Amended in Senate April 16, 2013

Senate BillNo. 442


Introduced by Senator Wyland

February 21, 2013


An act to amend Sections 7096, 9274, 30459.4, 32474, 40214, 41174, 43525, 45870, 46625, 50156.14, 55335, and 60633.1 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SB 442, as amended, Wyland. State Board of Equalization: erroneous charges.

Existing law requires the State Board of Equalization to administer the Sales and Use Tax Law, Use Fuel Tax Law, Cigarette and Tobacco Products Tax Law, Alcoholic Beverage Tax Law, Energy Resources Surcharge Law, Emergency Telephone Users Surcharge Act, Hazardous Substances Tax Law, Integrated Waste Management Fee Law, Oil Spill Response, Prevention, and Administration Fees Law, Underground Storage Tank Maintenance Fee Law, Fee Collection Procedures Law, and Diesel Fuel Tax Law, and authorizes the board to undertake collection action on delinquent accounts, including issuing a levy or notice to withhold. Under existing sales and use tax laws, a taxpayerbegin insert and a feepayerend insert may file a claim with the board for reimbursement of bank charges or any other reasonable 3rd-party check charge fees incurred by the taxpayerbegin insert or the feepayerend insert as a direct result of an erroneous levy or notice to withhold by the board or erroneous processing or collection action within 90 days of the date of the board action. Under the other laws, a taxpayerbegin insert and a feepayerend insert may only file a claim for those charges or fees incurred as a direct result of an erroneous levy or notice to withhold.

This bill would extend to those other laws the authorization for a taxpayerbegin insert and a feepayerend insert to also file a reimbursement claim with the board for bank charges and other reasonable 3rd-party check charge fees incurred as a direct result of an erroneous processing action or erroneous collection action by the board withinbegin delete 90-daysend deletebegin insert 90 daysend insert of the board action.begin delete The bill would authorize the board to waive the 90 day filing period for reasonable cause.end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 7096 of the Revenue and Taxation Code
2 is amended to read:

3

7096.  

(a) A taxpayer may file a claim with the board for
4reimbursement of bank charges and any other reasonable
5third-party check charge fees incurred by the taxpayer as the direct
6result of an erroneous levy or notice to withhold, erroneous
7processing action, or erroneous collection action by the board.
8Bank and third-party charges include a financial institution’s or
9third party’s customary charge for complying with the levy or
10notice to withhold instructions and reasonable charges for
11overdrafts that are a direct consequence of the erroneous levy or
12notice to withhold, erroneous processing action, or erroneous
13collection action. The charges are those paid by the taxpayer and
14not waived or reimbursed by the financial institution or third party.
15Each claimant applying for reimbursement shall file a claim with
16the board that shall be in the form as may be prescribed by the
17board. In order for the board to grant a claim, the board shall
18determine that both of the following conditions have been satisfied:

19(1) The erroneous levy or notice to withhold, erroneous
20processing action, or erroneous collection action was caused by
21board error.

22(2) Prior to the erroneous levy or notice to withhold, erroneous
23processing action, or erroneous collection action, the taxpayer
24responded to all contacts by the board and provided the board with
25any requested information or documentation sufficient to establish
26the taxpayer’s position. This provision may be waived by the board
27for reasonable cause.

P3    1(b) Claims pursuant to this section shall be filed within 90 days
2from the date begin delete of the erroneous levy or notice to withhold, erroneous
3processing action, or erroneous collection action. This provision
4may be waived by the board for reasonable causeend delete
begin insert the bank and
5third-party charges were incurred by the taxpayerend insert
. Within 30 days
6from the date the claim is received, the board shall respond to the
7claim. If the board denies the claim, the taxpayer shall be notified
8in writing of the reason or reasons for the denial of the claim.

9

SEC. 2.  

Section 9274 of the Revenue and Taxation Code is
10amended to read:

11

9274.  

