California Legislature—2015–16 Regular Session

Assembly BillNo. 2201


Introduced by Assembly Member Brough

(Coauthors: Assembly Members Gallagher, Gipson, Mullin, and Waldron)

(Coauthors: Senators Anderson, Berryhill, Cannella, Gaines, Huff, Nielsen, and Vidak)

February 18, 2016


An act to repeal and add Sections 6591.6, 7655.5, 8876.5, 12631.5, 30281.5, 32252.5, 40101.5, 41095.5, 43155.5, 45153.5, 46154.5, 50112.1, 55042.5, and 60207.5 to the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 2201, as introduced, Brough. State Board of Equalization: administration: interest.

Existing law requires the payment of interest on late payments, or late prepayments, of tax, fee, or surcharge payments at the modified adjusted rate per month under the provisions of the Sales and Use Tax Law, Motor Vehicle Fuel Tax Law, Use Fuel Tax Law, Cigarette and Tobacco Products Tax Law, Alcoholic Beverage Tax Law, Energy Resources Surcharge Law, Emergency Telephone Users Surcharge Act, 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, Diesel Fuel Tax Law, and the law governing the taxation of insurance companies. Interest is charged on a per-month basis, with one month’s interest charged for each month, or fraction of a month, that a payment or prepayment is unpaid. Existing law, until January 1, 2016, allowed the members of the State Board of Equalization, meeting as a public body, to find, under specified circumstances, that it is inequitable to compute interest on a monthly basis and to instead compute interest on a daily basis with respect to electronic payments or prepayments of taxes, fees, and surcharges.

This bill would reinstate those provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 6591.6 of the Revenue and Taxation
2Code
is repealed.

begin delete
3

6591.6.  

(a) If the board finds, taking into account all facts and
4circumstances, that it is inequitable to compute interest at the
5modified adjusted rate per month or fraction thereof, as defined
6in subdivision (b) of Section 6591.5, interest shall be computed at
7the modified adjusted daily rate from the date on which the tax or
8prepayment was due until the date of payment, if all of the
9following occur:

10(1) The payment of tax or the prepayment was made one
11business day after the date the tax or prepayment was due.

12(2) The person was granted relief from all penalties that applied
13to that payment of tax or prepayment.

14(3) The person files a request for an oral hearing before the
15board.

16(b) For purposes of this section, “modified adjusted daily rate”
17means the modified adjusted rate per annum as defined in
18subdivision (a) of Section 6591.5 determined on a daily basis by
19dividing the modified adjusted rate per annum by 365.

20(c) For purposes of this section, “board” means the members
21of the State Board of Equalization meeting as a public body.

22(d) For purposes of this section, “business day” means any day
23other than a Saturday, Sunday, or any day designated as a state
24 holiday.

25(e) This section shall not apply to any payment made pursuant
26to a deficiency determination, a determination where no return has
27been filed, or a jeopardy determination issued by the board.

28(f) This section shall only apply to electronic payments or
29prepayments of taxes.

P3    1(g) This section shall be operative only until January 1, 2016.

end delete
2

SEC. 2.  

Section 6591.6 is added to the Revenue and Taxation
3Code
, to read:

4

6591.6.  

(a) If the board finds, taking into account all facts and
5circumstances, that it is inequitable to compute interest at the
6modified adjusted rate per month or fraction thereof, as defined
7in subdivision (b) of Section 6591.5, interest shall be computed at
8the modified adjusted daily rate from the date on which the tax or
9prepayment was due until the date of payment, if all of the
10following occur:

11(1) The payment of tax or the prepayment was made one
12business day after the date the tax or prepayment was due.

13(2) The person was granted relief from all penalties that applied
14to that payment of tax or prepayment.

15(3) The person files a request for an oral hearing before the
16board.

17(b) For purposes of this section, “modified adjusted daily rate”
18means the modified adjusted rate per annum as defined in
19subdivision (a) of Section 6591.5 determined on a daily basis by
20dividing the modified adjusted rate per annum by 365.

21(c) For purposes of this section, “board” means the members
22of the State Board of Equalization meeting as a public body.

23(d) For purposes of this section, “business day” means any day
24other than a Saturday, Sunday, or any day designated as a state
25holiday.

26(e) This section shall not apply to any payment made pursuant
27to a deficiency determination, a determination where no return has
28been filed, or a jeopardy determination issued by the board.

