SB 11: Taxes: interest: penalties.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2017-09-01
Existing law requires the State Board of Equalization to administer various taxes, surcharges, and fees, including the Sales and Use Tax Law, the Motor Vehicle Fuel Tax Law, the Use Fuel Tax Law, the Cigarette and Tobacco Products Tax Law, the Alcoholic Beverage Tax Law, the Energy Resources Surcharge Law, the Emergency Telephone Users Surcharge Law, the Hazardous Substances Tax Law, the Integrated Waste Management Fee Law, the Oil Spill Response, Prevention, and Administration Fees Law, the Underground Storage Tank Maintenance Fee Law, the Fee Collection Procedures Law, and the Diesel Fuel Tax Law. Existing law requires the payment of penalties and interest for a failure to timely pay taxes, from the date on which those amounts became due and payable to the state until the date of payment.
This bill would prohibit, as of specified dates under the laws listed above, the assessment of interest and specified penalties against any person for failure to timely file a return or make payments of any taxes, surcharges, or fees imposed under those laws if the failure to timely file a return or make a payment is attributable to the failure of the State Board of Equalizations or its successor agencys Internet Web site, as provided, unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period. The bill would only permit interest or penalty relief if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person. The bill would make these provisions operative on specified dates subject to a specified contingency, and would require the board or its successor agency to post notice of the operation of these provisions on its Internet Web site.
Existing law requires the State Board of Equalization to administer various taxes, surcharges, and fees, including the Sales and Use Tax Law, the Motor Vehicle Fuel Tax Law, the Use Fuel Tax Law, the Cigarette and Tobacco Products Tax Law, the Alcoholic Beverage Tax Law, the Energy Resources Surcharge Law, the Emergency Telephone Users Surcharge Law, the Hazardous Substances Tax Law, the Integrated Waste Management Fee Law, the Oil Spill Response, Prevention, and Administration Fees Law, the Underground Storage Tank Maintenance Fee Law, the Fee Collection Procedures Law, and the Diesel Fuel Tax Law. Existing law requires the payment of penalties and interest for a failure to timely pay taxes, from the date on which those amounts became due and payable to the state until the date of payment.
This bill would prohibit, as of specified dates under the laws listed above, the assessment of interest and specified penalties against any person for failure to timely file a return or make payments of any taxes, surcharges, or fees imposed under those laws if the failure to timely file a return or make a payment is attributable to the failure of the State Board of Equalizations Equalizations or its successor agencys, Internet Web site, as provided, unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period. The bill would only permit interest or penalty relief if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person. The bill would make these provisions operative on specified dates subject to a specified contingency, and would require the board board or its successor agency to post notice of the operation of these provisions on its Internet Web site.
Existing law requires the State Board of Equalization to administer various taxes and taxes, surcharges, and fees, including the Sales and Use Tax Law, the Motor Vehicle Fuel Tax Law, the Use Fuel Tax Law, the Cigarette and Tobacco Products Tax Law, the Alcoholic Beverage Tax Law, the Energy Resources Surcharge Law, the Emergency Telephone Users Surcharge Law, the Hazardous Substances Tax Law, the Integrated Waste Management Fee Law, the Oil Spill Response, Prevention, and Administration Fees Law, the Underground Storage Tank Maintenance Fee Law, the Fee Collection Procedures Law, and the Diesel Fuel Tax Law. Existing law requires the payment of penalties and interest for a failure to timely pay taxes, from the date on which those amounts became due and payable to the state until the date of payment.
This bill would prohibit, beginning January 1, 2019, as of specified dates under the laws listed above, the assessment of interest and specified penalties against any person for failure to make payments of any taxes taxes, surcharges, or fees imposed under those laws if the failure to make a payment is attributable to the failure of the State Board of Equalizations Internet Web site, as provided, unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period. The bill would only permit interest or penalty relief if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person. The bill would make these provisions operative on specified dates subject to a specified contingency, and would require the board to post notice of the operation of these provisions on its Internet Web site.
Existing law requires the State Board of Equalization to administer various taxes and fees, including the Sales and Use Tax Law, the Motor Vehicle Fuel Tax Law, the Use Fuel Tax Law, the Cigarette and Tobacco Products Tax Law, the Alcoholic Beverage Tax Law, the Energy Resources Surcharge Law, the Emergency Telephone Users Surcharge Law, the Hazardous Substances Tax Law, the Integrated Waste Management Fee Law, the Oil Spill Response, Prevention, and Administration Fees Law, the Underground Storage Tank Maintenance Fee Law, the Fee Collection Procedures Law, and the Diesel Fuel Tax Law. Existing law requires the payment of penalties and interest for a failure to timely pay taxes, from the date on which those amounts became due and payable to the state until the date of payment.
This bill would prohibit, beginning January 1, 2019, under the laws listed above, the assessment of interest and specified penalties against any person for failure to make payments of any taxes imposed under those laws if the failure to make a payment is attributable to the failure of the State Board of Equalizations Internet Web site, as provided, unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period. The bill would only permit interest or penalty relief if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
Existing law requires the State Board of Equalization to administer various taxes and fees, including the Sales and Use Tax Law, the Motor Vehicle Fuel Tax Law, the Use Fuel Tax Law, the Cigarette and Tobacco Products Tax Law, the Alcoholic Beverage Tax Law, the Energy Resources Surcharge Law, the Emergency Telephone Users Surcharge Law, the Hazardous Substances Tax Law, the Integrated Waste Management Fee Law, the Oil Spill Response, Prevention, and Administration Fees Law, the Underground Storage Tank Maintenance Fee Law, the Fee Collection Procedures Law, and the Diesel Fuel Tax Law. Existing law requires the payment of penalties and interest for a failure to timely pay taxes, from the date on which those amounts became due and payable to the state until the date of payment. That law authorizes the State Board of Equalization, in its discretion, to relieve all or any part of those amounts imposed under specified circumstances.
This bill would prohibit prohibit, beginning January 1, 2019, under the laws listed above, the assessment of interest and specified penalties against any person for failure to make payments of any taxes imposed under the Sales and Use Tax Law those laws if the failure to make a payment is attributable to the failure of the State Board of Equalizations Internet Web site. site, as provided, unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
The Sales and Use Tax Law imposes a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. That law requires the payment of penalties and interest for a failure to timely pay taxes, from the date on which those amounts became due and payable to the state until the date of payment. That law authorizes the State Board of Equalization, in its discretion, to relieve all or any part of those amounts imposed under specified circumstances.
This bill would prohibit the assessment of interest and penalties against any person for failure to make payments of any taxes imposed under the Sales and Use Tax Law if the failure to make a payment is attributable to the failure of the State Board of Equalizations Internet Web site.
