AB 2201: State Board of Equalization: administration: interest.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2016-09-09
Existing law requires the payment of interest on late payments, or late prepayments, of tax, fee, or surcharge payments at the modified adjusted rate per month under the provisions of the Sales and Use Tax Law, Motor Vehicle Fuel Tax Law, Use Fuel Tax Law, Cigarette and Tobacco Products Tax Law, Alcoholic Beverage Tax Law, Energy Resources Surcharge Law, Emergency Telephone Users Surcharge Act, Hazardous Substances Tax Law, Integrated Waste Management Fee Law, Oil Spill Response, Prevention, and Administration Fees Law, Underground Storage Tank Maintenance Fee Law, Fee Collection Procedures Law, Diesel Fuel Tax Law, and the law governing the taxation of insurance companies. Interest is charged on a per-month basis, with one months interest charged for each month, or fraction of a month, that a payment or prepayment is unpaid. Existing law, until January 1, 2016, allowed the members of the State Board of Equalization, meeting as a public body, to find, under specified circumstances, that it is inequitable to compute interest on a monthly basis and to instead compute interest on a daily basis with respect to electronic payments or prepayments of taxes, fees, and surcharges.
This bill would reinstate those provisions.
Existing law requires the payment of interest on late payments, or late prepayments, of tax, fee, or surcharge payments at the modified adjusted rate per month under the provisions of the Sales and Use Tax Law, Motor Vehicle Fuel Tax Law, Use Fuel Tax Law, Cigarette and Tobacco Products Tax Law, Alcoholic Beverage Tax Law, Energy Resources Surcharge Law, Emergency Telephone Users Surcharge Act, Hazardous Substances Tax Law, Integrated Waste Management Fee Law, Oil Spill Response, Prevention, and Administration Fees Law, Underground Storage Tank Maintenance Fee Law, Fee Collection Procedures Law, Diesel Fuel Tax Law, and the law governing the taxation of insurance companies. Interest is charged on a per-month basis, with one months interest charged for each month, or fraction of a month, that a payment or prepayment is unpaid. Existing law, until January 1, 2016, allowed the members of the State Board of Equalization, meeting as a public body, to find, under specified circumstances, that it is inequitable to compute interest on a monthly basis and to instead compute interest on a daily basis with respect to electronic payments or prepayments of taxes, fees, and surcharges.
This bill would reinstate those provisions.
Existing law requires the payment of interest on late payments, or late prepayments, of tax, fee, or surcharge payments at the modified adjusted rate per month under the provisions of the Sales and Use Tax Law, Motor Vehicle Fuel Tax Law, Use Fuel Tax Law, Cigarette and Tobacco Products Tax Law, Alcoholic Beverage Tax Law, Energy Resources Surcharge Law, Emergency Telephone Users Surcharge Act, Hazardous Substances Tax Law, Integrated Waste Management Fee Law, Oil Spill Response, Prevention, and Administration Fees Law, Underground Storage Tank Maintenance Fee Law, Fee Collection Procedures Law, Diesel Fuel Tax Law, and the law governing the taxation of insurance companies. Interest is charged on a per-month basis, with one months interest charged for each month, or fraction of a month, that a payment or prepayment is unpaid. Existing law, until January 1, 2016, allowed the members of the State Board of Equalization, meeting as a public body, to find, under specified circumstances, that it is inequitable to compute interest on a monthly basis and to instead compute interest on a daily basis with respect to electronic payments or prepayments of taxes, fees, and surcharges.
This bill would reinstate those provisions.
(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or the prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments or prepayments of taxes.
SEC. 3.Section 7655.5 of the Revenue and Taxation Code is repealed.SEC. 4.Section 7655.5 is added to the Revenue and Taxation Code, to read:7655.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or the prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments or prepayments of taxes.
SEC. 5.Section 8876.5 of the Revenue and Taxation Code is repealed.SEC. 6.Section 8876.5 is added to the Revenue and Taxation Code, to read:8876.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
SEC. 7.Section 12631.5 of the Revenue and Taxation Code is repealed.SEC. 8.Section 12631.5 is added to the Revenue and Taxation Code, to read:12631.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, or a determination where no return has been filed.
(f)This section shall only apply to electronic payments or prepayments of taxes.
SEC. 9.Section 30281.5 of the Revenue and Taxation Code is repealed.SEC. 10.Section 30281.5 is added to the Revenue and Taxation Code, to read:30281.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no report or return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
SEC. 11.Section 32252.5 of the Revenue and Taxation Code is repealed.SEC. 12.Section 32252.5 is added to the Revenue and Taxation Code, to read:32252.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
SEC. 13.Section 40101.5 of the Revenue and Taxation Code is repealed.SEC. 14.Section 40101.5 is added to the Revenue and Taxation Code, to read:40101.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the surcharge was due until the date of payment, if all of the following occur:
(1)The payment of the surcharge was made one business day after the date the surcharge was due.
(2)The person was granted relief from all penalties that applied to that payment of the surcharge.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, or a determination where no return has been filed.
(f)This section shall only apply to electronic payments of surcharges.
SEC. 15.Section 41095.5 of the Revenue and Taxation Code is repealed.SEC. 16.Section 41095.5 is added to the Revenue and Taxation Code, to read:41095.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the surcharge was due until the date of payment, if all of the following occur:
(1)The payment of the surcharge was made one business day after the date the surcharge was due.
