shall define the timber harvest operation, and shall be the basis for determining the immediate harvest value thereof.
(c) Nothing in this rule shall authorize the exemption of timber whose immediate harvest value exceeds $3,000.
Note: Authority cited: Section 15606(c), Government Code. Reference: Section 38116, Revenue and Taxation Code.
s 1025. Value of Timberland.
Note: Authority cited: Section 15606, Government Code. Reference: Sections 434 and 434.5, Revenue and Taxation Code.
s 1026. Timber Owner.
Exempt person or agency. The timber yield tax is imposed not only on every timber owner who harvests his or her timber or causes it to be harvested but also on every timber owner of felled or downed timber who acquires title to such felled or downed timber in the state from a person or agency exempt from property taxation under the Constitution or laws of the United States or under the Constitution or laws of the State of California. In some instances, such timber owners may acquire title to felled or downed timber directly from the exempt person or agency. In other instances, however, such timber owners may acquire title to felled or downed timber from an exempt person or agency which itself has previously acquired title to the timber from another exempt person or agency.
Where timber owners of felled or downed timber have acquired title to the timber in the state from an exempt person or agency, "first person who acquires either the legal title or beneficial title to timber after it has been felled" means the first non-exempt person who acquires such title from an exempt person or agency, and such a person is a timber owner liable for applicable timber yield tax (e.g., where the person initially felling timber is exempt from property taxation and the person acquiring the felled timber is also exempt from property taxation, the first non-exempt person who thereafter acquires title to the felled timber is liable for applicable timber yield tax).
As used in Sections 38104 and 38115 of the Revenue and Taxation Code, "timber owner" does not include, however, any person who harvests timber, causes it to be harvested, or acquires title to felled or downed timber derived from Indian lands held in trust by the United States for an Indian Tribe or Band or for any Individual Indian member thereof; and no timber yield tax shall be imposed with respect to that timber upon any person who thereafter acquires title to the timber.
Note: Authority cited: Section 15606, Government Code; and Section 38701, Revenue and Taxation Code. Reference: Sections 38104, 38106 and 38115, Revenue and Taxation Code; Hoopa Valley Tribe v. Nevins, et al. (1989) 881 F.2d 657.
s 1027. U. S. Forest Service Timber Volumes.
(a) General. U. S. Forest Service timber sale contract holders shall report timber volumes harvested as hereinafter provided.
(b) Scaled Volume Billings. The Timber Sale Statement of Account (TSSA) is the basis for most U. S. Forest Service billing statements. Timber volumes shall be reported for the quarters reflected by the Timber Sale Statements of Account (e.g., April, May, and June, 1980 TSSA volumes shall be reported for the second quarter of 1980).
(c) Lump-Sum Billings. Timber volumes actually harvested, regardless of the volume purchased from, and billed for by the U. S. Forest Service, shall be reported for the quarters in which scaled. Timber sale contract holders must get and retain scaling data for such volumes.
(d) Other Methods of Reporting. Timber harvested pursuant to U. S. Forest Service timber sale contracts may be reported on a basis other than (b) or (c), above, only if a written description of the reporting basis to be used is submitted to and is authorized by the Timber Tax Division prior to the due date of the return and prior to reporting.
Note: Authority cited: Section 15606, Government Code; Sections 38108 and 38701, Revenue and Taxation Code. Reference: Sections 38108 and 38115, Revenue and Taxation Code.
s 1031. Records.
(a) General. Every timber owner, timberland owner, timber operator, and person harvesting timber for forest products purposes, shall keep adequate and complete records showing:
(1) Contractual or financial agreements relative to the ownership and harvest of timber for forest products.
(2) Harvest locations for logged timber.
(3) The basis for adjustments to harvest values.
These records shall include the books of account ordinarily maintained by the average prudent businessman engaged in the activity, together with all bills, receipts, invoices, scaling records, tapes, or other documents of original entry supporting the entries in the books of account as well as all schedules or working papers used in connection with the preparation of tax returns.
(b) Microfilm Records. Microfilm reproductions of general books of account, such as cash books, journals, voucher registers, ledgers, etc., are acceptable in lieu of original records, and microfilm reproductions of supporting data such as sales invoices, purchase invoices, credit memoranda, scale tickets, trip tickets, etc., are acceptable providing the following conditions are met:
(1) Appropriate facilities are provided for the preservation of the films for periods required under subparagraph (d).
(2) Microfilm rolls are indexed, cross-referenced, labeled to show beginning and ending numbers or beginning and ending alphabetical listing of documents included, and are systematically filed.