(a)Beginning July 1, 2018, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 6476, 6477, 6479.3, 6480.4, and 6591 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2018, or (2) prior to July 1, 2018, on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 2.Section 7658.3 is added to the Revenue and Taxation Code, to read:7658.3.(a)Beginning July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 7655, 7659.5, 7659.6, and 7659.9 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019, or (2) prior to July 1, 2019, on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 3.Section 8879.5 is added to the Revenue and Taxation Code, to read:8879.5.(a)Beginning July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 8760 and 8876 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019, or (2) prior to July 1, 2019, on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 4.Section 30284.5 is added to the Revenue and Taxation Code, to read:30284.5.(a)Beginning July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 30190 and 30281 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019, or (2) prior to July 1, 2019, on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 5.Section 32257.5 is added to the Revenue and Taxation Code, to read:32257.5.(a)Beginning July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 32252 and 32260 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019, or (2) prior to July 1, 2019, on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 6.Section 40104.5 is added to the Revenue and Taxation Code, to read:40104.5.(a)Beginning July 1, 2020, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of surcharge required to be collected and paid to the state is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 40067 and 40101 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of surcharge within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2020, or (2) prior to July 1, 2020, on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the surcharge imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 7.Section 41098.5 is added to the Revenue and Taxation Code, to read:41098.5.(a)Beginning July 1, 2020, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of surcharge required to be collected and paid to the state is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 41060 and 41095 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of surcharge within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2020, or (2) prior to July 1, 2020, on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the surcharge imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 8.Section 43157.5 is added to the Revenue and Taxation Code, to read:43157.5.(a)Beginning July 1, 2020, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 43152.12, 43152.15, 43155, and 43170 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2020, or (2) prior to July 1, 2020, on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 9.Section 45155.5 is added to the Revenue and Taxation Code, to read:45155.5.(a)Beginning July 1, 2020, and notwithstanding any other law, if a persons failure to file a timely return or pay any fee to the state or any amount of fee required to be collected and paid to the state is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 45153 and 45160 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of fee within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2020, or (2) prior to July 1, 2020, on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the fee imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 10.Section 46156.5 is added to the Revenue and Taxation Code, to read:46156.5.(a)Beginning July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of fee to the state or any amount of fee required to be collected and paid to the state is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 46154, 46154.1, and 46160 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of fee within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019, or (2) prior to July 1, 2019, on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the fee imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 11.Section 50111.5 is added to the Revenue and Taxation Code, to read:50111.5.(a)Beginning July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of fee to the state or any amount of fee required to be collected and paid to the state is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 50112 and 50112.7 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of fee within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019, or (2) prior to July 1, 2019, on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the fee imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 12.Section 55044.5 is added to the Revenue and Taxation Code, to read:55044.5.(a)Beginning July 1, 2020, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of fee is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 55042 and 55050 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of fee within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2020, or (2) prior to July 1, 2020, on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the fee imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 13.Section 60213 is added to the Revenue and Taxation Code, to read:60213.(a)Beginning July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 60207 and 60250 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019, or (2) prior to July 1, 2019, on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
(a)Beginning July 1, 2018, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 6476, 6477, 6479.3, 6480.4, and 6591 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2018 or (2) prior to July 1, 2018 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 2.Section 7658.3 is added to the Revenue and Taxation Code, to read:7658.3.(a)Beginning July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 7655, 7659.5, 7659.6, and 7659.9 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019 or (2) prior to July 1, 2019 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 3.Section 8879.5 is added to the Revenue and Taxation Code, to read:8879.5.(a)Beginning July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 8760 and 8876 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019 or (2) prior to July 1, 2019 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 4.Section 30284.5 is added to the Revenue and Taxation Code, to read:30284.5.(a)Beginning July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 30190 and 30281 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019 or (2) prior to July 1, 2019 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 5.Section 32257.5 is added to the Revenue and Taxation Code, to read:32257.5.(a)Beginning July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 32252 and 32260 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019 or (2) prior to July 1, 2019 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 6.Section 40104.5 is added to the Revenue and Taxation Code, to read:40104.5.(a)Beginning July 1, 2020, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of surcharge required to be collected and paid to the state is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 40067 and 40101 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of surcharge within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2020 or (2) prior to July 1, 2020 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the surcharge imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 7.Section 41098.5 is added to the Revenue and Taxation Code, to read:41098.5.(a)Beginning July 1, 2020, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of surcharge required to be collected and paid to the state is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 41060 and 41095 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of surcharge within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2020 or (2) prior to July 1, 2020 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the surcharge imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 8.Section 43157.5 is added to the Revenue and Taxation Code, to read:43157.5.(a)Beginning July 1, 2020, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 43152.12, 43152.15, 43155, and 43170 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2020 or (2) prior to July 1, 2020 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 9.Section 45155.5 is added to the Revenue and Taxation Code, to read:45155.5.(a)Beginning July 1, 2020, and notwithstanding any other law, if a persons failure to file a timely return or pay any fee to the state or any amount of fee required to be collected and paid to the state is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 45153 and 45160 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of fee within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2020 or (2) prior to July 1, 2020 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the fee imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 10.Section 46156.5 is added to the Revenue and Taxation Code, to read:46156.5.(a)Beginning July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of fee to the state or any amount of fee required to be collected and paid to the state is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 46154, 46154.1, and 46160 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of fee within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019 or (2) prior to July 1, 2019 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the fee imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 11.Section 50111.5 is added to the Revenue and Taxation Code, to read:50111.5.(a)Beginning July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of fee to the state or any amount of fee required to be collected and paid to the state is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 50112 and 50112.7 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of fee within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019 or (2) prior to July 1, 2019 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the fee imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 12.Section 55044.5 is added to the Revenue and Taxation Code, to read:55044.5.(a)Beginning July 1, 2020, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of fee is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 55042 and 55050 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of fee within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2020 or (2) prior to July 1, 2020 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the fee imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
SEC. 13.Section 60213 is added to the Revenue and Taxation Code, to read:60213.(a)Beginning July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 60207 and 60250 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to file or pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019 or (2) prior to July 1, 2019 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(d)For purposes of this section, board shall include any successor agency of the State Board of Equalization.
