BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 442| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 442 Author: Wyland (R) Amended: 6/15/13 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 SENATE FLOOR : 32-0, 5/6/13 (Consent) AYES: Anderson, Beall, Block, Calderon, Cannella, Corbett, Correa, De León, DeSaulnier, Emmerson, Evans, Fuller, Gaines, Galgiani, Hancock, Hernandez, Hill, Hueso, Huff, Knight, Leno, Lieu, Liu, Monning, Nielsen, Padilla, Pavley, Price, Roth, Steinberg, Wright, Wyland NO VOTE RECORDED: Berryhill, Jackson, Lara, Walters, Wolk, Yee, Vacancy, Vacancy ASSEMBLY FLOOR : 77-0, 8/8/13 (Consent) - See last page for vote 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. CONTINUED SB 442 Page 2 Assembly Amendments are clarifying and technical. 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 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 CONTINUED SB 442 Page 3 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 SUPPORT : (Verified 8/9/13) Board of Equalization (source) California Taxpayers Association ASSEMBLY FLOOR : 77-0, 8/8/13 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chesbro, Conway, Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Chávez, Vacancy, Vacancy AB:ej 8/12/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED