BILL ANALYSIS Ó
AB 1559
Page 1
Date of Hearing: April 27, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1559 (Dodd) - As Amended April 13, 2016
-----------------------------------------------------------------
|Policy |Revenue and Taxation |Vote:|9 - 0 |
|Committee: | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
-----------------------------------------------------------------
Urgency: Yes State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill authorizes the State Board of Equalization (BOE) to
provide a filing and payment extension of up to three months for
specified taxpayers in the case of a natural or an economic
disaster.
The provisions of this bill apply to the Sales and Use Tax;
Motor Vehicle Fuel Tax; Use Fuel Tax; Cigarette and Tobacco
AB 1559
Page 2
Products Tax; Alcoholic Beverage Tax; Timber Yield Tax; Energy
Resources Surcharge; Emergency Telephone Users Surcharge;
Hazardous Substance Tax, Integrated Waste Management Fee; Oil
Spill Response Prevention, and Administration Fees; Underground
Storage Tank Fee; Fee Collections Procedures; and Diesel Fuel
Tax Laws.
FISCAL EFFECT:
1)There could be minor revenue loss related to foregone
penalties for late returns beyond the existing one-month
extension.
2)Minor and absorbable administrative costs because the BOE
already has procedures to handle time extension provisions in
existing law.
COMMENTS:
1)Purpose. According to the author, this bill will provide
business owners in disaster areas more time to file returns
and pay tax obligations to the BOE.
2)Background. Generally, taxpayers who are late paying a tax
must pay a 10% penalty plus interest on the unpaid tax.
However, the BOE may waive the 10% penalty fee for one month
for taxpayers coping with a disaster. Moreover, taxpayers may
request a relief of the interest on that late payment as well.
3)Fee only. This bill only extends the period that a taxpayer
may have to pay due taxes without facing a 10% penalty.
Existing law already allows a taxpayer to request interest
relief in the case of a disaster.
AB 1559
Page 3
Analysis Prepared by:Luke Reidenbach / APPR. / (916)
319-2081