(a)Beginning January 1, 2019, July 1, 2018, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 6476, 6477, 6479.3, 6480.4, and 6591 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2018 or (2) prior to July 1, 2018 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
SEC. 2.Section 7658.3 is added to the Revenue and Taxation Code, to read:7658.3.(a)Beginning January 1, July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 7655, 7659.5, 7659.6, and 7659.9 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019 or (2) prior to July 1, 2019 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
SEC. 3.Section 8879.5 is added to the Revenue and Taxation Code, to read:8879.5.(a)Beginning January 1, July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 8760 and 8876 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019 or (2) prior to July 1, 2019 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
SEC. 4.Section 30284.5 is added to the Revenue and Taxation Code, to read:30284.5.(a)Beginning January 1, July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 30190 and 30281 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019 or (2) prior to July 1, 2019 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
SEC. 5.Section 32257.5 is added to the Revenue and Taxation Code, to read:32257.5.(a)Beginning January 1, July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 32252 and 32260 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019 or (2) prior to July 1, 2019 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
SEC. 6.Section 40104.5 is added to the Revenue and Taxation Code, to read:40104.5.(a)Beginning January 1, 2019, July 1, 2020, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is surcharge required to be collected and paid to the state is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 40067 and 40101 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax surcharge within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2020 or (2) prior to July 1, 2020 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the surcharge imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
SEC. 7.Section 41098.5 is added to the Revenue and Taxation Code, to read:41098.5.(a)Beginning January 1, 2019, July 1, 2020, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part surcharge required to be collected and paid to the state is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 41060 and 41095 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax surcharge within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2020 or (2) prior to July 1, 2020 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the surcharge imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
SEC. 8.Section 43157.5 is added to the Revenue and Taxation Code, to read:43157.5.(a)Beginning January 1, 2019, July 1, 2020, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 43152.12, 43152.15, 43155, and 43170 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2020 or (2) prior to July 1, 2020 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
SEC. 9.Section 45155.5 is added to the Revenue and Taxation Code, to read:45155.5.(a)Beginning January 1, 2019, July 1, 2020, and notwithstanding any other law, if a persons failure to file a timely return or pay any fee to the state or any amount of tax imposed under this part fee required to be collected and paid to the state is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 45153 and 45160 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax fee within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2020 or (2) prior to July 1, 2020 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the fee imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
SEC. 10.Section 46156.5 is added to the Revenue and Taxation Code, to read:46156.5.(a)Beginning January 1, July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part fee to the state or any amount of fee required to be collected and paid to the state is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 46154, 46154.1, and 46160 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax fee within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019 or (2) prior to July 1, 2019 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the fee imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
SEC. 11.Section 50111.5 is added to the Revenue and Taxation Code, to read:50111.5.(a)Beginning January 1, July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is fee to the state or any amount of fee required to be collected and paid to the state is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 50112 and 50112.7 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax fee within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019 or (2) prior to July 1, 2019 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the fee imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
SEC. 12.Section 55044.5 is added to the Revenue and Taxation Code, to read:55044.5.(a)Beginning January 1, 2019, July 1, 2020, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part fee is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 55042 and 55050 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax fee within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2020 or (2) prior to July 1, 2020 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the fee imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
SEC. 13.Section 60213 is added to the Revenue and Taxation Code, to read:60213.(a)Beginning January 1, July 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 60207 and 60250 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
(c)This section shall become operative on either (1) July 1, 2019 or (2) prior to July 1, 2019 on the date that the Department of Technology or the board reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. The board shall post information about this section, including notice of the operative date of this section, on the homepage of its Internet Web site.
(a)Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 6476, 6477, 6479.3, 6480.4, and 6591 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
SEC. 2.Section 7658.3 is added to the Revenue and Taxation Code, to read:7658.3.(a)Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 7655, 7659.5, 7659.6, and 7659.9 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
SEC. 3.Section 8879.5 is added to the Revenue and Taxation Code, to read:8879.5.(a)Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 8760 and 8876 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
SEC. 4.Section 30284.5 is added to the Revenue and Taxation Code, to read:30284.5.(a)Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 30190 and 30281 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
SEC. 5.Section 32257.5 is added to the Revenue and Taxation Code, to read:32257.5.(a)Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 32252 and 32260 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
SEC. 6.Section 40104.5 is added to the Revenue and Taxation Code, to read:40104.5.(a)Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 40067 and 40101 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
SEC. 7.Section 41098.5 is added to the Revenue and Taxation Code, to read:41098.5.(a)Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 41060 and 41095 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
SEC. 8.Section 43157.5 is added to the Revenue and Taxation Code, to read:43157.5.(a)Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 43152.12, 43152.15, 43155, and 43170 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
SEC. 9.Section 45155.5 is added to the Revenue and Taxation Code, to read:45155.5.(a)Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 45153 and 45160 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
SEC. 10.Section 46156.5 is added to the Revenue and Taxation Code, to read:46156.5.(a)Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 46154, 46154.1, and 46160 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
SEC. 11.Section 50111.5 is added to the Revenue and Taxation Code, to read:50111.5.(a)Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 50112 and 50112.7 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
SEC. 12.Section 55044.5 is added to the Revenue and Taxation Code, to read:55044.5.(a)Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 55042 and 55050 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
SEC. 13.Section 60213 is added to the Revenue and Taxation Code, to read:60213.(a)Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 60207 and 60250 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
(b)For the purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
Beginning January 1, 2018, 2019, and notwithstanding any other law, interest and penalties shall not be assessed against any person for failure to make payments of any taxes imposed under this part if the failure to make a payment is attributable if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure or crash of the boards Internet Web site. site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 6476, 6477, 6479.3, 6480.4, and 6591 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
SEC. 2.Section 7658.3 is added to the Revenue and Taxation Code, to read:7658.3.Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 7655, 7659.5, 7659.6, and 7659.9 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
SEC. 3.Section 8879.5 is added to the Revenue and Taxation Code, to read:8879.5.Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 8760 and 8876 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
SEC. 4.Section 30284.5 is added to the Revenue and Taxation Code, to read:30284.5.Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 30190 and 30281 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
SEC. 5.Section 32257.5 is added to the Revenue and Taxation Code, to read:32257.5.Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 32252 and 32260 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
SEC. 6.Section 40104.5 is added to the Revenue and Taxation Code, to read:40104.5.Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 40067 and 40101 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
SEC. 7.Section 41098.5 is added to the Revenue and Taxation Code, to read:41098.5.Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 41060 and 41095 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
SEC. 8.Section 43157.5 is added to the Revenue and Taxation Code, to read:43157.5.Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 43152.12, 43152.15, 43155, and 43170 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
SEC. 9.Section 45155.5 is added to the Revenue and Taxation Code, to read:45155.5.Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 45153 and 45160 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
SEC. 10.Section 46156.5 is added to the Revenue and Taxation Code, to read:46156.5.Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 46154, 46154.1, and 46160 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
SEC. 11.Section 50111.5 is added to the Revenue and Taxation Code, to read:50111.5.Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 50112 and 50112.7 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
SEC. 12.Section 55044.5 is added to the Revenue and Taxation Code, to read:55044.5.Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 55042 and 55050 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
SEC. 13.Section 60213 is added to the Revenue and Taxation Code, to read:60213.Beginning January 1, 2019, and notwithstanding any other law, if a persons failure to file a timely return or pay any amount of tax imposed under this part is attributable to the failure of the boards Internet Web site resulting in an unacceptable outage period on the due date of the return or payment, the penalties required by Sections 60207 and 60250 shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the amount of tax within a reasonable time after the conclusion of the outage period.
