BILL ANALYSIS                                                                                                                                                                                                    

                                                                  SB 442
                                                                  Page  1

          Date of Hearing:   July 3, 2013

                                  Mike Gatto, Chair

                    SB 442 (Wyland) - As Amended:  June 15, 2013 

          Policy Committee:                             Revenue and  
          Taxation     Vote:                            9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              


          This bill extends, from sales and use tax law to other tax and  
          fee programs, the ability of a taxpayer to file a reimbursement  
          claim with the Board of Equalization (BOE) for bank charges and  
          other check charge fees incurred because of erroneous processing  
          or collection action by BOE.  This bill also provides that the  
          taxpayer must file a claim within 90 days of the charges being  

           FISCAL EFFECT  

          Minor and absorbable costs for BOE and negligible revenue losses  
          for the state.


           1)Purpose  .  According to the author, SB 442 would make all  
            special tax and fee laws administered by BOE the same by  
            allowing a taxpayer to claim reimbursement resulting from an  
            erroneous processing action or collection action by BOE.  The  
            author notes SB 442 also provides a taxpayer 90 days from the  
            date the bank or third party charges were incurred to file  
            claim with BOE, as opposed to current provisions requiring the  
            taxpayer to file the claim within 90 days of BOE's erroneous  
            action.  These changes extend the refund provisions found in  
            the sales and use tax program to the BOE's special tax and fee  
            programs.  The author argues this bill allows BOE to fairly  
            and equitably administer the sales and use tax program and  
            special tax and fee programs under the variety of  
            circumstances that could arise following an erroneous levy or  
            erroneous processing action by the BOE.


                                                                  SB 442
                                                                  Page  2

           2)Support  .  BOE, the sponsor, states this bill parallels  
            provisions in income tax law, which specifically allow  
            taxpayers to claim reimbursement for bank charges incurred by  
            taxpayers through similar types of FTB processing and  
            collection errors.  The California Taxpayers Association  
            argues it is fair and equitable to reimburse taxpayers for  
            bank and third-party check charge fees when those charges are  
            a direct result of a BOE error and are not due to any fault of  
            the taxpayer or fee payer.  The provisions in this bill are  
            consistent with the sales and use tax law and the intent of  
            the original legislation that authorized the BOE to reimburse  
            taxpayers for such charges arising from BOE errors.

           3)There is no registered opposition to this bill.   
           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081