(2)The person was granted relief from all penalties that applied to that payment of the surcharge.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, or a determination where no return has been filed.
(f)This section shall only apply to electronic payments of surcharges.
SEC. 17.Section 43155.5 of the Revenue and Taxation Code is repealed.SEC. 18.Section 43155.5 is added to the Revenue and Taxation Code, to read:43155.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or the prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no report or return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments or prepayments of taxes.
SEC. 19.Section 45153.5 of the Revenue and Taxation Code is repealed.SEC. 20.Section 45153.5 is added to the Revenue and Taxation Code, to read:45153.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
SEC. 21.Section 46154.5 of the Revenue and Taxation Code is repealed.SEC. 22.Section 46154.5 is added to the Revenue and Taxation Code, to read:46154.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
SEC. 23.Section 50112.1 of the Revenue and Taxation Code is repealed.SEC. 24.Section 50112.1 is added to the Revenue and Taxation Code, to read:50112.1.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
SEC. 25.Section 55042.5 of the Revenue and Taxation Code is repealed.SEC. 26.Section 55042.5 is added to the Revenue and Taxation Code, to read:55042.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
SEC. 27.Section 60207.5 of the Revenue and Taxation Code is repealed.SEC. 28.Section 60207.5 is added to the Revenue and Taxation Code, to read:60207.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or the prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments or prepayments of taxes.
SEC. 3.Section 7655.5 of the Revenue and Taxation Code is repealed.SEC. 4.Section 7655.5 is added to the Revenue and Taxation Code, to read:7655.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or the prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments or prepayments of taxes.
SEC. 5.Section 8876.5 of the Revenue and Taxation Code is repealed.SEC. 6.Section 8876.5 is added to the Revenue and Taxation Code, to read:8876.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
SEC. 7.Section 12631.5 of the Revenue and Taxation Code is repealed.SEC. 8.Section 12631.5 is added to the Revenue and Taxation Code, to read:12631.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, or a determination where no return has been filed.
(f)This section shall only apply to electronic payments or prepayments of taxes.
SEC. 9.Section 30281.5 of the Revenue and Taxation Code is repealed.SEC. 10.Section 30281.5 is added to the Revenue and Taxation Code, to read:30281.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no report or return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
SEC. 11.Section 32252.5 of the Revenue and Taxation Code is repealed.SEC. 12.Section 32252.5 is added to the Revenue and Taxation Code, to read:32252.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
SEC. 13.Section 40101.5 of the Revenue and Taxation Code is repealed.SEC. 14.Section 40101.5 is added to the Revenue and Taxation Code, to read:40101.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the surcharge was due until the date of payment, if all of the following occur:
(1)The payment of the surcharge was made one business day after the date the surcharge was due.
(2)The person was granted relief from all penalties that applied to that payment of the surcharge.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, or a determination where no return has been filed.
(f)This section shall only apply to electronic payments of surcharges.
SEC. 15.Section 41095.5 of the Revenue and Taxation Code is repealed.SEC. 16.Section 41095.5 is added to the Revenue and Taxation Code, to read:41095.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the surcharge was due until the date of payment, if all of the following occur:
(1)The payment of the surcharge was made one business day after the date the surcharge was due.
(2)The person was granted relief from all penalties that applied to that payment of the surcharge.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, or a determination where no return has been filed.
(f)This section shall only apply to electronic payments of surcharges.
SEC. 17.Section 43155.5 of the Revenue and Taxation Code is repealed.SEC. 18.Section 43155.5 is added to the Revenue and Taxation Code, to read:43155.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or the prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no report or return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments or prepayments of taxes.
SEC. 19.Section 45153.5 of the Revenue and Taxation Code is repealed.SEC. 20.Section 45153.5 is added to the Revenue and Taxation Code, to read:45153.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
SEC. 21.Section 46154.5 of the Revenue and Taxation Code is repealed.SEC. 22.Section 46154.5 is added to the Revenue and Taxation Code, to read:46154.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
SEC. 23.Section 50112.1 of the Revenue and Taxation Code is repealed.SEC. 24.Section 50112.1 is added to the Revenue and Taxation Code, to read:50112.1.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
SEC. 25.Section 55042.5 of the Revenue and Taxation Code is repealed.SEC. 26.Section 55042.5 is added to the Revenue and Taxation Code, to read:55042.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
SEC. 27.Section 60207.5 of the Revenue and Taxation Code is repealed.SEC. 28.Section 60207.5 is added to the Revenue and Taxation Code, to read:60207.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or the prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments or prepayments of taxes.
(g)This section shall be operative only until January 1, 2016.
SEC. 2.Section 6591.6 is added to the Revenue and Taxation Code, to read:6591.6.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or the prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments or prepayments of taxes.
SEC. 3.Section 7655.5 of the Revenue and Taxation Code is repealed.7655.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or the prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments or prepayments of taxes.
(g)This section shall be operative only until January 1, 2016.
SEC. 4.Section 7655.5 is added to the Revenue and Taxation Code, to read:7655.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or the prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments or prepayments of taxes.
SEC. 5.Section 8876.5 of the Revenue and Taxation Code is repealed.8876.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
(g)This section shall be operative only until January 1, 2016.