Beginning January 1, 2018, and notwithstanding any other law, interest and penalties shall not be assessed against any person for failure to make payments of any taxes imposed under this part if the failure to make a payment is attributable to the failure or crash of the boards Internet Web site.
|
Date
|
Status
|
|---|---|
| Mar 3, 2018 | Last day to consider Governor’s veto pursuant to Joint Rule 58.5. |
| Oct 2, 2017 | In Senate. Consideration of Governor's veto pending. |
| Oct 2, 2017 | Vetoed by the Governor. |
| Sep 6, 2017 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 31, 2017 | Assembly amendments concurred in. (Ayes 37. Noes 0.) Ordered to engrossing and enrolling. |
| Aug 29, 2017 | Ordered to special consent calendar. |
| Aug 24, 2017 | In Senate. Concurrence in Assembly amendments pending. |
| Aug 24, 2017 | Read third time. Passed. Ordered to the Senate. |
| Jul 20, 2017 | Read second time. Ordered to consent calendar. |
| Jul 19, 2017 | From committee: Do pass. Ordered to consent calendar. (Ayes 16. Noes 0.) (July 19). |
| Jul 5, 2017 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 3, 2017 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (June 26). |
| Jun 1, 2017 | Referred to Com. on REV. & TAX. |
| May 23, 2017 | In Assembly. Read first time. Held at Desk. |
| May 22, 2017 | Read third time. Passed. (Ayes 37. Noes 0. Page 1133.) Ordered to the Assembly. |
| May 16, 2017 | Read second time. Ordered to third reading. |
| May 15, 2017 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| May 9, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR. |
| May 4, 2017 | Set for hearing May 15. |
| May 2, 2017 | May 8 set for first hearing canceled at the request of author. |
| May 1, 2017 | Set for hearing May 8. |
| Apr 26, 2017 | Read second time and amended. Re-referred to Com. on APPR. |
| Apr 25, 2017 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0. Page 744.) (April 19). |
| Apr 17, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F. |
| Mar 21, 2017 | Set for hearing April 19. |
| Jan 12, 2017 | Referred to Com. on GOV. & F. |
| Dec 6, 2016 | From printer. May be acted upon on or after January 5. |
| Dec 5, 2016 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 31, 2017 | Special Consent Calendar # SB11 | Senate Floor |
Passed |
|
| Aug 24, 2017 | SB 11 Gaines Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Jul 19, 2017 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jun 26, 2017 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Revenue and Taxation |
Passed |
|
| May 22, 2017 | Senate 3rd Reading SB11 Gaines | Senate Floor |
Passed |
|
| Apr 19, 2017 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Governance and Finance |
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 | Jan 2, 2018 |
| Board of Equalization Member George Runner | ** Support | Jan 2, 2018 |
| California Chamber Of Commerce | ** Support | Jan 2, 2018 |
| California Society Of Enrolled Agents | ** Support | Jan 2, 2018 |
| California Taxpayers Association | ** Support | Jan 2, 2018 |
| state board of equalization member, first district | ** Support | Jun 23, 2017 |
| Unknown. | ** Against | Apr 17, 2017 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
VETO
Bill No: SB 11
:
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 4/19/17
AYES: McGuire, Nguyen, Beall, Hernandez, Hertzberg, Lara, Moorlach
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 37-0, 5/22/17
AYES: Allen, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, De León, Dodd, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Newman, Nguyen, Nielsen, Portantino, Roth, Skinner, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk
NO VOTE RECORDED: Anderson, Fuller, Pan
SENATE FLOOR: 37-0, 8/31/17 (Consent)
AYES: Allen, Anderson, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, De León, Dodd, Fuller, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Jackson, Lara, Leyva, McGuire, Mendoza, Mitchell, Moorlach, Morrell, Newman, Nguyen, Nielsen, Pan, Roth, Skinner, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk
NO VOTE RECORDED: Hueso, Monning, Portantino
ASSEMBLY FLOOR: 76-0, 8/24/17 (Consent) - See last page for vote
SOURCE: Board of Equalization Member George Runner
DIGEST:
This bill provides that the Board of Equalization (BOE) shall not impose penalties or interest against any person for failure to pay any tax if the failure to pay is attributable to the failure or crash of BOE’s Internet Web site.
Existing law:
- Creates the five-member BOE, composed of four members elected by district and the State Controller, to equalize property tax rates and assessment practices among counties (California Constitution, Article XIII, Section 17).
- Directs BOE to administer the Sales and Use Tax, locally-imposed transactions and use taxes, several excise taxes, and more than 30 other fee programs.
- Requires taxpayers to generally pay taxes or fees to BOE before the end of the month following the close of the reporting period, which is usually the calendar quarter.
- Imposes penalties, generally 10 percent of the tax due, plus monthly, simple interest based on the tax due from the date the tax was due to the date it was paid. The same procedural requirements exist for many other BOE tax and free programs, as well as the state’s general purpose statute that guides BOE administration of several fees, the Fee Collections Procedures Law.
- Allows BOE to extend the period to file a return or pay tax for one month for good cause, provided that the taxpayer files a request within or before the extension period. If granted, taxpayers are usually still liable for the one month’s interest, but don’t pay a penalty, and can file the return and remit the tax one month late.
- Permits BOE to relieve penalties when the failure is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect.
- Allows BOE to relieve interest where the failure was due in whole or in part to an unreasonable delay by a BOE employee acting in his or her official capacity (AB 821, Takasugi, Chapter 612, Statutes of 1998). BOE can only grant relief when no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the taxpayer.
- Requires the taxpayer to file a statement with BOE under penalty of perjury to have penalties or interest waived for any of the above cases.
- Creates the California Department of Tax and Fee Administration (CDTFA), and transfers almost all non-constitutional tax administration functions from BOE to CDTFA as of July 1, 2017 (AB 102, Committee on Budget, Chapter 16, Statutes of 2017).
This bill:
- Provides that BOE shall not impose penalties or interest against any person for failure to pay any tax if the failure to pay is attributable to the failure or crash of BOE’s Internet Web site.
- States that BOE can only grant relief when no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the taxpayer.
- Makes the bill operative on either (a) July 1, 2018, or (b) prior to July 1, 2018, on the date that the Department of Technology or BOE reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. BOE must post information about this bill, including notice of the operative date, on the homepage of its Internet Web site.
- Applies this change to the Sales and Use Tax Law; Motor Vehicle Fuel Tax Law; Use Fuel Tax Law; Cigarette Tax Law; Alcoholic Beverage Tax Law; Energy Resources Surcharge Tax Law; Emergency Telephone Users Surcharge Law; Hazardous Substances Tax Law; Integrated Waste Management Fee Law; Oil Spill Prevention, Response, and Administration Fee Law; Underground Storage Tank Maintenance Fee Law; Fee Collection Procedures Law; and Diesel Fuel Tax Law.
- States that its provisions apply to any successor agency to BOE.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Assembly Appropriations Committee, minor and absorbable costs for BOE or its successor agency to update publications and processes. This bill is not expected to generate substantia penalty or interest revenue because a Web site failure already meets the current criteria for relief.