(3) The taxpayer agrees to provide transcriptions of any information contained on microfilm which may be required for purposes of verification of tax liability.
(4) Proper facilities are provided for the ready inspection and location of the particular records, including modern projectors for viewing and copying the records.
A posting reference must be on each invoice. Credit memoranda must carry a reference to the document evidencing the original transaction. Documents necessary to support a claimed adjustment for immediate harvest value, such as scaling tickets and trip records, must be maintained in an order by which they can be readily related to the harvesting for which the value adjustment is sought.
(c) Records Prepared by Automated Data Processing Systems. An ADP tax accounting system shall include a method of producing visible and legible records that will provide the necessary information for verification of the taxpayer's tax liability.
(1) Recorded or Reconstructible Data. ADP shall make possible the tracing of any transaction back to the original source or forward to a final total. If detail printouts are not made of transactions at the time they are processed, then the system must have the ability to reconstruct these transactions.
(2) General and Subsidiary Books of Account. A general ledger, with source references, shall be maintained to coincide with financial reports for tax reporting periods. Subsidiary ledgers used to support the general ledger accounts shall also be in printout form, or the system be capable of producing a printout for any appropriate calendar or fiscal period.
(3) Supporting Documents and Audit Trail. Records shall be kept in such a manner as to provide an audit trail that allows for ready identification of details underlying the summary accounting data. The system should be so designed that supporting documents, such as sales invoices, purchase invoices, scaling tickets, credit memoranda, etc., are readily available.
(4) Program Documentation. A description of the ADP portion of the accounting system shall be available. The statements and illustrations of the scope of operations should be sufficiently detailed to indicate, (a) the application being performed, (b) the procedures employed in each application (supported by flow charts, block diagrams or other satisfactory description of the input or output procedures), and (c) the controls used to insure accurate and reliable processing. Important changes, together with their effective dates, should be noted in order to preserve an accurate chronological record.
(d) Records Retention. All records pertaining to transactions subject to the timber yield tax must be preserved for a period of not less than four years unless the State Board of Equalization authorizes in writing their destruction within a lesser period.
(e) Examination of Records. All of the above-described records shall be made available for examination on request by the Board or its authorized representatives.
(f) Failure to Maintain Records. Failure to maintain and keep complete accurate records shall be considered evidence of negligence or intent to evade the tax and may result in penalties or other appropriate administrative action.
Note: Authority cited: Section 15606, Government Code. Reference: Sections 434.1, 38701, and 38204, Revenue and Taxation Code.
s 1042. Livestock Head-Day Tax: Administration.
Note: Authority cited for Subchapter12: Section 15606, Government Code. Reference for Subchapter 12: Part 11 (Sec. 5501 et seq.) and Part 12 (Sec. 5701 et seq.) of Division 1, Revenue and Taxation Code.
s 1045. Administration of the Annual Racehorse Tax.
(a) The annual tax imposed by section 5721 of the Revenue and Taxation Code on the privilege of breeding, training, caring for, or racing racehorses in this state shall be administered as provided herein.
(b) Submission of Forms for Board Approval.
(1) Annually, on or before October 15, the assessor shall notify the board, on a form provided by the board:
(i) of the assessor's intent to reproduce (a) the Annual Racehorse Tax Return form BOE-571-J (8-03) and (b) the Annual Report of Boarded Racehorses form BOE-571-J1 (8-03) by a photocopy process from the current prototype forms and instructions distributed by the board for use for the succeeding reporting period; or
(ii) of the forms and/or instructions which the assessor will produce by means other than a photocopy of the prototype for use for that period; or
(iii) that the assessor will have no need for the forms.
(2) When filing a notification that the assessor will use a form and/or instructions which the assessor will produce by means other than a photocopy of the prototype, the assessor shall submit to the board in duplicate for approval a draft copy of each form and/or instructions. The copies shall be submitted together with the board-prescribed property statement forms required to be submitted by Regulation 171 of this title. The provisions of Regulation 171 relative to arrangement and variation of content of such property statement forms shall also be applicable to these forms.
(c) Distribution of Forms and Retention of Reports.
(1) Copies of the forms prescribed by the board for reporting the tax due and for reporting the names of persons whose racehorses are boarded with others shall be furnished by the assessor no later than December 15 prior to the calendar year in which the tax is due by mailing them to persons believed to be required to use them and by making them available at the assessor's office to any person requesting them.
(2) The assessor shall maintain a record of those persons believed to be liable for the annual racehorse tax to whom the assessor has furnished copies of the forms. A copy of the record shall be delivered to the tax collector within 10 days of the date when copies of the forms are furnished so that the tax collector can be cognizant of the taxpayers who can reasonably be expected to file returns.