SEC. 6.Section 8876.5 is added to the Revenue and Taxation Code, to read:8876.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
SEC. 7.Section 12631.5 of the Revenue and Taxation Code is repealed.12631.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, or a determination where no return has been filed.
(f)This section shall only apply to electronic payments or prepayments of taxes.
(g)This section shall be operative only until January 1, 2016.
SEC. 8.Section 12631.5 is added to the Revenue and Taxation Code, to read:12631.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, or a determination where no return has been filed.
(f)This section shall only apply to electronic payments or prepayments of taxes.
SEC. 9.Section 30281.5 of the Revenue and Taxation Code is repealed.30281.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no report or return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
(g)This section shall be operative only until January 1, 2016.
SEC. 10.Section 30281.5 is added to the Revenue and Taxation Code, to read:30281.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no report or return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
SEC. 11.Section 32252.5 of the Revenue and Taxation Code is repealed.32252.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
(g)This section shall be operative only until January 1, 2016.
SEC. 12.Section 32252.5 is added to the Revenue and Taxation Code, to read:32252.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
SEC. 13.Section 40101.5 of the Revenue and Taxation Code is repealed.40101.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the surcharge was due until the date of payment, if all of the following occur:
(1)The payment of the surcharge was made one business day after the date the surcharge was due.
(2)The person was granted relief from all penalties that applied to that payment of the surcharge.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, or a determination where no return has been filed.
(f)This section shall only apply to electronic payments of surcharges.
(g)This section shall be operative only until January 1, 2016.
SEC. 14.Section 40101.5 is added to the Revenue and Taxation Code, to read:40101.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the surcharge was due until the date of payment, if all of the following occur:
(1)The payment of the surcharge was made one business day after the date the surcharge was due.
(2)The person was granted relief from all penalties that applied to that payment of the surcharge.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, or a determination where no return has been filed.
(f)This section shall only apply to electronic payments of surcharges.
SEC. 15.Section 41095.5 of the Revenue and Taxation Code is repealed.41095.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the surcharge was due until the date of payment, if all of the following occur:
(1)The payment of the surcharge was made one business day after the date the surcharge was due.
(2)The person was granted relief from all penalties that applied to that payment of the surcharge.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, or a determination where no return has been filed.
(f)This section shall only apply to electronic payments of surcharges.
(g)This section shall be operative only until January 1, 2016.
SEC. 16.Section 41095.5 is added to the Revenue and Taxation Code, to read:41095.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the surcharge was due until the date of payment, if all of the following occur:
(1)The payment of the surcharge was made one business day after the date the surcharge was due.
(2)The person was granted relief from all penalties that applied to that payment of the surcharge.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, or a determination where no return has been filed.
(f)This section shall only apply to electronic payments of surcharges.
SEC. 17.Section 43155.5 of the Revenue and Taxation Code is repealed.43155.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or the prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no report or return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments or prepayments of taxes.
(g)This section shall be operative only until January 1, 2016.
SEC. 18.Section 43155.5 is added to the Revenue and Taxation Code, to read:43155.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1)The payment of tax or the prepayment was made one business day after the date the tax or prepayment was due.
(2)The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no report or return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments or prepayments of taxes.
SEC. 19.Section 45153.5 of the Revenue and Taxation Code is repealed.45153.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
(g)This section shall be operative only until January 1, 2016.
SEC. 20.Section 45153.5 is added to the Revenue and Taxation Code, to read:45153.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
SEC. 21.Section 46154.5 of the Revenue and Taxation Code is repealed.46154.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
(g)This section shall be operative only until January 1, 2016.
SEC. 22.Section 46154.5 is added to the Revenue and Taxation Code, to read:46154.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
SEC. 23.Section 50112.1 of the Revenue and Taxation Code is repealed.50112.1.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
(g)This section shall be operative only until January 1, 2016.
SEC. 24.Section 50112.1 is added to the Revenue and Taxation Code, to read:50112.1.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
SEC. 25.Section 55042.5 of the Revenue and Taxation Code is repealed.55042.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
(g)This section shall be operative only until January 1, 2016.
SEC. 26.Section 55042.5 is added to the Revenue and Taxation Code, to read:55042.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the fee was due until the date of payment, if all of the following occur:
(1)The payment of the fee was made one business day after the date the fee was due.
(2)The person was granted relief from all penalties that applied to that fee payment.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of fees.
SEC. 27.Section 60207.5 of the Revenue and Taxation Code is repealed.60207.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
(g)This section shall be operative only until January 1, 2016.
SEC. 28.Section 60207.5 is added to the Revenue and Taxation Code, to read:60207.5.(a)If the board finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1)The payment of tax was made one business day after the date the tax was due.
(2)The person was granted relief from all penalties that applied to that payment of tax.
(3)The person files a request for an oral hearing before the board.
(b)For purposes of this section, modified adjusted daily rate means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c)For purposes of this section, board means the members of the State Board of Equalization meeting as a public body.
(d)For purposes of this section, business day means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(e)This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no return has been filed or a jeopardy determination issued by the board.
