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 taxpayer and a feepayer may file a claim with the board for reimbursement of bank charges or any other reasonable 3rd-party check charge fees incurred by the taxpayer or the feepayer 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 taxpayer and a feepayer 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 taxpayer and a feepayer 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 within 90 days of the board action.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 7096 of the Revenue and Taxation Code
2 is amended to read:
(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 the bank and third-party charges were incurred by
3the taxpayer. Within 30 days from the date the claim is received,
4the board shall respond to the claim. If the board denies the claim,
5the taxpayer shall be notified in writing of the reason or reasons
6for the denial of the claim.
Section 9274 of the Revenue and Taxation Code is
8amended to read:
(a) A taxpayer may file a claim with the board for
10reimbursement of bank charges and any other reasonable
11third-party check charge fees incurred by the taxpayer as the direct
12result of an erroneous levy or notice to withhold, erroneous
13processing action, or erroneous collection action by the board.
14Bank and third-party charges include a financial institution’s or
15third party’s customary charge for complying with the levy or
16notice to withhold instructions and reasonable charges for
17overdrafts that are a direct consequence of the erroneous levy or
18notice to withhold, erroneous processing action, or erroneous
19collection action. The charges are those paid by the taxpayer and
20not waivedbegin delete for reimbursementend deletebegin insert
or reimbursedend insert by the financial
21institution or third party. Each claimant applying for reimbursement
22shall file a claim with the board that shall be in a form as may be
23prescribed by the board. In order for the board to grant a claim,
24the board shall determine that both of the following conditions
25have been satisfied:
26(1) The erroneous levy or notice tobegin delete withhold was caused by begin insert withhold, erroneous processing action, or erroneous
27board error, erroneous processing action, or erroneous collection
28action.end delete
29collection action was caused by board error.end insert
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 the bank and third-party charges were incurred by
38the taxpayer. Within 30 days from the date the claim is received,
39the board shall respond to the claim. If the board denies the claim,
P4 1the taxpayer shall be notified in writing of the reason or reasons
2for the denial of the claim.
Section 30459.4 of the Revenue and Taxation Code
4 is amended to read:
(a) A taxpayer may file a claim with the board for
6reimbursement of bank charges and any other reasonable
7third-party check charge fees incurred by the taxpayer as the direct
8result of an erroneous levy or notice to withhold, erroneous
9processing action, or erroneous collection action by the board.
10Bank and third-party charges include a financial institution’s or
11third party’s customary charge for complying with the levy or
12notice to withhold instructions and reasonable charges for
13overdrafts that are a direct consequence of the erroneous levy or
14notice to withhold, erroneous processing action, or erroneous
15collection action. The charges are those paid by the taxpayer and
16not waivedbegin delete for reimbursementend deletebegin insert
or reimbursedend insert by the financial
17institution or third party. Each claimant applying for reimbursement
18shall file a claim with the board that shall be in a form as may be
19prescribed by the board. In order for the board to grant a claim,
20the board shall determine that both of the following conditions
21have 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 date the bank and third-party charges were incurred by
33the taxpayer. Within 30 days from the date the claim is received,
34the board shall respond to the claim. If the board denies the claim,
35the taxpayer shall be notified in writing of the reason or reasons
36for the denial of the claim.
Section 32474 of the Revenue and Taxation Code is
38amended to read:
(a) A taxpayer may file a claim with the board for
40reimbursement of bank charges and any other reasonable
P5 1third-party check charge fees incurred by the taxpayer as the direct
2result of an erroneous levy or notice to withhold, erroneous
3processing action, or erroneous collection action by the board.
4Bank and third-party charges include a financial institution’s or
5third party’s customary charge for complying with the levy or
6notice to withhold instructions and reasonable charges for
7overdrafts that are a direct consequence of the erroneous levy or
8notice to withhold, erroneous processing action, or erroneous
9collection action. The charges are those paid by the taxpayer and
10not waivedbegin delete for reimbursementend deletebegin insert
or reimbursedend insert by the financial
11institution or third party. Each claimant applying for reimbursement
12shall file a claim with the board that shall be in a form as may be
13prescribed by the board. In order for the board to grant a claim,
14the board shall determine that both of the following conditions
15have been satisfied:
16(1) The erroneous levy or notice to withhold, erroneous
17processing action, or erroneous collection action was caused by
18board error.
