After I spent the day on May 7, 2020 preparing the 2020 property tax statement (Form 571-L) for my business, I learned that Governor Newsom issued an Executive Order on May 6, 2020 extending the date on which penalties can be assessed for late filing from May 7 to May 31, 2020.
Here is a URL for the Order. https://www.gov.ca.gov/wp-content/uploads/2020/05/5.6.20-EO-N-61-20-text.pdf
So, if you haven’t filed the statement yet for your business, you still have a few days to take care of it.
The county assessors weren’t happy with this decision because they will be scrambling to get the property tax bills out after the information is received.
The governor’s order also suspends penalties and interest for certain real estate taxes paid after April 10, 2020 for California residential real estate occupied by the taxpayer and California real estate owned and operated by a small business until May 6, 2021. The following requirements must be met to qualify for the waiver :
- The taxes owed on the property must not have been delinquent as of March 4, 2020;
- The taxpayer must timely file a claim for relief in a time and manner prescribed by the tax collector; and
- The taxpayer must demonstrate to the satisfaction of the tax collector that the taxpayer has suffered economic hardship, or was otherwise unable to pay the taxes on time due to the COVID-19 pandemic, or any local, state or federal response to COVID-19.
If the taxes owed on a property are being paid on an installment plan and the payments were made on time as of March 4, 2020, the balance of the taxes due under the installment plan will not be considered to be delinquent for this purpose.
Real estate taxes being paid using an impound account aren’t eligible for this relief.
If you have questions about this matter, consult with your tax advisor or call your county tax collector.