(f)This section shall only apply to electronic payments of taxes.
|
Date
|
Status
|
|---|---|
| Apr 28, 2016 | Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0.) |
| Sep 9, 2016 | Chaptered by Secretary of State - Chapter 264, Statutes of 2016. |
| Sep 9, 2016 | Approved by the Governor. |
| Aug 22, 2016 | Enrolled and presented to the Governor at 4 p.m. |
| Aug 16, 2016 | Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5008.). |
| Aug 16, 2016 | In Assembly. Ordered to Engrossing and Enrolling. |
| Jun 28, 2016 | Read second time. Ordered to third reading. |
| Jun 27, 2016 | From committee: Be placed on second reading file pursuant to Senate Rule 28.8. |
| Jun 8, 2016 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 8). Re-referred to Com. on APPR. |
| May 5, 2016 | Referred to Com. on GOV. & F. |
| Feb 18, 2016 | Read first time. To print. |
| Apr 28, 2016 | Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0. Page 4595.) |
| Apr 28, 2016 | Read third time. Passed. Ordered to the Senate. |
| Apr 28, 2016 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Apr 21, 2016 | Read second time. Ordered to Consent Calendar. |
| Apr 20, 2016 | From committee: Do pass. To Consent Calendar. (Ayes 16. Noes 0.) (April 20). |
| Apr 12, 2016 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (April 11). Re-referred to Com. on APPR. |
| Mar 3, 2016 | Referred to Com. on REV. & TAX. |
| Feb 19, 2016 | From printer. May be heard in committee March 20. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 16, 2016 | Assembly 3rd Reading AB2201 Brough By Berryhill | Senate Floor |
Passed |
|
| Jun 8, 2016 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Governance and Finance |
Passed |
|
| Apr 28, 2016 | AB 2201 BROUGH Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Apr 20, 2016 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 11, 2016 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Revenue and Taxation |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| board of equalization | ** Support | Aug 16, 2016 |
| Board of Equalization Member Fiona Ma | ** Support | Aug 16, 2016 |
| California Chamber Of Commerce | ** Support | Aug 16, 2016 |
| California Taxpayers' Association | ** Support | Aug 16, 2016 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 2201
:
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 6/8/16
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach, Pavley
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 76-0, 4/28/16 (Consent) - See last page for vote
DIGEST: This bill reenacts the Board of Equalization’s authority to calculate interest on a daily, not monthly, basis for tax and fee payments made one business day late under specified circumstances.
Existing law:
- Creates the five-member Board of Equalization (BOE), composed of four members elected by district and the State Controller, to equalize rates and assessment practices among counties.
- Charges BOE with administering the Sales and Use Tax, locally-imposed transactions and use taxes, several excise taxes, and more than 30 other fee programs.
- Imposes penalties generally equal to 10 percent of the tax due, plus monthly, simple interest calculated beginning on the due date and ending on the date it was paid, when taxpayers pay taxes or fees after the due date.
- Requires, generally, BOE to calculate interest on a per-month basis, so one month’s interest is charged for each month or fraction of a month that a payment is late.
- Allows BOE to relieve the taxpayer of penalties when they find that the person's failure to make a payment in a timely manner was due to reasonable cause and circumstances beyond the person's control, and occurred notwithstanding ordinary care and the absence of willful neglect.
- Restricts BOE from waiving interest only in cases where the late payment was due to an error or unreasonable delay caused by BOE employees.
This bill:
- Allows BOE to compute interest at the modified adjusted daily rate for payments made one day after the due date, but only when meeting as a public body, and taking into account all facts and circumstances, determine that it is inequitable to compute interest on a monthly basis. BOE must also have granted relief from all penalties that applied to that payment, and the person must have filed a request for an oral hearing before BOE.
- States that its change to interest calculation does not apply to payments made pursuant to deficiency determinations, determinations where no return is filed, or jeopardy determinations.
- Defines several terms, and sets forth a method to calculate daily interest.
- Applies its change to the Sales and Use Tax, Motor Vehicle Fuel Tax, Use Fuel Tax, the Gross Premiums Tax, Cigarette Tax, Alcoholic Beverages Tax, Energy Resources Surcharge, Emergency Telephone Users Surcharge, Prepaid Mobile Telephony Services Surcharge, Integrated Waste Management Fee, Underground Storage Tank Fee, Fee Procedures Collections Law, and Diesel Fuel Tax.
Background
Until recently, the Legislature allowed BOE to instead charge interest at the modified adjusted daily rate when (SB 1028, Correa, Chapter 316, Statues of 2010):
- BOE, meeting as a public body, taking into account all facts and circumstances, determines that it is inequitable to compute interest on a monthly basis,
- The payment or prepayment was one business day late,
- BOE granted relief from all penalties that applied to that payment, and
- The person files a request for an oral hearing before BOE.
SB 1028 applied to the Sales and Use Tax, Motor Vehicle Fuel Tax, Use Fuel Tax, the Gross Premiums Tax, Cigarette and Tobacco Products Tax, Alcoholic Beverages Tax, Energy Resources Surcharge, Emergency Telephone Users Surcharge, Hazardous Substances Tax, Prepaid Mobile Telephony Services Surcharge, Integrated Waste Management Fee, Oil Spill Fee, Underground Storage Tank Fee, Diesel Fuel Tax, as well as the statute used to collect many other fees, the Fee Procedures Collections Law. However, SB 1028 sunset on January 1, 2016, so today, BOE must charge a full month’s interest for payments and prepayments made one day after the due date. BOE wants to reenact this authority.