19(2) Prior to the erroneous levy or notice to withhold, erroneous
20processing action, or erroneous collection action, the taxpayer
21responded to all contacts by the board and provided the board with
22any requested information or documentation sufficient to establish
23the taxpayer’s position. This provision
may be waived by the board
24for reasonable cause.
25(b) Claims pursuant to this section shall be filed within 90 days
26from the date the bank and third-party charges were incurred by
27the taxpayer. Within 30 days from the date the claim is received,
28the board shall respond to the claim. If the board denies the claim,
29the taxpayer shall be notified in writing of the reason or reasons
30for the denial of the claim.
Section 40214 of the Revenue and Taxation Code is
32amended to read:
(a) A taxpayer may file a claim with the board for
34reimbursement of bank charges and any other reasonable
35third-party check charge fees incurred by the taxpayer as the direct
36result of an erroneous levy or notice to withhold, erroneous
37processing action, or erroneous collection action by the board.
38Bank and third-party charges include a financial institution’s or
39third party’s customary charge for complying with the levy or
40notice to withhold instructions and reasonable charges for
P6 1overdrafts that are a direct consequence of the erroneous levy or
2notice to withhold, erroneous processing action, or erroneous
3collection action. The charges are those paid by the taxpayer and
4not waivedbegin delete for reimbursementend deletebegin insert
or reimbursedend insert by the financial
5institution or third party. Each claimant applying for reimbursement
6shall file a claim with the board that shall be in a form as may be
7prescribed by the board. In order for the board to grant a claim,
8the board shall determine that both of the following conditions
9have been satisfied:
10(1) The erroneous levy or notice to withhold, erroneous
11processing action, or erroneous collection action was caused by
12board error.
13(2) Prior to the erroneous levy or notice to withhold, erroneous
14processing action, or erroneous collection action, the taxpayer
15responded to all contacts by the board and provided the board with
16any requested information or documentation sufficient to establish
17the taxpayer’s position. This provision
may be waived by the board
18for reasonable cause.
19(b) Claims pursuant to this section shall be filed within 90 days
20from the date the bank and third-party charges were incurred by
21the taxpayer. Within 30 days from the date the claim is received,
22the board shall respond to the claim. If the board denies the claim,
23the taxpayer shall be notified in writing of the reason or reasons
24for the denial of the claim.
Section 41174 of the Revenue and Taxation Code is
26amended to read:
(a) A taxpayer may file a claim with the board for
28reimbursement of bank charges and any other reasonable
29third-party check charge fees incurred by the taxpayer as the direct
30result of an erroneous levy or notice to withhold, erroneous
31processing action, or erroneous collection action by the board.
32Bank and third-party charges include a financial institution’s or
33third party’s customary charge for complying with the levy or
34notice to withhold instructions and reasonable charges for
35overdrafts that are a direct consequence of the erroneous levy or
36notice to withhold, erroneous processing action, or erroneous
37collection action. The charges are those paid by the taxpayer and
38not waivedbegin delete for reimbursementend deletebegin insert
or reimbursedend insert
by the financial
39institution or third party. Each claimant applying for reimbursement
40shall file a claim with the board that shall be in a form as may be
P7 1prescribed by the board. In order for the board to grant a claim,
2the board shall determine that both of the following conditions
3have been satisfied:
4(1) The erroneous levy or notice to withhold, erroneous
5processing action, or erroneous collection action was caused by
6board error.
7(2) Prior to the erroneous levy or notice to withhold, erroneous
8processing action, or erroneous collection action, the taxpayer
9responded to all contacts by the board and provided the board with
10any requested information or documentation sufficient to establish
11the taxpayer’s position. This provision may be waived by the board
12for
reasonable cause.
13(b) Claims pursuant to this section shall be filed within 90 days
14from the date the bank and third-party charges were incurred by
15the taxpayer. Within 30 days from the date the claim is received,
16the board shall respond to the claim. If the board denies the claim,
17the taxpayer shall be notified in writing of the reason or reasons
18for the denial of the claim.
Section 43525 of the Revenue and Taxation Code is
20amended to read:
(a) A taxpayer may file a claim with the board for
22reimbursement of bank charges and any other reasonable
23third-party check charge fees incurred by the taxpayer as the direct
24result of an erroneous levy or notice to withhold, erroneous
25processing action, or erroneous collection action by the board.
