Private railroad car tax: valuation.

The California Constitution authorizes the Legislature to classify personal property for differential taxation or for exemption by means of a statute approved by a 23 vote of the membership of each house. Under the Private Railroad Car Tax Law, the State Board of Equalization assesses and taxes private railroad cars operated upon railroads in this state. In making an assessment, the board is required to determine the average number of each class of private railroad cars physically present in the state in the calendar year immediately preceding the fiscal year in which the tax is imposed upon the basis of car days. This bill would, commencing with the 2018–19 fiscal year and for each fiscal year thereafter, instead require the board, in making the assessment, to determine the physical presence of private railroad cars in the state in the calendar year immediately preceding the fiscal year in which the tax is imposed upon the basis of mileage. For assessments for the 2017–18 fiscal year, the bill would require the board to determine the physical presence of private railroad cars for the 2016 calendar year on the basis of both mileage and car days equally weighted. Existing law also requires the board, in making the above assessment, to value the cars by class based on the owner's acquisition cost, less depreciation. This bill would instead require the board, in making the assessment, to value the cars based on the owner's acquisition cost, including additions and betterments, less depreciation. Existing law defines the term "class of private railroad cars" for purposes of the Private Railroad Car Tax Law. This bill would delete the definition of the term "class of private railroad cars" and make various conforming changes. This bill would take effect immediately as a tax levy.