(a) A taxpayer may file a claim with the board for
12reimbursement of bank charges and any other reasonable
13third-party check charge fees incurred by the taxpayer as the direct
14result of an erroneous levy or notice to withhold, erroneous
15processing action, or erroneous collection action by the board.
16Bank and third-party charges include a financial institution’s or
17third party’s customary charge for complying with the levy or
18notice to withhold instructions and reasonable charges for
19overdrafts that are a direct consequence of the erroneous levy or
20notice to withhold, erroneous processing action, or erroneous
21collection action. The charges are those paid by the taxpayer and
22not waived for reimbursement by the financial institution or third
23party. Each claimant applying for reimbursement shall file a claim
24with the board that shall be in a form as may be prescribed by the
25board. In order for the board to grant a claim, the board shall
26determine that both of the following conditions have been satisfied:

27(1) The erroneous levy or notice to withhold was caused by
28board error, erroneous processing action, or erroneous collection
29action.

30(2) Prior to the erroneous levy or notice to withhold, erroneous
31processing action, or erroneous collection action, the taxpayer
32responded to all contacts by the board and provided the board with
33any requested information or documentation sufficient to establish
34the taxpayer’s position. This provision may be waived by the board
35for reasonable cause.

36(b) Claims pursuant to this section shall be filed within 90 days
37from the date begin delete of the erroneous levy or notice to withhold, erroneous
38processing action, or erroneous collection action. This provision
39may be waived by the board for reasonable causeend delete
begin insert the bank and
40third-party charges were incurred by the taxpayerend insert
. Within 30 days
P4    1from the date the claim is received, the board shall respond to the
2claim. If the board denies the claim, the taxpayer shall be notified
3in writing of the reason or reasons for the denial of the claim.

4

SEC. 3.  

Section 30459.4 of the Revenue and Taxation Code
5 is amended to read:

6

30459.4.  

(a) A taxpayer may file a claim with the board for
7reimbursement of bank charges and any other reasonable
8third-party check charge fees incurred by the taxpayer as the direct
9result of an erroneous levy or notice to withhold, erroneous
10processing action, or erroneous collection action by the board.
11Bank and third-party charges include a financial institution’s or
12third party’s customary charge for complying with the levy or
13notice to withhold instructions and reasonable charges for
14overdrafts that are a direct consequence of the erroneous levy or
15notice to withhold, erroneous processing action, or erroneous
16collection action. The charges are those paid by the taxpayer and
17not waived for reimbursement by the financial institution or third
18party. Each claimant applying for reimbursement shall file a claim
19with the board that shall be in a form as may be prescribed by the
20board. In order for the board to grant a claim, the board shall
21determine that both of the following conditions have been satisfied:

22(1) The erroneous levy or notice to withhold, erroneous
23processing action, or erroneous collection action was caused by
24board error.

25(2) Prior to the erroneous levy or notice to withhold, erroneous
26processing action, or erroneous collection action, the taxpayer
27responded to all contacts by the board and provided the board with
28any requested information or documentation sufficient to establish
29the taxpayer’s position. This provision may be waived by the board
30for reasonable cause.

31(b) Claims pursuant to this section shall be filed within 90 days
32from the datebegin delete of the erroneous levy or notice to withhold, erroneous
33processing action, or erroneous collection action. This provision
34may be waived by the board for reasonable causeend delete
begin insert the bank and
35third-party charges were incurred by the taxpayerend insert
. Within 30 days
36from the date the claim is received, the board shall respond to the
37claim. If the board denies the claim, the taxpayer shall be notified
38in writing of the reason or reasons for the denial of the claim.

39

SEC. 4.  

Section 32474 of the Revenue and Taxation Code is
40amended to read:

P5    1

32474.  

(a) A taxpayer may file a claim with the board for
2reimbursement of bank charges and any other reasonable
3third-party check charge fees incurred by the taxpayer as the direct
4result of an erroneous levy or notice to withhold, erroneous
5processing action, or erroneous collection action by the board.
6Bank and third-party charges include a financial institution’s or
7third party’s customary charge for complying with the levy or
8notice to withhold instructions and reasonable charges for
9overdrafts that are a direct consequence of the erroneous levy or
10notice to withhold, erroneous processing action, or erroneous
11collection action. The charges are those paid by the taxpayer and
12not waived for reimbursement by the financial institution or third
13party. Each claimant applying for reimbursement shall file a claim
14with the board that shall be in a form as may be prescribed by the
15board. In order for the board to grant a claim, the board shall
16determine that both of the following conditions have been satisfied:

17(1) The erroneous levy or notice to withhold, erroneous
18processing action, or erroneous collection action was caused by
19board error.