26Bank and third-party charges include a financial institution’s or
27third party’s customary charge for complying with the levy or
28notice to withhold instructions and reasonable charges for
29overdrafts that are a direct consequence of the erroneous levy or
30notice to withhold, erroneous processing action, or erroneous
31collection action. The charges are those paid by the taxpayer and
32not waivedbegin delete for reimbursementend deletebegin insert
or reimbursedend insert by the financial
33institution or third party. Each claimant applying for reimbursement
34shall file a claim with the board that shall be in a form as may be
35prescribed by the board. In order for the board to grant a claim,
36the board shall determine that both of the following conditions
37have been satisfied:
38(1) The erroneous levy or notice to withhold, erroneous
39processing action, or erroneous collection action was caused by
40board error.
P8 1(2) Prior to the erroneous levy or notice to withhold, erroneous
2processing action, or erroneous collection action, the taxpayer
3responded to all contacts by the board and provided the board with
4any requested information or documentation sufficient to establish
5the taxpayer’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 date the bank and third-party charges were incurred by
9the taxpayer. Within 30 days from the date the claim is received,
10the board shall respond to the claim. If the board denies the claim,
11the taxpayer shall be notified in writing of the reason or reasons
12for the denial of the claim.
Section 45870 of the Revenue and Taxation Code is
14amended to read:
(a) A feepayer may file a claim with the board for
16reimbursement of bank charges and any other reasonable
17third-party check charge fees incurred by the feepayer as the direct
18result of an erroneous levy or notice to withhold, erroneous
19processing action, or erroneous collection action by the board.
20Bank and third-party charges include a financial institution’s or
21third party’s customary charge for complying with the levy or
22notice to withhold instructions and reasonable charges for
23overdrafts that are a direct consequence of the erroneous levy or
24notice to withhold, erroneous processing action, or erroneous
25collection action. The charges are those paid by the feepayer and
26not waivedbegin delete for reimbursementend deletebegin insert
or reimbursedend insert by the financial
27institution or third party. Each claimant applying for reimbursement
28shall file a claim with the board that shall be in a form as may be
29prescribed by the board. In order for the board to grant a claim,
30the board shall determine that both of the following conditions
31have been satisfied:
32(1) The erroneous levy or notice to withhold, erroneous
33processing action, or erroneous collection action was caused by
34board error.
35(2) Prior to the erroneous levy or notice to withhold, erroneous
36processing action, or erroneous collection action, the feepayer
37responded to all contacts by the board and provided the board with
38any requested information or documentation sufficient to establish
39the feepayer’s position. This
provision may be waived by the board
40for reasonable cause.
P9 1(b) Claims pursuant to this section shall be filed within 90 days
2from the date the bank and third-party charges were incurred by
3the feepayer. Within 30 days from the date the claim is received,
4the board shall respond to the claim. If the board denies the claim,
5the feepayer shall be notified in writing of the reason or reasons
6for the denial of the claim.
Section 46625 of the Revenue and Taxation Code is
8amended to read:
(a) A feepayer may file a claim with the board for
10reimbursement of bank charges and any other reasonable
11third-party check charge fees that are incurred by the feepayer as
12the direct result of an erroneous levy or notice to withhold,
13erroneous processing action, or erroneous collection action by the
14board. Bank and third-party charges include a financial institution’s
15or third party’s customary charge for complying with either a levy
16or instructions in a notice to withhold, and reasonable charges for
17overdrafts that are a direct consequence of the erroneous levy or
18notice to withhold, erroneous processing action, or erroneous
19collection action. Bank charges include only those charges that
20are paid by the
feepayer and not waivedbegin delete for reimbursementend deletebegin insert or
21reimbursedend insert by the financial institution or third party. Each claimant
22applying for reimbursement pursuant to this section shall file a
23claim with the board that shall be in the form as may be prescribed
24by the board. The board shall not grant a claim unless it determines
25that both of the following conditions have been satisfied:
26(1) The erroneous levy or notice to withhold, erroneous
27processing action, or erroneous collection actionbegin delete resulted fromend delete
28begin insert was caused by end insert board
error.
29(2) Prior to the erroneous levy or notice to withhold, erroneous
30processing action, or erroneous collection action, the feepayer
31responded to all contacts by the board and provided the board with
32any requested information or documentationbegin delete that wasend delete sufficient to
33establish the feepayer’s position.begin delete The requirement of this paragraphend delete
34begin insert This provision end insert may be waived by the board for reasonable cause.
