BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 442|
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THIRD READING
Bill No: SB 442
Author: Wyland (R)
Amended: 4/16/13
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 4/10/13
AYES: Wolk, Knight, Beall, DeSaulnier, Emmerson, Hernandez, Liu
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : State Board of Equalization: erroneous charges
SOURCE : Board of Equalization
DIGEST : This bill conforms the special taxes at the Board of
Equalization (BOE) to all other taxes and provides that
reimbursement claims to the BOE shall be filed within 90 days
from the date the bank and third-party charges were incurred by
the taxpayer.
ANALYSIS : Under existing law, the BOE may seize the property
of a delinquent taxpayer, or issue a levy or notice to withhold
to satisfy the tax obligations of a delinquent taxpayer.
Taxpayers may file a reimbursement claim with the BOE for bank
chargers or any other reasonable third party charges and fees
only when they are the direct result of an erroneous processing
or collection action.
Other BOE-administered special tax and fee laws contain
identical provisions, except they don't authorize a taxpayer to
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claim charge or fee reimbursement due to a BOE "erroneous
processing action" or "erroneous collection action."
All relevant statutes require a taxpayer to file a claim within
90 days from the date of BOE's erroneous action. The statutes
require the BOE to respond within 30 days from the date it
receives the claim.
This bill:
1.Conforms relevant special tax and fee law bank charge
reimbursement provisions to the Sales and Use Tax Law to allow
taxpayer fee and charge reimbursement due to an erroneous
processing action or erroneous collection action by the BOE.
The relevant special tax and fee laws include: Use Fuel Tax
Law, Cigarette and Tobacco Products Tax Law, Alcoholic
Beverage Tax Law, Energy Resources Surcharge Act, Emergency
Telephone Users Surcharge Law, 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.
2.Provides that reimbursement claims to the BOE shall be filed
within 90 days from the date the bank and third-party charges
were incurred by the taxpayer or the fee payer.
Comments
According to the author's office there are documented cases
where taxpayers are prevented from filing a claim within 90 days
of the erroneous action. In one example, the BOE filed a levy
in error, and the taxpayer did not receive the BOE's notice
since it was sent to an incorrect address. Additionally, the
taxpayer's financial institution delayed complying with the levy
for nearly three months, and notified the taxpayer of the levy
at the time. Since the taxpayer's first notification of the
levy came later than 90 days after the initial notice was
issued, which resulted in early withdrawal fees and bank
processing fee, the taxpayer was unable to file for a claim with
the BOE for reimbursement of bank charges.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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SUPPORT : (Verified 5/1/13)
Board of Equalization (source)
California Taxpayers Association
AB:ej 5/1/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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