For many years, BOE administrative policy allowed a one-day grace period when a payment was postmarked one day late. However, during a policy review, BOE counsel opined that no legal authority supported the grace period, so BOE ended it, until the Legislature enacted AB 1638 (Assembly Committee on Revenue and Taxation, Chapter 929, Statutes of 1999). AB 1638 allows BOE to establish a uniform policy to accept payments as timely when the payment or document’s envelope or delivery document’s stamped cancellation mark shows a date after the statutory due date, which uniform BOE policy implements to allow acceptance of payments postmarked one day after the due date. However, because this authority applied only to payments made by mail or commercial delivery service, late electronic payments are not eligible for the one-day grace period, which can create hardships due to mandatory electronic payment requirements imposed by state law on taxpayers with average monthly sale and use tax liability of $10,000 or more (or special tax liability of $20,000 or more). This bill reenacts SB 1028’s extension of the grace period to electronic payments made to BOE, similar to practices used by the Franchise Tax Board and Employment Development Department.
While SB 1028 contained a five-year sunset, this bill does not contain one. BOE states that it granted 122 interest relief claims in the past three years, ranging from $14.59 to $17,620.85.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Board of Equalization (source)
Board of Equalization Member Fiona Ma
California Chamber of Commerce
California Taxpayers Association
OPPOSITION: (Verified 6/28/16)
None received
ARGUMENTS IN SUPPORT: According to the author, “AB 2201 reinstates expired provisions to allow Members of the State Board of Equalization to have flexibility to address the inequity of applying an entire month’s interest to an electronic tax payment that is paid one day late, due to reasonable circumstances. It is unfair to charge a month’s worth of interest on tax liabilities that are just one day late often because they posted after the financial system stops processing them on the due date. This bill allows the BOE to continue a practice that provides reasonable relief for taxpayers.”
ASSEMBLY FLOOR: 76-0, 4/28/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Chávez, Daly, Mathis, Olsen
6/29/16 15:46:01
**** END ****
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Robert M. Hertzberg, Chair
2015 - 2016 Regular
Bill No: | AB 2201 | Hearing Date: | 6/8/16 |
Author: | Brough | Tax Levy: | No |
Version: | 2/18/16 | Fiscal: | Yes |
Consultant: | Grinnell | ||
State Board of Equalization: administration: interest
Reenacts the Board of Equalization’s authority to calculate interest on a daily, not monthly, basis for tax and fee payments made one business day late under specified circumstances.
Background
The California Constitution of 1879 created the five-member Board of Equalization (BOE), composed of four members elected by district and the State Controller, to equalize rates and assessment practices among counties. In addition to its property tax duties, BOE also administers the Sales and Use Tax, locally-imposed transactions and use taxes, several excise taxes, and more than 30 other fee programs.
When individuals who must pay taxes or fees to BOE do so after the date they are due, state law imposes penalties, generally 10 percent of the tax, and plus monthly, simple interest from the date the tax was due to the date it was paid. BOE determines the interest rate on underpayments by adding three percent to the rate charged by the Internal Revenue Service, which it reevaluates every January and July the rates are evaluated, currently six percent, or one-half of one percent monthly. Any interest rate change takes effect six months later and remains in effect for at least six months.
Historically, BOE generally calculates interest on a per-month basis, so one month’s interest is charged for each month or fraction of a month that a payment is late. For example, if a payment is three days late, a full month’s interest is due, or two month’s interest is due for a payment one month and three days late. Interest accumulates from the day after the date on which the amount of tax first became due in most cases. While BOE can grant penalty relief when they find that the person's failure to make a payment in a timely manner was due to reasonable cause and circumstances beyond the person's control, and occurred notwithstanding ordinary care and the absence of willful neglect, they can only waive interest due to an error or unreasonable delay caused by one of its employees.
In 2010, the Legislature allowed BOE to instead charge interest at the modified adjusted daily rate when (SB 1028, Correa):
- BOE, meeting as a public body, taking into account all facts and circumstances, determines that it is inequitable to compute interest on a monthly basis,
- The payment or prepayment was one business day late,
- BOE granted relief from all penalties that applied to that payment, and
- The person files a request for an oral hearing before BOE.
SB 1028 applied to the Sales and Use Tax, Motor Vehicle Fuel Tax, Use Fuel Tax, the Gross Premiums Tax, Cigarette and Tobacco Products Tax, Alcoholic Beverages Tax, Energy Resources Surcharge, Emergency Telephone Users Surcharge, Hazardous Substances Tax, Prepaid Mobile Telephony Services Surcharge, Integrated Waste Management Fee, Oil Spill Fee, Underground Storage Tank Fee, Diesel Fuel Tax, as well as the statute used to collect many other fees, the Fee Procedures Collections Law. However, SB 1028 sunset on January 1, 2016, so today, BOE must charge a full month’s interest for payments and prepayments made one day after the due date. BOE wants to reenact this authority.
Proposed Law
Assembly Bill 2201 reenacts the BOE’s authority to compute interest at the modified adjusted daily rate for payments made one day after the due date under the Sales and Use Tax, Motor Vehicle Fuel Tax, Use Fuel Tax, the Gross Premiums Tax, Cigarette Tax, Alcoholic Beverages Tax, Energy Resources Surcharge, Emergency Telephone Users Surcharge, Prepaid Mobile Telephony Services Surcharge, Integrated Waste Management Fee, Underground Storage Tank Fee, Fee Procedures Collections Law, and Diesel Fuel Tax. To do so, BOE must meet as a public body, and taking into account all facts and circumstances, determine that it is inequitable to compute interest on a monthly basis. Additionally, BOE must have granted relief from all penalties that applied to that payment, and the person must have filed a request for an oral hearing before BOE for the measure’s provisions to apply. The bill does not apply to payments made pursuant to deficiency determinations, determination where no return is filed, or a jeopardy determination. AB 2201 also defines several terms, and sets forth a method to calculate daily interest.