20(2) Prior to the erroneous levy or notice to withhold, erroneous
21processing action, or erroneous collection action, the taxpayer
22responded to all contacts by the board and provided the board with
23any requested information or documentation sufficient to establish
24the taxpayer’s position. This provision may be waived by the board
25for reasonable cause.

26(b) Claims pursuant to this section shall be filed within 90 days
27from the datebegin delete of the erroneous levy or notice to withhold, erroneous
28processing action, or erroneous collection action. This provision
29may be waived by the board for reasonable causeend delete
begin insert the bank and
30third-party charges were incurred by the taxpayerend insert
. Within 30 days
31from the date the claim is received, the board shall respond to the
32claim. If the board denies the claim, the taxpayer shall be notified
33in writing of the reason or reasons for the denial of the claim.

34

SEC. 5.  

Section 40214 of the Revenue and Taxation Code is
35amended to read:

36

40214.  

(a) A taxpayer may file a claim with the board for
37reimbursement of bank charges and any other reasonable
38third-party check charge fees incurred by the taxpayer as the direct
39result of an erroneous levy or notice to withhold, erroneous
40processing action, or erroneous collection action by the board.
P6    1Bank and third-party charges include a financial institution’s or
2third party’s customary charge for complying with the levy or
3notice to withhold instructions and reasonable charges for
4overdrafts that are a direct consequence of the erroneous levy or
5notice to withhold, erroneous processing action, or erroneous
6collection action. The charges are those paid by the taxpayer and
7not waived for reimbursement by the financial institution or third
8party. Each claimant applying for reimbursement shall file a claim
9with the board that shall be in a form as may be prescribed by the
10board. In order for the board to grant a claim, the board shall
11determine that both of the following conditions have been satisfied:

12(1) The erroneous levy or notice to withhold, erroneous
13processing action, or erroneous collection action was caused by
14board error.

15(2) Prior to the erroneous levy or notice to withhold, erroneous
16processing action, or erroneous collection action, the taxpayer
17responded to all contacts by the board and provided the board with
18any requested information or documentation sufficient to establish
19the taxpayer’s position. This provision may be waived by the board
20for reasonable cause.

21(b) Claims pursuant to this section shall be filed within 90 days
22from the datebegin delete of the erroneous levy or notice to withhold, erroneous
23processing action, or erroneous collection action. This provision
24may be waived by the board for reasonable causeend delete
begin insert the bank and
25third-party charges were incurred by the taxpayerend insert
. Within 30 days
26from the date the claim is received, the board shall respond to the
27claim. If the board denies the claim, the taxpayer shall be notified
28in writing of the reason or reasons for the denial of the claim.

29

SEC. 6.  

Section 41174 of the Revenue and Taxation Code is
30amended to read:

31

41174.  

(a) A taxpayer may file a claim with the board for
32reimbursement of bank charges and any other reasonable
33third-party check charge fees incurred by the taxpayer as the direct
34result of an erroneous levy or notice to withhold, erroneous
35processing action, or erroneous collection action by the board.
36Bank and third-party charges include a financial institution’s or
37third party’s customary charge for complying with the levy or
38notice to withhold instructions and reasonable charges for
39overdrafts that are a direct consequence of the erroneous levy or
40notice to withhold, erroneous processing action, or erroneous
P7    1collection action. The charges are those paid by the taxpayer and
2not waived for reimbursement by the financial institution or third
3party. Each claimant applying for reimbursement shall file a claim
4with the board that shall be in a form as may be prescribed by the
5board. In order for the board to grant a claim, the board shall
6determine that both of the following conditions have been satisfied:

7(1) The erroneous levy or notice to withhold, erroneous
8processing action, or erroneous collection action was caused by
9board error.