29(f) This section shall only apply to electronic payments or
30prepayments of taxes.

31

SEC. 3.  

Section 7655.5 of the Revenue and Taxation Code is
32repealed.

begin delete
33

7655.5.  

(a) If the board finds, taking into account all facts and
34circumstances, that it is inequitable to compute interest at the
35modified adjusted rate per month or fraction thereof, as defined
36in subdivision (b) of Section 6591.5, interest shall be computed at
37the modified adjusted daily rate from the date on which the tax or
38 prepayment was due until the date of payment, if all of the
39following occur:

P4    1(1) The payment of tax or the prepayment was made one
2business day after the date the tax or prepayment was due.

3(2) The person was granted relief from all penalties that applied
4to that payment of tax or prepayment.

5(3) The person files a request for an oral hearing before the
6board.

7(b) For purposes of this section, “modified adjusted daily rate”
8means the modified adjusted rate per annum as defined in
9subdivision (a) of Section 6591.5 determined on a daily basis by
10dividing the modified adjusted rate per annum by 365.

11(c) For purposes of this section, “board” means the members
12of the State Board of Equalization meeting as a public body.

13(d) For purposes of this section, “business day” means any day
14other than a Saturday, Sunday, or any day designated as a state
15holiday.

16(e) This section shall not apply to any payment made pursuant
17to a deficiency determination, a determination where no return has
18been filed, or a jeopardy determination issued by the board.

19(f) This section shall only apply to electronic payments or
20prepayments of taxes.

21(g) This section shall be operative only until January 1, 2016.

end delete
22

SEC. 4.  

Section 7655.5 is added to the Revenue and Taxation
23Code
, to read:

24

7655.5.  

(a) If the board finds, taking into account all facts and
25circumstances, that it is inequitable to compute interest at the
26modified adjusted rate per month or fraction thereof, as defined
27in subdivision (b) of Section 6591.5, interest shall be computed at
28the modified adjusted daily rate from the date on which the tax or
29prepayment was due until the date of payment, if all of the
30following occur:

31(1) The payment of tax or the prepayment was made one
32business day after the date the tax or prepayment was due.

33(2) The person was granted relief from all penalties that applied
34to that payment of tax or prepayment.

35(3) The person files a request for an oral hearing before the
36board.

37(b) For purposes of this section, “modified adjusted daily rate”
38means the modified adjusted rate per annum as defined in
39subdivision (a) of Section 6591.5 determined on a daily basis by
40dividing the modified adjusted rate per annum by 365.

P5    1(c) For purposes of this section, “board” means the members
2of the State Board of Equalization meeting as a public body.

3(d) For purposes of this section, “business day” means any day
4other than a Saturday, Sunday, or any day designated as a state
5holiday.

6(e) This section shall not apply to any payment made pursuant
7to a deficiency determination, a determination where no return has
8been filed, or a jeopardy determination issued by the board.

9(f) This section shall only apply to electronic payments or
10prepayments of taxes.

11

SEC. 5.  

Section 8876.5 of the Revenue and Taxation Code is
12repealed.

begin delete
13

8876.5.  

(a) If the board finds, taking into account all facts and
14circumstances, that it is inequitable to compute interest at the
15modified adjusted rate per month or fraction thereof, as defined
16in subdivision (b) of Section 6591.5, interest shall be computed at
17the modified adjusted daily rate from the date on which the tax
18 was due until the date of payment, if all of the following occur:

19(1) The payment of tax was made one business day after the
20date the tax was due.

21(2) The person was granted relief from all penalties that applied
22to that payment of tax.

23(3) The person files a request for an oral hearing before the
24board.

25(b) For purposes of this section, “modified adjusted daily rate”
26means the modified adjusted rate per annum as defined in
27subdivision (a) of Section 6591.5 determined on a daily basis by
28dividing the modified adjusted rate per annum by 365.

29(c) For purposes of this section, “board” means the members
30of the State Board of Equalization meeting as a public body.

31(d) For purposes of this section, “business day” means any day
32other than a Saturday, Sunday, or any day designated as a state
33holiday.

34(e) This section shall not apply to any payment made pursuant
35to a deficiency determination, a determination where no return has
36been filed, or a jeopardy determination issued by the board.

37(f) This section shall only apply to electronic payments of taxes.