State Revenue Impact
BOE estimates state and local revenue losses of $78,000 annually.
Comments
1. Purpose of the bill. According to the author, “AB 2201 reinstates expired provisions to allow Members of the State Board of Equalization to have flexibility to address the inequity of applying an entire month’s interest to an electronic tax payment that is paid one day late, due to reasonable circumstances. It is unfair to charge a month’s worth of interest on tax liabilities that are just one day late often because they posted after the financial system stops processing them on the due date. This bill allows the BOE to continue a practice that provides reasonable relief for taxpayers.”
2. Grace and forgiveness. For many years, BOE administrative policy allowed a one-day grace period when a payment was postmarked one day late. However, during a policy review, BOE counsel opined that no legal authority supported the grace period, so BOE ended it, until the Legislature enacted AB 1638 (Assembly Committee on Revenue and Taxation, 1999). That bill allows BOE to establish a uniform policy to accept payments as timely when the payment or document’s envelope or delivery document’s stamped cancellation mark shows a date after the statutory due date, which uniform BOE policy implements to allow acceptance of payments postmarked one day after the due date. However, because this authority applied only to payments made by mail or commercial delivery service, late electronic payments are not eligible for the one day grace period, which can create hardships due to mandatory electronic payment requirements imposed by state law on taxpayers with average monthly sale and use tax liability of $10,000 or more (or special tax liability of $20,000 or more). AB 2201 would reenact SB 1028’s extension of the grace period to electronic payments made to BOE, similar to practices used by the Franchise Tax Board and Employment Development Department.
3. No sunset. While SB 1028 contained a five-year sunset, AB 2201 does not contain one. BOE states that it granted 122 interest relief claims in the past three years, ranging from $14.59 to $17,620.85. The Committee may wish to consider whether AB 2201 should contain a similar sunset, or whether this authority is sufficiently successful to merit its exclusion.
Assembly Actions
Assembly Revenue and Taxation 9-0
Assembly Appropriations 16-0
Assembly Floor 76-0
Support and Opposition
(6/2/16)
Support: BOE Member Fiona Ma, State Board of Equalization, California Chamber of Commerce, California Taxpayers Association.
Opposition: None received.
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Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
ABPCA Bill Id:AB 2201
Author:(Brough) – As Introduced Ver:February 18, 2016
Policy Committee: | Revenue and Taxation | Vote: | 9 - 0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill permanently reinstates an expired provision that allows the Board of Equalization (BOE) to impose one-day's interest on a late electronic payment in cases if the payment is one day late and board members find it would be inequitable to impose interest for an entire month.
FISCAL EFFECT:
An estimated state and local revenue loss of $78,000.
COMMENTS:
- Purpose. According to BOE, the sponsor, this bill would restore a provision that expired on January 1, 2016 that allows BOE to have flexibility in how it addresses the inequity of applying an entire month’s interest to an electronic tax payment that is paid one day late, due to reasonable circumstances.
- Background. Under current law, a person must pay a 10% penalty on a late payment to the BOE, plus interest. Unlike the Franchise Tax Board (FTB) and the Employment Development Department (EDD), interest is charged on monthly basis rather than daily basis. In cases where the payment is a single day late, BOE has developed policies to provide some reasonable relief to taxpayers. In 1999, BOE established a uniform policy allowing it to accept payments or documents mailed or delivered in an envelope postmarked one day after the due date as timely. In 2010, a similar policy was extended to electronic payments, allowing the BOE to charge just one day’s interest on electronic payments that were one day late rather than an entire month’s worth of interest, if the BOE finds that it would be inequitable to impose the full interest. That particular provision expired in January 2016.
- Who benefits? Unlike the BOE's one-day grace period for postmarked payments that applies uniformly to all taxpayers, the interest relief proposed by this bill is not available to a person unless, in addition to all other requirements, the BOE has already relieved the person from all penalties that applied to the payment of tax, fee or surcharge. Under current law, the BOE may only relieve a person from penalties if it finds that the person's failure to make a payment in a timely manner was due to reasonable cause and circumstances beyond the person's control, and occurred notwithstanding ordinary care and the absence of willful neglect. Supporters of the current policy contend that it is appropriate to have a more stringent late policy for electronic payments than mailed payments because the taxpayer has greater control over the electronic payment submission process than one reliant on the U.S. Postal Service or other delivery service – the taxpayer cannot blame a third party for the delay.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
Date of Hearing: April 11, 2016
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Sebastian Ridley-Thomas, Chair
ABPCA Bill Id:AB 2201 (
Author:Brough) – As Introduced Ver:February 18, 2016
Majority vote. Fiscal committee.