10(2) Prior to the erroneous levy or notice to withhold, erroneous
11processing action, or erroneous collection action, the taxpayer
12responded to all contacts by the board and provided the board with
13any requested information or documentation sufficient to establish
14the taxpayer’s position. This provision may be waived by the board
15for reasonable cause.

16(b) Claims pursuant to this section shall be filed within 90 days
17from the datebegin delete of the erroneous levy or notice to withhold, erroneous
18processing action, or erroneous collection action. This provision
19may be waived by the board for reasonable causeend delete
begin insert the bank and
20third-party charges were incurred by the taxpayerend insert
. Within 30 days
21from the date the claim is received, the board shall respond to the
22claim. If the board denies the claim, the taxpayer shall be notified
23in writing of the reason or reasons for the denial of the claim.

24

SEC. 7.  

Section 43525 of the Revenue and Taxation Code is
25amended to read:

26

43525.  

(a) A taxpayer may file a claim with the board for
27reimbursement of bank charges and any other reasonable
28third-party check charge fees incurred by the taxpayer as the direct
29result of an erroneous levy or notice to withhold, erroneous
30processing action, or erroneous collection action by the board.
31Bank and third-party charges include a financial institution’s or
32third party’s customary charge for complying with the levy or
33notice to withhold instructions and reasonable charges for
34overdrafts that are a direct consequence of the erroneous levy or
35notice to withhold, erroneous processing action, or erroneous
36collection action. The charges are those paid by the taxpayer and
37not waived for reimbursement by the financial institution or third
38party. Each claimant applying for reimbursement shall file a claim
39with the board that shall be in a form as may be prescribed by the
P8    1board. In order for the board to grant a claim, the board shall
2determine that both of the following conditions have been satisfied:

3(1) The erroneous levy or notice to withhold, erroneous
4processing action, or erroneous collection action was caused by
5board error.

6(2) Prior to the erroneous levy or notice to withhold, erroneous
7processing action, or erroneous collection action, the taxpayer
8responded to all contacts by the board and provided the board with
9any requested information or documentation sufficient to establish
10the taxpayer’s position. This provision may be waived by the board
11for reasonable cause.

12(b) Claims pursuant to this section shall be filed within 90 days
13from the datebegin delete of the erroneous levy or notice to withhold, erroneous
14processing action, or erroneous collection action. This provision
15may be waived by the board for reasonable causeend delete
begin insert the bank and
16third-party charges were incurred by the taxpayerend insert
. Within 30 days
17from the date the claim is received, the board shall respond to the
18claim. If the board denies the claim, the taxpayer shall be notified
19in writing of the reason or reasons for the denial of the claim.

20

SEC. 8.  

Section 45870 of the Revenue and Taxation Code is
21amended to read:

22

45870.  

(a) A feepayer may file a claim with the board for
23reimbursement of bank charges and any other reasonable
24third-party check charge fees incurred by thebegin delete taxpayerend deletebegin insert feepayerend insert as
25the direct result of an erroneous levy or notice to withhold,
26erroneous processing action, or erroneous collection action by the
27board. Bank and third-party charges include a financial institution’s
28or third party’s customary charge for complying with the levy or
29notice to withhold instructions and reasonable charges for
30overdrafts that are a direct consequence of the erroneous levy or
31notice to withhold, erroneous processing action, or erroneous
32collection action. The charges are those paid by the feepayer and
33not waived for reimbursement by the financial institution or third
34party. Each claimant applying for reimbursement shall file a claim
35with the board that shall be in a form as may be prescribed by the
36board. In order for the board to grant a claim, the board shall
37determine that both of the following conditions have been satisfied:

38(1) The erroneous levy or notice to withhold, erroneous
39processing action, or erroneous collection action was caused by
40board error.

P9    1(2) Prior to the erroneous levy or notice to withhold, erroneous
2processing action, or erroneous collection action, the feepayer
3responded to all contacts by the board and provided the board with
4any requested information or documentation sufficient to establish
5the feepayer’s position. This provision may be waived by the board
6for reasonable cause.