Board of Equalization Member George Runner (source)
Board of Equalization
California Chamber of Commerce
California Society of Enrolled Agents
California Taxpayers Association
OPPOSITION: (Verified 10/10/17)
None received
ARGUMENTS IN SUPPORT: According to the author, “The California Board of Equalization (BOE) currently has the authority to grant relief of interest and penalties in the case of a BOE system failure that prevents a taxpayer from filing or paying a return, however, it is the responsibility of the taxpayer to request relief. None of the current statutory provisions provide for a proactive relief or authorize the BOE not to impose penalties or interest in the case of a BOE website failure. Now tax payers, even if delays are the fault of a BOE computer failure, must file for relief. This bill would give the BOE authority to relieve tax payers from having to jump through hoops to file for relief to waive penalties and interest in the event of another system failure.”
GOVERNOR'S VETO MESSAGE:
I am returning Senate Bill 11 without my signature.
This bill waives interest and penalties automatically for a taxpayer's failure to pay due taxes because of website system failure at the Department of Tax and Fee Administration or State Board of Equalization.
The Department and Board already have an existing mechanism to relieve taxpayers of unwarranted interest and penalties due to website disruption. Therefore, this bill is unnecessary.
ASSEMBLY FLOOR: 76-0, 8/24/17
AYES: Acosta, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Aguiar-Curry, Travis Allen, McCarty
1/2/18 9:56:17
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
UNFINISHED BUSINESS
Bill No: SB 11
:
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 4/19/17
AYES: McGuire, Nguyen, Beall, Hernandez, Hertzberg, Lara, Moorlach
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 37-0, 5/22/17
AYES: Allen, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, De León, Dodd, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Newman, Nguyen, Nielsen, Portantino, Roth, Skinner, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk
NO VOTE RECORDED: Anderson, Fuller, Pan
ASSEMBLY FLOOR: 76-0, 8/24/17 (Consent) - See last page for vote
SOURCE: Board of Equalization Member George Runner
DIGEST:
This bill provides that the Board of Equalization (BOE) shall not impose penalties or interest against any person for failure to pay any tax if the failure to pay is attributable to the failure or crash of BOE’s Internet Web site.
Assembly Amendments
state that this bill’s prohibition against imposing penalties or interest in these cases applies to any successor agency to BOE.
Existing law:
- Creates the five-member BOE, composed of four members elected by district and the State Controller, to equalize property tax rates and assessment practices among counties (California Constitution, Article XIII, Section 17).
- Directs BOE to administer the Sales and Use Tax, locally-imposed transactions and use taxes, several excise taxes, and more than 30 other fee programs.
- Requires taxpayers to generally pay taxes or fees to BOE before the end of the month following the close of the reporting period, which is usually the calendar quarter.
- Imposes penalties, generally 10 percent of the tax due, plus monthly, simple interest based on the tax due from the date the tax was due to the date it was paid. The same procedural requirements exist for many other BOE tax and free programs, as well as the state’s general purpose statute that guides BOE administration of several fees, the Fee Collections Procedures Law.
- Allows BOE to extend the period to file a return or pay tax for one month for good cause, provided that the taxpayer files a request within or before the extension period. If granted, taxpayers are usually still liable for the one month’s interest, but don’t pay a penalty, and can file the return and remit the tax one month late.
- Permits BOE to relieve penalties when the failure is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect.
- Allows BOE to relieve interest where the failure was due in whole or in part to an unreasonable delay by a BOE employee acting in his or her official capacity (AB 821, Takasugi, Chapter 612, Statutes of 1998). BOE can only grant relief when no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the taxpayer.
- Requires the taxpayer to file a statement with BOE under penalty of perjury to have penalties or interest waived for any of the above cases.
- Creates the California Department of Tax and Fee Administration (CDTFA), and transfers almost all non-constitutional tax administration functions from BOE to CDTFA as of July 1, 2017 (AB 102, Committee on Budget, Chapter 16, Statutes of 2017).
This bill:
- Provides that BOE shall not impose penalties or interest against any person for failure to pay any tax if the failure to pay is attributable to the failure or crash of BOE’s Internet Web site.
- States that BOE can only grant relief when no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the taxpayer.
- Makes the bill operative on either (a) July 1, 2018, or (b) prior to July 1, 2018, on the date that the Department of Technology or BOE reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. BOE must post information about this bill, including notice of the operative date, on the homepage of its Internet Web site.
- Applies this change to the Sales and Use Tax Law; Motor Vehicle Fuel Tax Law; Use Fuel Tax Law; Cigarette Tax Law; Alcoholic Beverage Tax Law; Energy Resources Surcharge Tax Law; Emergency Telephone Users Surcharge Law; Hazardous Substances Tax Law; Integrated Waste Management Fee Law; Oil Spill Prevention, Response, and Administration Fee Law; Underground Storage Tank Maintenance Fee Law; Fee Collection Procedures Law; and Diesel Fuel Tax Law.
- States that its provisions apply to any successor agency to BOE.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Assembly Appropriations Committee, “Minor and absorbable costs for BOE or its successor agency to update publications and processes. This bill is not expected to generate substantia penalty or interest revenue because a website failure already meets the current criteria for relief.”
Board of Equalization Member George Runner (source)
Board of Equalization
California Chamber of Commerce
California Society of Enrolled Agents
California Taxpayers Association
OPPOSITION: (Verified 8/25/17)
None received
ARGUMENTS IN SUPPORT: According to the author, “The California Board of Equalization (BOE) currently has the authority to grant relief of interest and penalties in the case of a BOE system failure that prevents a taxpayer from filing or paying a return, however, it is the responsibility of the taxpayer to request relief. None of the current statutory provisions provide for a proactive relief or authorize the BOE not to impose penalties or interest in the case of a BOE website failure. Now tax payers, even if delays are the fault of a BOE computer failure, must file for relief. This bill would give the BOE authority to relieve tax payers from having to jump through hoops to file for relief to waive penalties and interest in the event of another system failure.”
ASSEMBLY FLOOR: 76-0, 8/24/17
AYES: Acosta, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Aguiar-Curry, Travis Allen, McCarty
8/25/17 12:25:26
**** END ****
Date of Hearing: July 19, 2017
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
SBPCA Bill Id:SB 11
Author:(Gaines) – As Amended Ver:July 5, 2017
Policy Committee: | Revenue and Taxation | Vote: | 9 - 0 |
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill prohibits the assessment of interest and certain penalties against any person for failure to pay specified taxes, surcharges, or fees if the nonpayment is attributable to the failure of the website of State Board of Equalization (BOE) or its successor agency. The provisions of this bill become operative on either a date specified for each tax, surcharge, and fee program or upon successful implementation of the Centralized Revenue Opportunity System (CROS) for that tax, surcharge, or fee.
FISCAL EFFECT:
Minor and absorbable costs for BOE or its successor agency to update publications and processes. This bill is not expected to generate substantia penalty or interest revenue because a website failure already meets the current criteria for relief.
COMMENTS:
- Background. In 2016, the BOE experienced Web site outages on January 15, January 29, and August 1. The outages lasted from two to three- and one-half hours. During the outage on August 1, there were approximately 24,000 attempts to log in to the BOE's Web site during the outage period. Because of this single outage, the BOE received and approved 592 penalty relief requests totaling $629,073.