(3) The assessor shall retain a copy of all tax returns filed by taxpayers for a period of five years from the date the returns became due. They shall be arranged or identified so as to indicate whether or not an audit is required under subsection (d) of this regulation.
(d) Audits. (1) The assessor shall audit the tax records relative to his or her county of any racehorse owner who, according to the assessor's records, had a gross tax liability (before addition of any penalties) that exceeds $4,000 for each of four consecutive calendar years. This audit shall be performed within five years of the date on which the annual racehorse tax first became due and shall include, but not be limited to, a comparison of the annual racehorse tax return with records maintained by the taxpayer. The assessor, when performing an audit pursuant to this regulation of a taxpayer's records of racehorses taxable at a home ranch or other business location, may also audit records of the same taxpayer pertaining to personal property and fixtures on property having tax situs at the same location.
(2) When an assessor schedules an audit of the records of any racehorse owner, whether as part of an audit required by section 469 of the Revenue and Taxation Code or independently thereof, the assessor shall advise the assessor of any other county in which racehorses of the taxpayer were taxable, as shown in the Annual Racehorse Tax Return or in any other source, of the date on which the audit will be performed. Upon completion of the audit, the assessor shall make that portion of the audit findings relevant to the annual racehorse tax available to the assessor of any other county in which racehorses of the taxpayer were taxable.
(3) On discovery that horses escaped taxation, the assessor shall determine whether they were subject to the annual racehorse tax, were subject to the property tax, or were exempt. If determined taxable, the assessor shall either provide the tax collector with copies of the audit workpapers so that a determination of additional racehorse tax due can be calculated, or enroll an ad valorem assessment of escaped personal property.
(e) Nothing herein shall be construed to prohibit the assessor from auditing the records of taxpayers for which audits are not required by this regulation.
Note: Authority cited: Section 15606, Government Code; and Section 5781, Revenue and Taxation Code. Reference: Section 15606, Government Code; and Sections 469, 5701, 5721, 5765, 5768, 5781 and 5790, Revenue and Taxation Code.
s 1046. Horses Subject to Ad Valorem Taxation.
A horse over three years of age, or over four years of age in the case of an Arabian horse, that, in the two previous calendar years, has neither participated in a horserace contest on which parimutuel wagering is permitted nor been used for breeding purposes in order to produce a racehorse eligible to participate in a horse race contest on which parimutuel wagering is permitted is not a racehorse within the meaning of part 12 of division 1 of the Revenue and Taxation Code. Any such horse is subject to ad valorem taxation unless otherwise exempt.
(a) A horse used for breeding purposes means a registered male animal that has serviced three or more registered females for the purpose of producing a racehorse during the two previous calendar years or a registered female animal that has been bred to a registered male for the purpose of producing a racehorse during the two previous calendar years.
(b) In order to qualify as a racehorse a horse must be registered or eligible to be registered with an agency recognized by the California Horse Racing Board. Agencies currently recognized are as follows:
Agency Breed
The Jockey Club........................... Thoroughbred
The American Quarter Horse Association.... Quarter Horse
The United States Trotting Association.... Standardbred
The Appaloosa Horse Club.................. Appaloosa Horse
The Arabian Horse Registry of America..... Arabian Horse
Note: Authority cited: Section 15606, Government Code; and Section 5781, Revenue and Taxation Code. Reference: Sections 5703, 5710, 5711 and Part 12, Division 1, Revenue and Taxation Code; and Sections 19409, 19413.5, 19416, 19416.5 and 19416.7, Business and Professions Code.
s 1047. Proper Classification of Racehorses.
(a) If during the previous calendar year a racehorse subject to the tax imposed by section 5721 of the Revenue and Taxation Code falls into categories both as an animal used for breeding and as an active racehorse, the use producing the higher tax is controlling.
(b) If during the previous calendar year a stallion is used by the owner exclusively for purposes of servicing the owner's mares, the highest stud fee for such year shall be determined by reference to the highest stud fee charged by owners of comparable stallions on the open market.
s 1051. Extension of Time for Acts Required by Regulation.
When any regulation of the board fixes the time for the performance of any act by the assessor, board of equalization, assessment appeals board or other board, officer, or employee of a county or local governmental entity, the time may be extended by the board or its secretary in the same manner and for the same periods as provided by Section 155 of the Revenue and Taxation Code for extension of a time fixed by statute.
Note: Authority cited: Section 15606, Government Code. Reference: Section 155, Revenue and Taxation Code.