7(b) Claims pursuant to this section shall be filed within 90 days
8from the datebegin delete of the erroneous levy or notice to withhold, erroneous
9processing action, or erroneous collection action. This provision
10may be waived by the board for reasonable causeend delete
begin insert the bank and
11third-party charges were incurred by the feepayerend insert
. Within 30 days
12from the date the claim is received, the board shall respond to the
13claim. If the board denies the claim, the feepayer shall be notified
14in writing of the reason or reasons for the denial of the claim.

15

SEC. 9.  

Section 46625 of the Revenue and Taxation Code is
16amended to read:

17

46625.  

(a) A feepayer may file a claim with the board for
18reimbursement of bank charges and any other reasonable
19third-party check charge fees that are incurred by the feepayer as
20the direct result of an erroneous levy or notice to withhold,
21erroneous processing action, or erroneous collection action by the
22board. Bank and third-party charges include a financial institution’s
23or third party’s customary charge for complying with either a levy
24or instructions in a notice to withhold, and reasonable charges for
25overdrafts that are a direct consequence of the erroneous levy or
26notice to withhold, erroneous processing action, or erroneous
27collection action. Bank charges include only those charges that
28are paid by the feepayer and not waived for reimbursement by the
29financial institution or third party. Each claimant applying for
30reimbursement pursuant to this section shall file a claim with the
31board that shall be in the form as may be prescribed by the board.
32The board shall not grant a claim unless it determines that both of
33the following conditions have been satisfied:

34(1) The erroneous levy or notice to withhold, erroneous
35processing action, or erroneous collection action resulted from
36board error.

37(2) Prior to the erroneous levy or notice to withhold, erroneous
38processing action, or erroneous collection action, the feepayer
39responded to all contacts by the board and provided the board with
40any requested information or documentation that was sufficient to
P10   1establish the feepayer’s position. The requirement of this paragraph
2may be waived by the board for reasonable cause.

3(b) Claims pursuant to this section shall be filed within 90 days
4from the datebegin delete of the erroneous levy or notice to withhold, erroneous
5processing action, or erroneous collection action. This provision
6may be waived by the board for reasonable causeend delete
begin insert the bank and
7third-party charges were incurred by the feepayerend insert
. The board shall
8respond to a claim filed pursuant to this section within 30 days of
9receipt. If the board denies a claim, thebegin delete taxpayerend deletebegin insert feepayerend insert shall be
10notified in writing of the reason or reasons for denial.

11

SEC. 10.  

Section 50156.14 of the Revenue and Taxation Code
12 is amended to read:

13

50156.14.  

(a) A feepayer may file a claim with the board for
14reimbursement of bank charges and any other reasonable
15third-party check charge fees incurred by thebegin delete taxpayerend deletebegin insert feepayerend insert as
16the direct result of an erroneous levy or notice to withhold,
17erroneous processing action, or erroneous collection action by the
18board. Bank and third-party charges include a financial institution’s
19or third party’s customary charge for complying with the levy or
20notice to withhold instructions and reasonable charges for
21overdrafts that are a direct consequence of the erroneous levy or
22notice to withhold, erroneous processing action, or erroneous
23collection action. The charges are those paid to the feepayer and
24not waived for reimbursement by the financial institution or third
25party. Each claimant applying for reimbursement shall file a claim
26with the board that shall be in a form as may be prescribed by the
27board. In order for the board to grant a claim, the board shall
28determine that both of the following conditions have been satisfied:

29(1) The erroneous levy or notice to withhold, erroneous
30processing action, or erroneous collection action was caused by
31board error.

32(2) Prior to the erroneous levy or notice to withhold, erroneous
33processing action, or erroneous collection action, the feepayer
34responded to all contacts by the board and provided the board with
35any requested information or documentation sufficient to establish
36the feepayer’s position. This provision may be waived by the board
37for reasonable cause.