38(g) This section shall be operative only until January 1, 2016.

end delete
39

SEC. 6.  

Section 8876.5 is added to the Revenue and Taxation
40Code
, to read:

P6    1

8876.5.  

(a) If the board finds, taking into account all facts and
2circumstances, that it is inequitable to compute interest at the
3modified adjusted rate per month or fraction thereof, as defined
4in subdivision (b) of Section 6591.5, interest shall be computed at
5the modified adjusted daily rate from the date on which the tax
6was due until the date of payment, if all of the following occur:

7(1) The payment of tax was made one business day after the
8date the tax was due.

9(2) The person was granted relief from all penalties that applied
10to that payment of tax.

11(3) The person files a request for an oral hearing before the
12board.

13(b) For purposes of this section, “modified adjusted daily rate”
14means the modified adjusted rate per annum as defined in
15subdivision (a) of Section 6591.5 determined on a daily basis by
16dividing the modified adjusted rate per annum by 365.

17(c) For purposes of this section, “board” means the members
18of the State Board of Equalization meeting as a public body.

19(d) For purposes of this section, “business day” means any day
20other than a Saturday, Sunday, or any day designated as a state
21holiday.

22(e) This section shall not apply to any payment made pursuant
23to a deficiency determination, a determination where no return has
24been filed, or a jeopardy determination issued by the board.

25(f) This section shall only apply to electronic payments of taxes.

26

SEC. 7.  

Section 12631.5 of the Revenue and Taxation Code
27 is repealed.

begin delete
28

12631.5.  

(a) If the board finds, taking into account all facts
29and circumstances, that it is inequitable to compute interest at the
30modified adjusted rate per month or fraction thereof, as defined
31in subdivision (b) of Section 6591.5, interest shall be computed at
32the modified adjusted daily rate from the date on which the tax or
33prepayment was due until the date of payment, if all of the
34following occur:

35(1) The payment of tax or prepayment was made one business
36day after the date the tax or prepayment was due.

37(2) The person was granted relief from all penalties that applied
38to that payment of tax or prepayment.

39(3) The person files a request for an oral hearing before the
40board.

P7    1(b) For purposes of this section, “modified adjusted daily rate”
2means the modified adjusted rate per annum as defined in
3subdivision (a) of Section 6591.5 determined on a daily basis by
4dividing the modified adjusted rate per annum by 365.

5(c) For purposes of this section, “board” means the members
6of the State Board of Equalization meeting as a public body.

7(d) For purposes of this section, “business day” means any day
8other than a Saturday, Sunday, or any day designated as a state
9holiday.

10(e) This section shall not apply to any payment made pursuant
11to a deficiency determination, or a determination where no return
12has been filed.

13(f) This section shall only apply to electronic payments or
14prepayments of taxes.

15(g) This section shall be operative only until January 1, 2016.

end delete
16

SEC. 8.  

Section 12631.5 is added to the Revenue and Taxation
17Code
, to read:

18

12631.5.  

(a) If the board finds, taking into account all facts
19and circumstances, that it is inequitable to compute interest at the
20modified adjusted rate per month or fraction thereof, as defined
21in subdivision (b) of Section 6591.5, interest shall be computed at
22the modified adjusted daily rate from the date on which the tax or
23prepayment was due until the date of payment, if all of the
24following occur:

25(1) The payment of tax or prepayment was made one business
26day after the date the tax or prepayment was due.

27(2) The person was granted relief from all penalties that applied
28to that payment of tax or prepayment.

29(3) The person files a request for an oral hearing before the
30board.

31(b) For purposes of this section, “modified adjusted daily rate”
32means the modified adjusted rate per annum as defined in
33subdivision (a) of Section 6591.5 determined on a daily basis by
34dividing the modified adjusted rate per annum by 365.

35(c) For purposes of this section, “board” means the members
36of the State Board of Equalization meeting as a public body.

37(d) For purposes of this section, “business day” means any day
38other than a Saturday, Sunday, or any day designated as a state
39holiday.

P8    1(e) This section shall not apply to any payment made pursuant
2to a deficiency determination, or a determination where no return
3has been filed.

4(f) This section shall only apply to electronic payments or
5prepayments of taxes.

6

SEC. 9.  

Section 30281.5 of the Revenue and Taxation Code
7 is repealed.

begin delete
8

30281.5.  