- CROS. The CROS project is intended to replace BOE’s legacy computer system to improve staff operations and make revenue collection more efficient. The project is currently in its development phase, with the first fee and tax programs, including the Sales & Use Tax, Cigarette Retailer License Fee, Covered Electronic Waste Recycling Fee, Lumber Products Assessment, California Tire Fee and Prepaid MTS Surcharge, expected to go live in Spring 2018. Other tax and fee programs will be included in future updates. CROS is also expected to reduce the danger of the kind of outages addressed by this bill. SB 11 aligns the provisions of this bill to the development timeline of the CROS project.
- California Department of Tax and Fee Administration (CDTFA). Effective July 1, 2017, many tax, surcharge, and fee programs are being operated through CDTFA. SB 11 clarifies that references to BOE also includes its “successor agency,” which is assumed to be CDTFA.
- Purpose. According to the author, SB 11 will give BOE and its successor agency the authority to relieve taxpayers from having to jump through hoops to obtain penalty relief in the case where computer systems are at fault for the failure to file a return.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
Date of Hearing: June 26, 2017
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Sebastian Ridley-Thomas, Chair
SBPCA Bill Id:SB 11
Author:(Gaines) – As Amended Ver:May 9, 2017
Majority vote. Fiscal committee.
SENATE VOTE: 37-0
SUBJECT: Taxes: interest: penalties
SUMMARY: Prohibits the assessment of interest and certain penalties against any person for failure to pay specified taxes, surcharges, or fees if the nonpayment is attributable to the failure of the State Board of Equalization (BOE) Web site, as provided. Specifically, this bill:
- Amends the Sales and Use Tax (SUT) Law to provide that if a person's failure to file a timely return or pay tax is attributable to the failure of the BOE's Web site resulting in an unacceptable outage period on the due date of the return or payment, specified penalties shall not be imposed and interest shall not accrue unless the person fails to file a return or pay the tax within a reasonable time after the conclusion of the outage period.
- Provides that interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the person.
- Adds similar provisions to the Motor Vehicle Fuel Tax Law, the Use Fuel Tax Law, the Cigarette and Tobacco Products Tax Law, the Alcoholic Beverage Tax Law, the Energy Resources Surcharge Law, the Emergency Telephone Users Surcharge Act, the Hazardous Substances Tax Law, the Integrated Waste Management Fee Law, the Oil Spill Response, Prevention, and Administration Fees Law, the Underground Storage Tank Maintenance Fee Law, the Fee Collection Procedures Law, and the Diesel Fuel Tax Law.
- Specifies that, for purposes of the SUT Law, these provisions shall become operative on the earlier of:
- July 1, 2018; or,
- The date the Department of Technology or the BOE reports the successful implementation of the Centralized Revenue Opportunity System (CROS) rollout phase for the tax.
- Specifies that, for purposes of the Motor Vehicle Fuel Tax Law, the Use Fuel Tax Law, the Cigarette and Tobacco Products Tax Law, the Alcoholic Beverage Tax Law, the Oil Spill Response, Prevention, and Administration Fees Law, the Underground Storage Tank Maintenance Fee Law, and the Diesel Fuel Tax Law, these provisions shall become operative on the earlier of:
- July 1, 2019; or,
- The date the Department of Technology or the BOE reports the successful implementation of the CROS rollout phase for the tax or fee.
- Specifies that, for purposes of the Energy Resources Surcharge Law, the Emergency Telephone Users Surcharge Act, the Hazardous Substances Tax Law, the Integrated Waste Management Fee Law, and the Fee Collection Procedures Law, these provisions shall become operative on the earlier of:
- July 1, 2020; or,
- The date the Department of Technology or the BOE reports the successful implementation of the CROS rollout phase for the surcharge, tax, or fee.
EXISTING LAW:
- Requires the BOE to administer various taxes, surcharges, and fees, including:
- The SUT Law;
- The Motor Vehicle Fuel Tax Law;
- The Use Fuel Tax Law;
- The Cigarette and Tobacco Products Tax Law;
- The Alcoholic Beverage Tax Law;
- The Energy Resources Surcharge Law;
- The Emergency Telephone Users Surcharge Act;
- The Hazardous Substances Tax Law;
- The Integrated Waste Management Fee Law;
- The Oil Spill Response, Prevention, and Administration Fees Law;
- The Underground Storage Tank Maintenance Fee Law;
- The Fee Collection Procedures Law; and,
- The Diesel Fuel Tax Law.
- Requires the payment of penalties and interest for a failure to pay taxes on time, from the date on which those amounts became due and payable to the state until the date of payment.
FISCAL EFFECT: The BOE estimates no revenue impact "since penalty or interest assessed during a Web site failure meets the current criteria for relief."
COMMENTS:
- The author has provided the following statement in support of this bill:
The California Board of Equalization (BOE) currently has the authority to grant relief of interest and penalties in the case of a BOE system failure that prevents a taxpayer from filing or paying a return, however, it is the responsibility of the taxpayer to request relief. None of the current statutory provisions provides for a proactive relief or authorizes the BOE not to impose penalties or interest in the case of a BOE website failure. Now taxpayers, even if delays are the fault of a BOE computer failure, must file for relief. This bill would give the BOE authority to relieve taxpayers from having to jump through hoops to file for relief to waive penalties and interest in the event of another system failure.
- This bill is supported by the BOE, which notes the following:
- Reduces taxpayer burden: "During a previous BOE website outage that occurred on the return due date, taxpayers filed returns and paid taxes due after service resumed, but were required to file a formal request to obtain penalty and interest relief. This bill is a proactive measure to obviate the need for a taxpayer to file a formal request for relief from penalty and interest after a BOE website outage."
- Eases tax administration: "By prohibiting the imposition of penalty and interest when the return is filed subsequent to an outage, the bill would save the BOE the time and expense associated with processing relief requests."
- The BOE notes the following in its staff analysis of this bill:
- The bill is intended to provide proactive relief from penalties and interest: "This bill specifies that the BOE shall not impose interest or certain penalties if the BOE's website failure results in a taxpayer being unable to timely file or pay their tax. If a BOE website failure occurs on the return due date and taxpayers are unable to file or pay their tax, then penalty and interest will not be imposed, and the taxpayer will not be required to file for specific relief with the BOE, unless the taxpayer fails to file or pay their tax within a reasonable time after the conclusion of the outage period.
However, if the BOE website failure happens before or after the filing date, then penalty and interest will be imposed. In general, quarterly tax returns are due 30 days after the end of the quarterly period. For example, if a BOE website failure occurs five days before the return due date, the taxpayer would still have time to file and pay taxes without any penalties or interest. If a BOE website failure occurs five days after the return due date, and the taxpayer is unable to file and pay tax, penalties and interest would already have accrued for filing a late return."
- Regulations will be needed to determine time frames: "The bill does not define 'unacceptable outage period on the due date' or 'within a reasonable time after the conclusion of the outage period.' BOE staff would work with stakeholders through the regulatory process to address the duration of the 'unacceptable outage period' of the BOE website, along with the corresponding 'reasonable time' that taxpayers will have to file returns or pay taxes after website services have been restored."