SUBJECT: State Board of Equalization: administration: interest
SUMMARY: Reinstates provisions of law that expired on January 1, 2016, allowing the Board of Equalization (BOE) to impose one-day's (rather than one-month's) interest on a late electronic payment or prepayment where the BOE members, meeting as a public body, find that it would be inequitable to impose interest for the entire month given that the payment or prepayment is only one day late. Specifically, this bill:
- Allows the BOE to compute interest on a late payment, or prepayment, of a specified tax, fee, or surcharge at the modified adjusted daily rate, instead of the modified adjusted rate per month or fraction thereof, if the BOE finds that it is inequitable, and the following occur:
- The payment or prepayment of tax, fee, or surcharge was made one business day after its due date;
- The person was granted relief from all penalties that applied to that payment or prepayment of tax, fee, or surcharge; and,
- The person files a request for an oral hearing before the board.
- Defines the terms "modified adjusted daily rate" and "modified adjusted rate per month" by reference to the Revenue and Taxation Code (R&TC) Section 6591.5.
- Disallows the modification of interest computation for any payment made pursuant to a deficiency determination, a determination where no return has been filed, or a jeopardy determination issued by the BOE.
- Specifies that the modification of interest computation shall only apply to the electronic payment or prepayment of tax, fee, or surcharge.
- Applies to payment or prepayment of tax, fee, or surcharge imposed pursuant to the Sales and Use Tax (SUT) Law, Motor Vehicle Fuel Tax Law, Use Fuel Tax Law, Cigarette and Tobacco Products Tax Law, Alcoholic Beverage Tax Law, Energy Resources Surcharge Law, Emergency Telephone Users Surcharge Act, Hazardous Substances Tax Law, Integrated Waste Management Fee Law, Oil Spill Response, Prevention, and Administration Fees Law, Underground Storage Tank Maintenance Fee Law, Fee Collection Procedures Law, Diesel Fuel Tax Law, and the law governing the taxation of insurance companies.
EXISTING LAW:
- Requires a person who pays a tax, fee, or surcharge liability after the statutory due date to pay a 10% penalty on the late payment, plus six percent interest annually (one-half percent monthly). Simple interest accrues on any late payment, from the tax due date to the last day of the month in which payment is made.
- Authorizes the BOE to relieve a person of penalties if it finds that the person's failure to make a timely payment is due to reasonable cause and circumstances, and in the absence of willful neglect.
- Provides limited authority for the BOE to relive a person of interest if it finds that the person's failure to make a timely payment is due to a disaster, an unreasonable error or delay by an employee of the BOE acting in his or her official capacity, or the person's reasonable reliance on written advice from the BOE.
- Authorizes the BOE, whenever deemed necessary to ensure voluntary compliance with due dates prescribed by law, to establish a uniform policy for the acceptance of a remittance, claim for credit or refund, or other document in cases where the cancellation mark on the envelope shows a date after the date specified by law.
- Provides that this BOE policy shall not be construed as an extension of the prescribed time limits for remitting payments, filing claims for refund or credit, submitting documents, returns, or other information.
- Requires specified taxpayers to remit amounts due via electronic funds transfer (EFT). For these taxpayers, the law requires that their EFT payments "settle into" the state's account on the next banking day following the tax due date. The law imposes a late payment penalty and interest, as described above, when a taxpayer fails to initiate an EFT payment in sufficient time so that the funds settle in the state's account in accordance with the law.
- Prescribes the following three methods for taxpayers to make an EFT payment:
- An automated clearinghouse (ACH) debit;
- An ACH credit; or,
- A Federal Reserve Wire Transfer (i.e., Fedwire).
- Allowed the BOE, until January 1, 2016, under certain circumstances, to impose a single day's interest (rather than a month's) on a late electronic payment or prepayment.
FISCAL EFFECT: The BOE estimates annual state and local revenue loss of $78,000.
COMMENTS:
- Author's Statement: The author provided the following statement in support of this bill:
AB 2201 reinstates expired provisions to allow Members of the State Board of Equalization to have flexibility to address the inequity of applying an entire month's interest (0.5%) to an electronic tax payment that is paid one day late, due to reasonable circumstances. It is unfair to charge a month's worth of interest on tax liabilities that are just one day late often because they posted after the financial system stops processing them on the due date. This bill allows the BOE to continue a practice that provides reasonable relief for taxpayers.
- Arguments in Support: The sponsor of this bill, the BOE, states: "AB 2201 could encourage taxpayers paying late to pay more promptly. This will encourage those otherwise law-abiding taxpayers who inadvertently missed the payment deadline to pay the tax the next day to avoid the interest charge for the entire month."
- History of Late Payments: During a 47-year period ending in 1997, the BOE's administrative policy allowed a one-day grace period when a taxpayer mailed a return or payment in an envelope postmarked one day after the due date. According to the BOE, this policy recognized the "potential complications inherent in the U.S. Postal Service" and gave the taxpayer the benefit of the doubt that the item in question was timely mailed. Upon further review, however, the BOE's legal staff determined that there was no legal basis for providing this one-day grace period and eliminated the policy. According to the BOE, the elimination of its one-day grace period caused late billings to increase dramatically, and led to hundreds of declarations requesting penalty and interest relief. As a result, the BOE sponsored successful legislation in 1999 authorizing the BOE to establish a uniform policy for the acceptance of a payment, claim for credit or refund, or other document delivered to the BOE via the U.S. Postal Service or a bona fide commercial delivery service where the envelope "shows a date after the date specified in law." Pursuant to this statutory authority, the BOE adopted a regulatory policy allowing it to accept payments or documents mailed or delivered in an envelope postmarked one day after the due date as timely.