(a) If the board finds, taking into account all facts
9and circumstances, that it is inequitable to compute interest at the
10modified adjusted rate per month or fraction thereof, as defined
11in subdivision (b) of Section 6591.5, interest shall be computed at
12the modified adjusted daily rate from the date on which the tax
13 was due until the date of payment, if all of the following occur:

14(1) The payment of tax was made one business day after the
15date the tax was due.

16(2) The person was granted relief from all penalties that applied
17to that payment of tax.

18(3) The person files a request for an oral hearing before the
19board.

20(b) For purposes of this section, “modified adjusted daily rate”
21means the modified adjusted rate per annum as defined in
22subdivision (a) of Section 6591.5 determined on a daily basis by
23dividing the modified adjusted rate per annum by 365.

24(c) For purposes of this section, “board” means the members
25of the State Board of Equalization meeting as a public body.

26(d) For purposes of this section, “business day” means any day
27other than a Saturday, Sunday, or any day designated as a state
28holiday.

29(e) This section shall not apply to any payment made pursuant
30to a deficiency determination, a determination where no report or
31return has been filed, or a jeopardy determination issued by the
32board.

33(f) This section shall only apply to electronic payments of taxes.

34(g) This section shall be operative only until January 1, 2016.

end delete
35

SEC. 10.  

Section 30281.5 is added to the Revenue and Taxation
36Code
, to read:

37

30281.5.  

(a) If the board finds, taking into account all facts
38and circumstances, that it is inequitable to compute interest at the
39modified adjusted rate per month or fraction thereof, as defined
40in subdivision (b) of Section 6591.5, interest shall be computed at
P9    1the modified adjusted daily rate from the date on which the tax
2was due until the date of payment, if all of the following occur:

3(1) The payment of tax was made one business day after the
4date the tax was due.

5(2) The person was granted relief from all penalties that applied
6to that payment of tax.

7(3) The person files a request for an oral hearing before the
8board.

9(b) For purposes of this section, “modified adjusted daily rate”
10means the modified adjusted rate per annum as defined in
11subdivision (a) of Section 6591.5 determined on a daily basis by
12dividing the modified adjusted rate per annum by 365.

13(c) For purposes of this section, “board” means the members
14of the State Board of Equalization meeting as a public body.

15(d) For purposes of this section, “business day” means any day
16other than a Saturday, Sunday, or any day designated as a state
17holiday.

18(e) This section shall not apply to any payment made pursuant
19to a deficiency determination, a determination where no report or
20return has been filed, or a jeopardy determination issued by the
21board.

22(f) This section shall only apply to electronic payments of taxes.

23

SEC. 11.  

Section 32252.5 of the Revenue and Taxation Code
24 is repealed.

begin delete
25

32252.5.  

(a) If the board finds, taking into account all facts
26and circumstances, that it is inequitable to compute interest at the
27modified adjusted rate per month or fraction thereof, as defined
28in subdivision (b) of Section 6591.5, interest shall be computed at
29the modified adjusted daily rate from the date on which the tax
30 was due until the date of payment, if all of the following occur:

31(1) The payment of tax was made one business day after the
32date the tax was due.

33(2) The person was granted relief from all penalties that applied
34to that payment of tax.

35(3) The person files a request for an oral hearing before the
36board.

37(b) For purposes of this section, “modified adjusted daily rate”
38means the modified adjusted rate per annum as defined in
39subdivision (a) of Section 6591.5 determined on a daily basis by
40dividing the modified adjusted rate per annum by 365.

P10   1(c) For purposes of this section, “board” means the members
2of the State Board of Equalization meeting as a public body.

3(d) For purposes of this section, “business day” means any day
4other than a Saturday, Sunday, or any day designated as a state
5holiday.

6(e) This section shall not apply to any payment made pursuant
7to a deficiency determination, a determination where no return has
8been filed, or a jeopardy determination issued by the board.

9(f) This section shall only apply to electronic payments of taxes.

10(g) This section shall be operative only until January 1, 2016.

end delete
11

SEC. 12.  

Section 32252.5 is added to the Revenue and Taxation
12Code
, to read:

13

32252.5.  

(a) If the board finds, taking into account all facts
14and circumstances, that it is inequitable to compute interest at the
15modified adjusted rate per month or fraction thereof, as defined
16in subdivision (b) of Section 6591.5, interest shall be computed at
17the modified adjusted daily rate from the date on which the tax
18was due until the date of payment, if all of the following occur:

19(1) The payment of tax was made one business day after the
20date the tax was due.

