BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                       CONSENT


          Bill No:  SB 824
          Author:   Senate Governance and Finance Committee
          Amended:  As introduced
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  7-0, 5/1/13
          AYES:  Wolk, Knight, Beall, DeSaulnier, Emmerson, Hernandez, Liu


           SUBJECT  :    State Board of Equalization:  administration

          SOURCE  :     Board of Equalization


           DIGEST  :    This bill corrects code references for the  
          administration of the Board of Equalization (BOE) taxes and  
          fees.

           ANALYSIS  :    Under current Health and Safety Code (HSC) an owner  
          of an underground storage tank is required to pay a storage fee  
          of six mills ($0.006) for each gallon of petroleum (including,  
          but not limited to, gasoline and diesel fuel) placed in an  
          underground storage tank which he/she owns.  There is an  
          additional imposition of the underground storage fee in another  
          part of the HSC of eight mills ($0.008), for a total underground  
          storage fee of 14 mills ($0.014) per gallon of petroleum placed  
          in the tank.  HSC Section 25299.43 also provides in subdivision  
          (g) that the additional fee imposed shall be paid to the BOE  
          under the Underground Storage Tank Maintenance Fee Law "in the  
          same manner as, and consistent with, the fees imposed under  
          Section 24299.41."  

                                                                CONTINUED





                                                                     SB 824
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          This bill amends the HSC Section 25299.43 to correctly reference  
          HSC Section 25299.41 rather than HSC Section 24299.41 as the  
          section imposing the underground storage tank maintenance fee.

          Under existing law, the Fee Collection Procedures Law  
          (Procedures Law) was added to the Revenue and Taxation Code  
          (RTC) as Part 30 (commencing with RTC Section 55001) of Division  
          2.  RTC Section 55001 provides that this "chapter shall be known  
          and may be cited as the Fee Collection Procedures Law."  As  
          such, RTC Section 55001 incorrectly cites a single chapter of  
          the Procedures Law rather than referencing the law in its  
          entirety as Part 30.  

          This bill amends RTC Section 55001 to make a non-substantive  
          reference correction to the Procedures Law, from "chapter" to  
          "part."

          Under the existing Sales and Use Tax Law (RTC Section 7093.6),  
          Use Fuel Tax Law (RTC Section 9278), Cigarette and Tobacco  
          Products Tax Law (RTC Section 30459.15), Alcoholic Beverage Tax  
          Law (RTC Section 32471.5), Emergency Telephone Users Surcharge  
          Act (RTC Section 41171.5), Oil Spill Response, Prevention, and  
          Administration Fees Law (RTC Section 46628), Underground Storage  
          Tank Maintenance Fee Law (RTC Section 50156.18), Fee Collection  
          Procedures Law (RTC Section 55332.5), and Diesel Fuel Tax Law  
          (RTC Section 60637), the BOE is allowed to compromise a final  
          tax liability if certain requirements are met.   

          This bill amends RTC Section 55332.5, as amended by Section 593  
          of Chapter 15 of the Statutes of 2001, to simply make a  
          technical and non-substantive correction to incorporate missing  
          language.

           Comments
           
          This bill is sponsored by the BOE as a "code clean-up" to ensure  
          efficient and accurate tax administration.  As a committee bill,  
          it will only contain items to which all members of the committee  
          agree.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  5/3/13)







                                                                     SB 824
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          Board of Equalization (source)



          AB:k  5/3/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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