- Committee Staff Comments:
- General background: Under the SUT Law, tax payments made after the due date are subject to interest and penalties.[1] (Revenue and Taxation Code (R&TC) Section 6591.) In 1998, the BOE sponsored legislation authorizing relief from interest when a late payment is caused by an unreasonable error or delay by a BOE employee acting in his or her official capacity. (R&TC Section 6593.5.) Any person seeking such relief must file with the BOE a statement under penalty of perjury setting forth the facts on which the claim for relief is based. (Id.) Additionally, the BOE has the authority to relieve a taxpayer of penalties when the failure to make a timely return or payment was due to reasonable cause and circumstances beyond the person's control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect. Again, any person seeking such relief must file with the BOE a statement under penalty of perjury. (R&TC Section 6592.)
- What would this bill do? If a person's failure to file a timely return or pay amounts due is attributable to a failure of the BOE Web site that results in an "unacceptable outage period" on the due date, this bill automatically waives interest and specified penalties. To qualify for this automatic relief, however, that person must file a return or pay the amount owed within a "reasonable time" after the outage period. Thus, a taxpayer would no longer have to file a statement requesting relief. The BOE notes that, by prohibiting the imposition of penalties and interest when a return or payment is submitted following an outage, this bill would save the BOE the time and expense associated with processing relief requests.
This bill traces its origins to a number of BOE Web site outages that occurred last year. Specifically, in 2016, the BOE experienced Web site outages on January 15, January 29, and August 1. The outages lasted from two to three- and one-half hours. During the outage on August 1, there were approximately 24,000 attempts to log in to the BOE's Web site during the outage period. Because of this single outage, the BOE received and approved 592 penalty relief requests totaling $629,073. The author points out that the California Department of Technology, which maintains BOE's Web site, has taken steps to reduce the risk of future outages. Nevertheless, there are obviously no guarantees that such an outage will not occur again.
- Undefined terms: As noted above, this bill's automatic interest and penalty relief only applies if a BOE Web site outage results in an "unacceptable outage period" on the due date. This bill, however, does not define what constitutes an "unacceptable outage period". Would 15 minutes suffice? If not, would one hour be considered unacceptable? In addition, this bill's relief provisions would only apply if a taxpayer files a return or pays amounts owed within a "reasonable time" after the outage. Again, this bill does not provide a definition for this term. The Committee may wish to consider whether legislative guidance in defining these terms is warranted or whether greater definitional precision should be provided through implementing regulations.
- Changes underway: On June 15, 2017, the Legislature passed AB 102 (Committee on Budget) as part of the annual budget agreement. Among other things, AB 102 transfers to a newly established California Department of Tax and Fee Administration (Department) the vast majority of the BOE's current responsibilities for tax and fee administration. While the BOE would maintain its constitutional authority to assess and collect excise taxes on the manufacture, importation, and sale of alcoholic beverages, AB 102 would transfer all other tax and fee programs included in this bill to the Department, effective July 1, 2017. Assuming the Governor signs AB 102 into law, the author may wish to take technical amendments reflecting the new administrative functions of the Department.
- Suggested technical amendments: Committee staff suggests adoption of the following technical amendments:
- On page 2, line 13, insert "file or" before "pay";
- On page 3, line 11, insert "file or" before "pay";
- On page 3, line 33, insert "file or" before "pay";
- On page 4, line 15, insert "file or" before "pay";
- On page 4, line 37, insert "file or" before "pay";
- On page 5, line 20, insert "file or" before "pay";
- On page 6, line 4, insert "file or" before "pay";
- On page 6, line 26, insert "file or" before "pay";
- On page 7, line 9, insert "file or" before "pay";
- On page 7, line 33, insert "file or" before "pay";
- On page 8, line 16, insert "file or" before "pay";
- On page 8, line 38, insert "file or" before "pay"; and,
- On page 9, line 21, insert "file or" before "pay".
REGISTERED SUPPORT / OPPOSITION:
Support
California Chamber of Commerce
California Taxpayers Association
State Board of Equalization
State Board of Equalization Member, First District
Opposition
None on file
Analysis Prepared by: M. David Ruff / REV. & TAX. / (916) 319-2098
Similar provisions apply to the numerous other tax and fee programs that the BOE currently administers. ↑
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
THIRD READING
Bill No: SB 11
:
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 4/19/17
AYES: McGuire, Nguyen, Beall, Hernandez, Hertzberg, Lara, Moorlach
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SOURCE: Board of Equalization Member George Runner
DIGEST:
This bill provides that the Board of Equalization (BOE) shall not impose penalties or interest against any person for failure to pay any tax if the failure to pay is attributable to the failure or crash of BOE’s Internet Web site.
Existing law:
- Creates the five-member BOE, composed of four members elected by district and the State Controller, to equalize property tax rates and assessment practices among counties (California Constitution, Article XIII, Section 17).
- Directs BOE to administer the Sales and Use Tax, locally-imposed transactions and use taxes, several excise taxes, and more than 30 other fee programs.
- Requires taxpayers to generally pay taxes or fees to BOE before the end of the month following the close of the reporting period, which is usually the calendar quarter.
- Imposes penalties, generally 10 percent of the tax due, plus monthly, simple interest based on the tax due from the date the tax was due to the date it was paid. The same procedural requirements exist for many other BOE tax and free programs, as well as the state’s general purpose statute that guides BOE administration of several fees, the Fee Collections Procedures Law.
- Allows BOE to extend the period to file a return or pay tax for one month for good cause, provided that the taxpayer files a request within or before the extension period. If granted, taxpayers are usually still liable for the one month’s interest, but don’t pay a penalty, and can file the return and remit the tax one month late.
- Permits BOE to relieve penalties when the failure is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect.
- Allows BOE to relieve interest where the failure was due in whole or in part to an unreasonable delay by a BOE employee acting in his or her official capacity (AB 821, Takasugi, Chapter 612, Statutes of 1998). BOE can only grant relief when no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the taxpayer.
- Requires the taxpayer to file a statement with BOE under penalty of perjury to have penalties or interest waived for any of the above cases.
This bill:
- Provides that BOE shall not impose penalties or interest against any person for failure to pay any tax if the failure to pay is attributable to the failure or crash of BOE’s Internet Web site.
- States that BOE can only grant relief when no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the taxpayer.
- Makes the bill operative on either (a) July 1, 2018, or (b) prior to July 1, 2018, on the date that the Department of Technology or BOE reports the successful implementation of the Centralized Revenue Opportunity System rollout phase for the tax imposed pursuant to this part, whichever occurs first. BOE must post information about this bill, including notice of the operative date, on the homepage of its Internet Web site.
