BILL ANALYSIS                                                                                                                                                                                                    


          |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  


                                                                     SB 442

          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.

          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


                                                                     SB 442

           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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