BILL ANALYSIS Ó
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THIRD READING
Bill No: SB 582
Author: Knight (R)
Amended: 4/18/13
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 5/1/13
AYES: Wolk, Knight, Beall, DeSaulnier, Emmerson, Hernandez, Liu
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/23/13
AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SUBJECT : Tax information: administration
SOURCE : Board of Equalization Member, George Runner
DIGEST : This bill requires the Franchise Tax Board (FTB), the
Board of Equalization (BOE) and the Employment Development
Department (EDD) to conduct a feasibility study on the
development of a single internet portal that virtually
consolidates the agencies to enable online, self-service access
through a single logon for taxpayers.
ANALYSIS : The California Constitution establishes BOE as a
five-member board composed of four members elected by each
district plus the State Controller. Currently, BOE administers
sales and use taxes, excise taxes, special taxes, and the
state's fee programs.
Existing law requires employers who pay employees
California-sourced income to withhold expected taxes.
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Businesses with one or more employees in the current or
preceding taxable year, and who pays wages in excess of $100 per
quarter must register with EDD. Employers deposit personal
income tax withholding by mail or electronically with EDD, along
with amounts for Unemployment Insurance (UI), Employment
Training Taxes, and State Disability Insurance (SDI). Federal
schedules determine when employers make Personal Income Tax and
SDI payments, while UI and ETT payments are made quarterly.
Each quarter, the taxpayer files a form to reconcile these
deposits with actual taxes due.
FTB is a three-person board comprised of the State Controller,
Director of the Department of Finance, and Chair of the BOE.
FTB administers the Personal Income Tax and Corporation Tax Law,
and collects debts on behalf of state and local agencies. FTB
may issue forms necessary to administer the taxes. Employees
and others receiving payments reconcile amounts previously
withheld with actual tax due when filing their annual tax
returns with FTB.
This bill requires EDD, FTB, and BOE to collaborate and focus
their current and future information technology efforts to
conduct a feasibility study on developing a single web-based
portal that virtually consolidates the agencies to enable
online, self-service access through a single logon for taxpayers
to:
Electronically file returns
Submit forms or other information
Remit amounts due
Determine account balances and tax due dates
Identify appeal status
Claim a refund
Request relief from interest or penalty
Any other information the agencies deem helpful to the
taxpayer to assist in compliance with the state's tax laws.
This bill additionally requires agencies to consolidate forms,
applications, and other documents to reduce or eliminate the
number of multiple submissions on the same information by
taxpayers upon a joint determination that a need exists to
provide cost-effective services to taxpayers and an
appropriation by the Legislature.
This bill also makes legislative findings and declarations to
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support its purposes.
Comments
According to the author, "The tax paying process in California
is daunting, intimidating, and confusing due to the course of
action a taxpayer must undergo in order to comply with
California's tax policies. Focusing on the customer should and
will remain a core element of California's tax administration.
To obtain assistance and comply with California's current tax
laws, policies, and procedures, many taxpayers interact with
each agency separately. Taxpayers should not have to navigate
through complex government structures, understanding
bureaucratic relationships in order to interact with the
government agencies, particularly in a sensitive area like
taxes. This measure seeks to consolidate the online presence of
BOE, FTB and EDD, creating a one-stop shop for taxpayers to go
for all of their tax services. The goal is to provide a
seamless process for taxpayers' online interactions in
California."
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Unknown costs to the tax agencies (likely greater than
$50,000 General Fund) to prepare the feasibility study.
Preparing a feasibility study report typically costs a
state department about $250,000.
Unknown, likely major General Fund cost pressures to
FTB, BOE, and EDD, potentially in the range of $10 million,
to make coordinated IT improvements to each agency's
independent systems to virtually consolidate the agencies,
providing self-service access with a single logon that
allows for an integrated interface.
Unknown, potentially significant future costs pressures
to consolidate forms, applications, and other documents.
SUPPORT : (Verified 5/23/13)
Board of Equalization Member, George Runner (source)
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AB:ne 5/23/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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