July 8, 2020

Volume X, Number 190

July 07, 2020

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July 06, 2020

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Last Minute Relief for Filers of Business Property Statements

Once again, San Francisco has shown leadership in addressing property tax relief during the COVID-19 pandemic. On Monday, May 4, 2020, the San Francisco County Assessor announced that she was moving the deadline for businesses to file their Business Property Statements (Form 571-L) to June 1 of this year, due to physical office closure of the San Francisco Office of Assessor-Recorder.

Normally, under state law, a 10 percent penalty automatically attaches when a taxpayer’s business property statement is filed after May 7. But, if May 7 falls on a Saturday, Sunday or legal holiday, then a property statement that is mailed and postmarked on the next business day is deemed to have been timely filed. Under the applicable statue, legal holidays include days when the county’s offices are closed for the entire day.

As a practical matter, most, if not all, county assessor offices across the state are closed. Yet, most assessors have been reluctant to go on the record to acknowledge this reality, and to provide relief to the taxpayers struggling to meet the May 7 deadline while working remotely in compliance with state and local health mandates. We commend Assessor Carmen Chu for extending this deadline and providing clarity for Business Property Statement filers in San Francisco.

Business Property Statement filers located outside San Francisco are encouraged to contact their assessor’s offices to seek clarity on the local policy. Although the State Board of Equalization has empaneled a Task Force to look into this issue, no statewide guidance has been provided as of this writing. Nevertheless, a certain degree of “self-help” does exist under the current statutory scheme. Notwithstanding the formal May 7 deadline, every business required to file a Business Property Statement is allowed to amend that statement without penalty until May 31 for any errors and omissions not resulting from willful intent to erroneously report. Thus, businesses struggling due to the COVID-19 pandemic can file a quick return by May 7, and then a final amended return by May 31 with no penalty.

If you have questions about this year’s filing deadlines, please contact the authors listed below.

© 2020 McDermott Will & EmeryNational Law Review, Volume X, Number 126

TRENDING LEGAL ANALYSIS


About this Author

Elle Kaiser McDermott Will Emery SF Tax  State & Local Tax  Tax Controversies
Associate

Elle Kaiser focuses her practice on state and local tax (SALT) matters. She advises clients in various industries, including technology, banking, consumer products, energy, insurance, retail and transportation. Elle is experienced in both tax planning and tax disputes.

Elle has been involved in all phases of the discovery process through administrative appeals and in court. Elle identifies audit strategies, coordinates factual and legal development of issues, and drafts responses to multiple information document requests and audit issue presentation sheets from tax authorities.

628 218 3909
Troy Van Dongen Tax Lawyer McDermott
Partner

Troy Van Dongen focuses his practice on the resolution of state and local tax (SALT) controversies through negotiation and litigation. He advises clients across the country in a variety of state and local tax matters, including income, franchise, sales, and use taxes, and he has a particularly strong background in property taxation.

 

Troy’s experience includes a wide range of industries, including: manufacturing and software; banking and finance; biotechnology; hospital management; non-profit organizations; commercial office leasing; solar and geothermal power production; lodging; education; security services; oil and gas; telecommunications; paper manufacturing; and sports and entertainment. He also counsels clients on the tax consequences of new forms of communications technology and the unique tax challenges in the telecommunications industry.

He is also a member of our legal cannabis industry group. Our Cannabis Industry group is a multidisciplinary team of lawyers providing clients with regulatory, litigation, intellectual property, trade and tax services with respect to their investments and participation in the cannabis industry, all subject to the Firm’s obligations under federal and state laws and bar licensure rules.

628 218 3843
Charles Moll tax attorney McDermott
Partner

Charles (Chuck) Moll focuses his practice on state and local tax (SALT), primarily concentrating on the resolution of tax controversies. He regularly appears before the various California tax authorities—including the State Board of Equalization, the California Franchise Tax Board, the California Department of Tax and Fee Administration, and the Office of Tax Appeals—as well as local authorities such as assessors and assessment appeals boards. He has litigated at all levels of California’s courts, the US Tax Court, and the US Supreme Court.

Chuck’s practice includes tax matters in...

628 218 3842