Since this policy only applied to payments or documents that are mailed or physically delivered to the BOE, any payments or documents electronically submitted to the BOE one day after the due date continued to be deemed late. In effect, penalty and interest were not imposed on payments postmarked one day late, but they were imposed on payments electronically submitted to the BOE one day late. In order to address this perceived inequity, the BOE sponsored successful legislation in 2010 that allowed the BOE, in instances of an electronic payment made one day late, to impose one-day's interest instead of one-month's interest otherwise due if the person has already been granted relief from relevant penalties and the BOE finds in a public meeting that it would be inequitable to impose the full interest. The provisions of this legislation expired on January 1, 2016; as a result, one-month's interest is once again imposed on any late electronic payment even if only one day late.
- Encouraging More Prompt Payments: Since this bill maintains current penalty levels on late payments – the most severe delinquency charge – this bill is unlikely to encourage taxpayers to delay the remittance of timely payments. However, a taxpayer who inadvertently missed the payment deadline and will otherwise be charged a full month's interest may have an incentive to quickly remit the payment the next day rather than waiting until later in the month, if interest will be prorated.
- Navigating Electronic Transmission Deadlines: Existing law requires a taxpayer who has an average monthly SUT liability of at least $10,000 and special taxes accounts that have average monthly tax payments of at least $20,000 to remit amounts due electronically via EFT. According to the BOE, the standards for making a timely payment differ depending on the EFT method used. For example, ACH debit payments (the most commonly used EFT payment method in which the state, through its designated depository bank, originates a transaction debiting the taxpayer's bank account and crediting the state's bank account for the amount of tax) made later than 3:00 p.m. Pacific Standard Time, or that have the next banking day as the debit date, are considered late and delinquency charges apply. Moreover, each financial institution handles ACH payments differently. Thus, to be timely and avoid penalties and interest, taxpayers must initiate payment in accordance with a financial institution's processes to ensure that the deposit into the state's account occurs on the next banking day following the due date.
Other than EFT payments, most electronically transmitted payments that taxpayers initiate by midnight on the tax due date are regarded as timely even though the funds may be deposited into the state's account more than one day after the due date. The payment initiation date determines the payment's timeliness, just as the postmark date determines a mailed payment's timeliness. Rather than maintaining a separate policy for timeliness of EFT payments dependent on when the money is deposited into the state's bank account, the Committee may wish to consider whether the payment initiation date should be a sufficient time marker across all payment methods.
- Who Benefits? Unlike the BOE's one-day grace period for postmarked payments that applies uniformly to all taxpayers, the interest relief proposed by this bill is not available to a person unless, in addition to all other requirements, the BOE has already relieved the person from all penalties that applied to the payment of tax, fee or surcharge. Under current law, the BOE may only relieve a person from penalties if it finds that the person's failure to make a payment in a timely manner was due to reasonable cause and circumstances beyond the person's control, and occurred notwithstanding ordinary care and the absence of willful neglect. It is appropriate to have a more stringent late policy for electronic payments than mailed payments because the taxpayer has greater control over the electronic payment submission process than one reliant on the U.S. Postal Service or other delivery service – the taxpayer cannot blame a third party for the delay.
According to the BOE, there were 122 successful interest relief claims filed over the past three years. These claims, filed pursuant to the process this bill would reinstate, resulted in interest relief ranging from $14.59 to $17,620.85.
- Compounded Interest: Unlike the BOE, both the Franchise Tax Board (FTB) and Employment Development Department (EDD) charge interest on a daily basis for late tax payments, compounded daily, meaning that interest will accrue more quickly the longer a tax remains unpaid and will cease to be imposed once the tax is paid. If the tax payment is one day late, it will be charged interest for one day; if the tax payment is two days late, it will be charged interest for two days. Under this bill, however, any payment to the BOE that is two days late will be charged the full month's interest, rather than a daily proration of that amount. If this bill is aimed at addressing an inequity regarding how interest is imposed, consistency may require treating all taxpayers who pay late due to reasonable cause or circumstance beyond their control equally. The Committee may wish to consider whether requiring the BOE to calculate interest on a daily, instead of monthly, basis until the payment is received would be a more equitable practice.
- Sunset Date: When the Legislature first authorized the BOE to impose one-day’s interest on a late electronic payment or prepayment if it deemed imposing one-month’s interest to be inequitable, the statute contained a five-year sunset date to provide the Legislature with an opportunity to reevaluate the program. The BOE believes the program was effective and is sponsoring this bill to permanently reinstate the expired provisions of law.
- Related Legislation: AB 358 (Grove) would have expanded the BOE's authority to establish a uniform policy for the acceptance of specified remittances and documents after the due date to include delivery through electronic transmission. AB 358 was held by this Committee.
- Prior Legislation: SB 1028 (Correa), Chapter 316, Statutes of 2010, allowed the BOE, until January 1, 2016, under certain circumstances, to impose one-day's (rather than one-month's) interest on a late electronic payment or prepayment.
REGISTERED SUPPORT / OPPOSITION:
Support
Board of Equalization (Sponsor)
California Taxpayers Association
Fiona Ma, Chair, Board of Equalization
Opposition
None on file
Analysis Prepared by: Irene Ho / REV. & TAX. / (916) 319-2098
Discussed in Hearing
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