35(b) Claims pursuant to this section shall be filed within 90 days
36from the date the bank and third-party charges were incurred by
37
the feepayer. The board shall respond to a claim filed pursuant to
38this section within 30 days of receipt. If the board denies a claim,
39the feepayer shall be notified in writing of the reason or reasons
40for denial.
Section 50156.14 of the Revenue and Taxation Code
2 is amended to read:
(a) A feepayer may file a claim with the board for
4reimbursement of bank charges and any other reasonable
5third-party check charge fees incurred by the feepayer 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 paidbegin delete toend deletebegin insert
byend insert the feepayer
14and not waivedbegin delete for reimbursementend deletebegin insert or reimbursedend insert by the financial
15institution or third party. Each claimant applying for reimbursement
16shall file a claim with the board that shall be in a form as may be
17prescribed by the board. In order for the board to grant a claim,
18the board shall determine that both of the following conditions
19have been satisfied:
20(1) The erroneous levy or notice to withhold, erroneous
21processing action, or erroneous collection action was caused by
22board error.
23(2) Prior to the erroneous levy or notice to withhold, erroneous
24processing
action, or erroneous collection action, the feepayer
25responded to all contacts by the board and provided the board with
26any requested information or documentation sufficient to establish
27the feepayer’s position. This provision may be waived by the board
28for reasonable cause.
29(b) Claims pursuant to this section shall be filed within 90 days
30from the date the bank and third-party charges were incurred by
31the feepayer. Within 30 days from the date the claim is received,
32the board shall respond to the claim. If the board denies the claim,
33the feepayer shall be notified in writing of the reason or reasons
34for the denial of the claim.
Section 55335 of the Revenue and Taxation Code is
36amended to read:
(a) A taxpayer may file a claim with the board for
38reimbursement of bank charges and any other reasonable
39third-party check charge fees incurred by the taxpayer as the direct
40result of an erroneous levy or notice to withhold, erroneous
P11 1processing action, or erroneous collection action by the board.
2Bank and third-party charges include a financial institution’s or
3third party’s customary charge for complying with the levy or
4notice to withhold instructions and reasonable charges for
5overdrafts that are a direct consequence of the erroneous levy or
6notice to withhold, erroneous processing action, or erroneous
7collection action. The charges are those paid by the taxpayer and
8not waivedbegin delete for reimbursementend deletebegin insert
or reimbursedend insert by the financial
9institution or third party. Each claimant applying for reimbursement
10shall file a claim with the board that shall be in a form as may be
11prescribed by the board. In order for the board to grant a claim,
12the board shall determine that both of the following conditions
13have been satisfied:
14(1) The erroneous levy or notice to withhold, erroneous
15processing action, or erroneous collection action was caused by
16board error.
17(2) Prior to the erroneous levy or notice to withhold, erroneous
18processing action, or erroneous collection action, the taxpayer
19responded to all contacts by the board and provided the board with
20any requested information or documentation sufficient to establish
21the taxpayer’s position. This provision
may be waived by the board
22for reasonable cause.
23(b) Claims pursuant to this section shall be filed within 90 days
24from the date the bank and third-party charges were incurred by
25the taxpayer. Within 30 days from the date the claim is received,
26the board shall respond to the claim. If the board denies the claim,
27the taxpayer shall be notified in writing of the reason or reasons
28for the denial of the claim.
Section 60633.1 of the Revenue and Taxation Code
30 is amended to read:
(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
P12 1collection action. The charges are those paid by the taxpayer and
2not waivedbegin delete for reimbursementend deletebegin insert
or reimbursedend insert by the financial
3institution or third party. Each claimant applying for reimbursement
4shall file a claim with the board that shall be in a form as may be
5prescribed by the board. In order for the board to grant a claim,
6the board shall determine that both of the following conditions
7have been satisfied:
8(1) The erroneous levy or notice to withhold, erroneous
9processing action, or erroneous collection action was caused by
10board error.
11(2) Prior to the erroneous levy or notice to withhold, erroneous
12processing action, or erroneous collection action, the taxpayer
13responded to all contacts by the board and provided the board with
14any requested information or documentation sufficient to establish
15the taxpayer’s position. This provision
may be waived by the board
16for reasonable cause.
17(b) Claims pursuant to this section shall be filed within 90 days
18from the date the bank and third-party charges were incurred by
19the taxpayer. Within 30 days from the date the claim is received,
20the board shall respond to the claim. If the board denies the claim,
21the taxpayer shall be notified in writing of the reason or reasons
22for the denial of the claim.
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