- Applies this change to the Sales and Use Tax Law; Motor Vehicle Fuel Tax Law; Use Fuel Tax Law; Cigarette Tax Law; Alcoholic Beverage Tax Law; Energy Resources Surcharge Tax Law; Emergency Telephone Users Surcharge Law; Hazardous Substances Tax Law; Integrated Waste Management Fee Law; Oil Spill Prevention, Response, and Administration Fee Law; Underground Storage Tank Maintenance Fee Law; Fee Collection Procedures Law; and Diesel Fuel Tax Law.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Board of Equalization Member George Runner (source)
Board of Equalization
California Chamber of Commerce
California Society of Enrolled Agents
California Taxpayers Association
OPPOSITION: (Verified 5/16/17)
None received
ARGUMENTS IN SUPPORT: According to the author, “The California Board of Equalization (BOE) currently has the authority to grant relief of interest and penalties in the case of a BOE system failure that prevents a taxpayer from filing or paying a return, however, it is the responsibility of the taxpayer to request relief. None of the current statutory provisions provide for a proactive relief or authorize the BOE not to impose penalties or interest in the case of a BOE website failure. Now tax payers, even if delays are the fault of a BOE computer failure, must file for relief. This bill would give the BOE authority to relieve tax payers from having to jump through hoops to file for relief to waive penalties and interest in the event of another system failure.”
5/16/17 16:15:54
**** END ****
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Mike McGuire, Chair
2017 - 2018 Regular
Bill No: | SB 11 | Hearing Date: | 4/19/17 |
Author: | Gaines | Tax Levy: | No |
Version: | 4/17/17 | Fiscal: | Yes |
Consultant: | Grinnell | ||
Sales and use taxes: interest: penalties
Provides that BOE shall not impose penalties or interest against any person for failure to pay any tax if the failure to pay is attributable to the failure or crash of BOE’s internet website.
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 property tax 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.
Taxpayers must generally pay taxes or fees to BOE before the end of the month following the close of the reporting period, which is usually the calendar quarter. If not, state law imposes penalties, generally 10 percent of the tax due, plus monthly, simple interest based on the tax due from the date the tax was due to the date it was paid. In addition to the Sales and Use Tax, the same procedural requirements exist for many other BOE tax and free programs, as well as the state’s general purpose statute that guides BOE administration of several fees, the Fee Collections Procedures Law.
All of the above listed laws authorize BOE to extend the period to file a return or pay tax for one month for good cause, provided that the taxpayer files a request within or before the extension period. If granted, taxpayers are usually still liable for the one month’s interest, but don’t pay a penalty, and can file the return and remit the tax one month late. BOE can relieve penalties when the failure is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect. When the failure is due to a disaster, BOE can also relieve interest when it finds the taxpayer’s failure to file the return or pay the tax was due to disaster, and occurred notwithstanding the exercise of ordinary care in the absence of willful neglect. Additionally, BOE may relieve interest where the failure was due in whole or in part to an unreasonable delay by a BOE employee acting in his or her official capacity (AB 821, Takasugi, 1998). However, the taxpayer must file a statement with BOE under penalty of perjury to have penalties of interest waived for any of the above cases. BOE Member George Runner wants BOE to automatically waive penalties for failure to pay taxes due to the failure or crash of BOE’s internet website.
Proposed Law
Senate Bill 11 provides that BOE shall not impose penalties or interest against any person for failure to pay any tax if the failure to pay is attributable to the failure or crash of BOE’s internet website. The measure makes the change to the Sales and Use Tax Law; Motor Vehicle Fuel Tax Law; Use Fuel Tax Law; Cigarette Tax Law; Alcoholic Beverage Tax Law; Energy Resources Surcharge Tax Law; Emergency Telephone Users Surcharge Law; Hazardous Substances Tax Law; Integrated Waste Management Fee Law; Oil Spill Prevention, Response, and Administration Fee Law; Underground Storage Tank Maintenance Fee Law; Fee Collection Procedures Law; and Diesel Fuel Tax Law.
State Revenue Impact
BOE states that the bill has no revenue impact because website failures have been limited in occurrences and duration. BOE adds that any penalties or interest assessed under current law meet the criteria for relief anyway, and the measure simply eliminates the requirement for taxpayers to request relief.
Comments
1. Purpose of the bill. According to the author, “The California Board of Equalization (BOE) currently has the authority to grant relief of interest and penalties in the case of a BOE system failure that prevents a taxpayer from filing or paying a return, however, it is the responsibility of the taxpayer to request relief. None of the current statutory provisions provide for a proactive relief or authorize the BOE not to impose penalties or interest in the case of a BOE website failure. Now tax payers, even if delays are the fault of a BOE computer failure, must file for relief. This bill would give the BOE authority to relieve tax payers from having to jump through hoops to file for relief to waive penalties and interest in the event of another system failure.”
2. Automatic, not manual. In 2016, BOE had three website outages: January 15th, 29th, and August 1st, the last of which was the due date for returns for the second quarter. The August 1st outage resulted in 24,000 log-in attempts, and BOE received and granted 592 relief requests. SB 11 would provide automatic penalty and interest relief so taxpayers would no longer have to affirmatively apply.
3. Make it easy. SB 11 follows several other enacted bills sponsored by BOE intended to ease taxpayer compliance or tax administration for the benefit of taxpayers, including:
- Extend the offers in compromise program (SB 1548, Wyland, 2012).
- Extend to special tax programs the ability of a taxpayer to file a claim with BOE for reimbursement of bank charges resulting from erroneous BOE actions (SB 442, Wyland, 2013).
- Authorize the managed audit program (AB 2009, Weber, 2014).
- Increase the amount BOE’s Taxpayer Advocate can return to taxpayers from $1,500 to $2,300 monthly (AB 1277, Brough, 2015).
- Allows BOE to extend from one month to three months filing deadlines for taxpayers affected by disasters (AB 1559, Dodd, 2016).
- Allows taxpayers making installment payments on an outstanding liability on taxes administered by BOE to file a single claim for refund to cover all prior overpayments and all subsequent overpayments (AB 1856, Dababneh, 2016).
- Reenacts BOE’s authority to calculate interest on a daily, not monthly, basis for tax and fee payments made one business day late (AB 2201, Brough, 2016).
4. Technicals. To ensure that taxpayers do not misuse the bill’s authority for BOE to automatically grant penalty and interest relief, committee staff recommends importing language from current law’s relieving interest when the failure was due in whole or in part to an unreasonable delay by a BOE employee acting in his or her official capacity.
- In all sections of the bill, renumber current section (a) and add “(b) For purposes of this section, interest or penalty relief shall only be granted if no significant aspect of the failure to pay is attributable to an act of, or a failure to act by, the taxpayer.”
Support and Opposition
(4/15/17)
Support: BOE Member George Runner, State Board of Equalization, California Chamber of Commerce, California Society of Enrolled Agents, California Taxpayers Association,
Opposition: Unknown.
-- END --
Discussed in Hearing
1MIN
Assembly Standing Committee on Revenue and Taxation
3MIN
Senate Floor
Bill Author
Bill Co-Author(s):