21(2) The person was granted relief from all penalties that applied
22to that payment of tax.

23(3) The person files a request for an oral hearing before the
24board.

25(b) For purposes of this section, “modified adjusted daily rate”
26means the modified adjusted rate per annum as defined in
27subdivision (a) of Section 6591.5 determined on a daily basis by
28dividing the modified adjusted rate per annum by 365.

29(c) For purposes of this section, “board” means the members
30of the State Board of Equalization meeting as a public body.

31(d) For purposes of this section, “business day” means any day
32other than a Saturday, Sunday, or any day designated as a state
33holiday.

34(e) This section shall not apply to any payment made pursuant
35to a deficiency determination, a determination where no return has
36been filed, or a jeopardy determination issued by the board.

37(f) This section shall only apply to electronic payments of taxes.

38

SEC. 13.  

Section 40101.5 of the Revenue and Taxation Code
39 is repealed.

begin delete
P11   1

40101.5.  

(a) If the board finds, taking into account all facts
2and circumstances, that it is inequitable to compute interest at the
3modified adjusted rate per month or fraction thereof, as defined
4in subdivision (b) of Section 6591.5, interest shall be computed at
5the modified adjusted daily rate from the date on which the
6 surcharge was due until the date of payment, if all of the following
7occur:

8(1) The payment of the surcharge was made one business day
9after the date the surcharge was due.

10(2) The person was granted relief from all penalties that applied
11to that payment of the surcharge.

12(3) The person files a request for an oral hearing before the
13board.

14(b) For purposes of this section, “modified adjusted daily rate”
15means the modified adjusted rate per annum as defined in
16subdivision (a) of Section 6591.5 determined on a daily basis by
17dividing the modified adjusted rate per annum by 365.

18(c) For purposes of this section, “board” means the members
19of the State Board of Equalization meeting as a public body.

20(d) For purposes of this section, “business day” means any day
21other than a Saturday, Sunday, or any day designated as a state
22holiday.

23(e) This section shall not apply to any payment made pursuant
24to a deficiency determination, or a determination where no return
25has been filed.

26(f) This section shall only apply to electronic payments of
27surcharges.

28(g) This section shall be operative only until January 1, 2016.

end delete
29

SEC. 14.  

Section 40101.5 is added to the Revenue and Taxation
30Code
, to read:

31

40101.5.  

(a) If the board finds, taking into account all facts
32and circumstances, that it is inequitable to compute interest at the
33modified adjusted rate per month or fraction thereof, as defined
34in subdivision (b) of Section 6591.5, interest shall be computed at
35the modified adjusted daily rate from the date on which the
36surcharge was due until the date of payment, if all of the following
37occur:

38(1) The payment of the surcharge was made one business day
39after the date the surcharge was due.

P12   1(2) The person was granted relief from all penalties that applied
2to that payment of the surcharge.

3(3) The person files a request for an oral hearing before the
4board.

5(b) For purposes of this section, “modified adjusted daily rate”
6means the modified adjusted rate per annum as defined in
7subdivision (a) of Section 6591.5 determined on a daily basis by
8dividing the modified adjusted rate per annum by 365.

9(c) For purposes of this section, “board” means the members
10of the State Board of Equalization meeting as a public body.

11(d) For purposes of this section, “business day” means any day
12other than a Saturday, Sunday, or any day designated as a state
13holiday.

14(e) This section shall not apply to any payment made pursuant
15to a deficiency determination, or a determination where no return
16has been filed.

17(f) This section shall only apply to electronic payments of
18surcharges.

19

SEC. 15.  

Section 41095.5 of the Revenue and Taxation Code
20 is repealed.

begin delete
21

41095.5.  

(a) If the board finds, taking into account all facts
22and circumstances, that it is inequitable to compute interest at the
23modified adjusted rate per month or fraction thereof, as defined
24in subdivision (b) of Section 6591.5, interest shall be computed at
25the modified adjusted daily rate from the date on which the
26 surcharge was due until the date of payment, if all of the following
27occur:

28(1) The payment of the surcharge was made one business day
29after the date the surcharge was due.

30(2) The person was granted relief from all penalties that applied
31to that payment of the surcharge.