38(b) Claims pursuant to this section shall be filed within 90 days
39from the datebegin delete of the erroneous levy or notice to withhold, erroneous
40processing action, or erroneous collection action. This provision
P11   1may be waived by the board for reasonable causeend delete
begin insert the bank and
2third-party charges were incurred by the feepayerend insert
. Within 30 days
3from the date the claim is received, the board shall respond to the
4claim. If the board denies the claim, the feepayer shall be notified
5in writing of the reason or reasons for the denial of the claim.

6

SEC. 11.  

Section 55335 of the Revenue and Taxation Code is
7amended to read:

8

55335.  

(a) A taxpayer may file a claim with the board for
9reimbursement of bank charges and any other reasonable
10third-party check charge fees incurred by the taxpayer as the direct
11result of an erroneous levy or notice to withhold, erroneous
12processing action, or erroneous collection action by the board.
13Bank and third-party charges include a financial institution’s or
14third party’s customary charge for complying with the levy or
15notice to withhold instructions and reasonable charges for
16overdrafts that are a direct consequence of the erroneous levy or
17notice to withhold, erroneous processing action, or erroneous
18collection action. The charges are those paid by the taxpayer and
19not waived for reimbursement by the financial institution or third
20party. Each claimant applying for reimbursement shall file a claim
21with the board that shall be in a form as may be prescribed by the
22board. In order for the board to grant a claim, the board shall
23determine that both of the following conditions have been satisfied:

24(1) The erroneous levy or notice to withhold, erroneous
25processing action, or erroneous collection action was caused by
26board error.

27(2) Prior to the erroneous levy or notice to withhold, erroneous
28processing action, or erroneous collection action, the taxpayer
29responded to all contacts by the board and provided the board with
30any requested information or documentation sufficient to establish
31the taxpayer’s position. This provision may be waived by the board
32for reasonable cause.

33(b) Claims pursuant to this section shall be filed within 90 days
34from the datebegin delete of the erroneous levy or notice to withhold, erroneous
35processing action, or erroneous collection action. This provision
36may be waived by the board for reasonable causeend delete
begin insert the bank and
37third-party charges were incurred by the taxpayerend insert
. Within 30 days
38from the date the claim is received, the board shall respond to the
39claim. If the board denies the claim, the taxpayer shall be notified
40in writing of the reason or reasons for the denial of the claim.

P12   1

SEC. 12.  

Section 60633.1 of the Revenue and Taxation Code
2 is amended to read:

3

60633.1.  

(a) A taxpayer may file a claim with the board for
4reimbursement of bank charges and any other reasonable
5third-party check charge fees incurred by the taxpayer as the direct
6result of an erroneous levy or notice to withhold, erroneous
7processing action, or erroneous collection action by the board.
8Bank and third-party charges include a financial institution’s or
9third party’s customary charge for complying with the levy or
10notice to withhold instructions and reasonable charges for
11overdrafts that are a direct consequence of the erroneous levy or
12notice to withhold, erroneous processing action, or erroneous
13collection action. The charges are those paid by the taxpayer and
14not waived for reimbursement by the financial institution or third
15party. Each claimant applying for reimbursement shall file a claim
16with the board that shall be in a form as may be prescribed by the
17board. In order for the board to grant a claim, the board shall
18determine that both of the following conditions have been satisfied:

19(1) The erroneous levy or notice to withhold, erroneous
20processing action, or erroneous collection action was caused by
21board error.

22(2) Prior to the erroneous levy or notice to withhold, erroneous
23processing action, or erroneous collection action, the taxpayer
24responded to all contacts by the board and provided the board with
25any requested information or documentation sufficient to establish
26the taxpayer’s position. This provision may be waived by the board
27for reasonable cause.

28(b) Claims pursuant to this section shall be filed within 90 days
29from the datebegin delete of the erroneous levy or notice to withhold, erroneous
30processing action, or erroneous collection action. This provision
31may be waived by the board for reasonable causeend delete
begin insert the bank and
32third-party charges were incurred by the taxpayerend insert
. Within 30 days
33from the date the claim is received, the board shall respond to the
34claim. If the board denies the claim, the taxpayer shall be notified
35in writing of the reason or reasons for the denial of the claim.



O

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