California Expands Penalty Relief for Late Property Payments

Posted on August 24, 2021

The onset of the Covid-19 pandemic in early 2020 created widespread uncertainty worldwide, most notably among businesses in the United States. This uncertainty led to confusion and frustration surrounding tax deadlines, which forced states to extend deadlines and excuse penalties accrued.

California currently imposes a 10% penalty on delinquent payments for property tax, unless a county auditor or tax collector cancels the penalty or other charges resulting from the tax delinquency due to “circumstances beyond the taxpayer’s control”. Effective July 23rd, 2021 California Senate Bill No. 219 (c. 131) additionally authorizes the auditor or tax collector to cancel any penalty incurred due to a “documented hardship resulting from shelter-in-place order” provided that the principal payment of tax due was paid by June 30th of the year in which the payment became delinquent.

Tips for the Taxpayer

In these uncertain times, it is important for businesses to be aware of opportunities for economic relief offered by state and local tax jurisdictions. If your company has experienced hardships during the Covid-19 pandemic, Allyn Tax professionals recommend exploring potential relief being offered for state and local taxes, along with additional business taxes where your company may have liabilities. Taking advantage of these potential savings may help businesses extend available funds to keep their operations running while continuing to navigate the current economic climate created by the pandemic. Receiving guidance from a state and local tax professional can help businesses ensure they are taking advantage of opportunities for tax savings.

How Can We Help?

Allyn’s tax team is staffed with seasoned tax professionals experienced in all aspects of Federal, multi-state and local tax compliance and consulting for large US and global corporations. We use that experience to your advantage.

Allyn files state and local property tax returns in every US taxing jurisdiction. Allyn obtains property tax data, analyzes it for proper classification, cost basis, and exemptions, and ensures timely and accurate property tax return filing and property tax bill payment processing.

We routinely conduct savings opportunity reviews in all US states for companies and advise clients with proactive measures to improve their tax compliance. Allyn can review your asset listing and returns, provide onsite property tax reviews, prepare and file returns and manage the payment of property taxes throughout the US. We can manage your tax compliance, create a solid tax process, and provide audit defense for your company.

Contact us and we can provide a customized cost-effective solution to meet your company’s needs. For further information on Allyn Tax services, please contact: tax@allynintl.com.

For More Information

If you are interested in learning more about this topic or other tax topics, please visit our Tax Publications under News & Publications at www.allynintl.com.

Contributor: Courtney Sboro


About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.