32(3) The person files a request for an oral hearing before the
33board.

34(b) For purposes of this section, “modified adjusted daily rate”
35means the modified adjusted rate per annum as defined in
36subdivision (a) of Section 6591.5 determined on a daily basis by
37dividing the modified adjusted rate per annum by 365.

38(c) For purposes of this section, “board” means the members
39of the State Board of Equalization meeting as a public body.

P13   1(d) For purposes of this section, “business day” means any day
2other than a Saturday, Sunday, or any day designated as a state
3holiday.

4(e) This section shall not apply to any payment made pursuant
5to a deficiency determination, or a determination where no return
6has been filed.

7(f) This section shall only apply to electronic payments of
8surcharges.

9(g) This section shall be operative only until January 1, 2016.

end delete
10

SEC. 16.  

Section 41095.5 is added to the Revenue and Taxation
11Code
, to read:

12

41095.5.  

(a) If the board finds, taking into account all facts
13and circumstances, that it is inequitable to compute interest at the
14modified adjusted rate per month or fraction thereof, as defined
15in subdivision (b) of Section 6591.5, interest shall be computed at
16the modified adjusted daily rate from the date on which the
17surcharge was due until the date of payment, if all of the following
18occur:

19(1) The payment of the surcharge was made one business day
20after the date the surcharge was due.

21(2) The person was granted relief from all penalties that applied
22to that payment of the surcharge.

23(3) The person files a request for an oral hearing before the
24board.

25(b) For purposes of this section, “modified adjusted daily rate”
26means the modified adjusted rate per annum as defined in
27subdivision (a) of Section 6591.5 determined on a daily basis by
28dividing the modified adjusted rate per annum by 365.

29(c) For purposes of this section, “board” means the members
30of the State Board of Equalization meeting as a public body.

31(d) For purposes of this section, “business day” means any day
32other than a Saturday, Sunday, or any day designated as a state
33holiday.

34(e) This section shall not apply to any payment made pursuant
35to a deficiency determination, or a determination where no return
36has been filed.

37(f) This section shall only apply to electronic payments of
38surcharges.

39

SEC. 17.  

Section 43155.5 of the Revenue and Taxation Code
40 is repealed.

begin delete
P14   1

43155.5.  

(a) If the board finds, taking into account all facts
2and circumstances, that it is inequitable to compute interest at the
3modified adjusted rate per month or fraction thereof, as defined
4in subdivision (b) of Section 6591.5, interest shall be computed at
5the modified adjusted daily rate from the date on which the tax or
6prepayment was due until the date of payment, if all of the
7following occur:

8(1) The payment of tax or the prepayment was made one
9business day after the date the tax or prepayment was due.

10(2) The person was granted relief from all penalties that applied
11to that payment of tax or prepayment.

12(3) The person files a request for an oral hearing before the
13board.

14(b) For purposes of this section, “modified adjusted daily rate”
15means the modified adjusted rate per annum as defined in
16subdivision (a) of Section 6591.5 determined on a daily basis by
17dividing the modified adjusted rate per annum by 365.

18(c) For purposes of this section, “board” means the members
19of the State Board of Equalization meeting as a public body.

20(d) For purposes of this section, “business day” means any day
21other than a Saturday, Sunday, or any day designated as a state
22holiday.

23(e) This section shall not apply to any payment made pursuant
24to a deficiency determination, a determination where no report or
25return has been filed, or a jeopardy determination issued by the
26board.

27(f) This section shall only apply to electronic payments or
28prepayments of taxes.

29(g) This section shall be operative only until January 1, 2016.

end delete
30

SEC. 18.  

Section 43155.5 is added to the Revenue and Taxation
31Code
, to read:

32

43155.5.  

(a) If the board finds, taking into account all facts
33and circumstances, that it is inequitable to compute interest at the
34modified adjusted rate per month or fraction thereof, as defined
35in subdivision (b) of Section 6591.5, interest shall be computed at
36the modified adjusted daily rate from the date on which the tax or
37prepayment was due until the date of payment, if all of the
38following occur:

39(1) The payment of tax or the prepayment was made one
40business day after the date the tax or prepayment was due.

P15   1(2) The person was granted relief from all penalties that applied
2to that payment of tax or prepayment.

3(3) The person files a request for an oral hearing before the
4board.

5(b) For purposes of this section, “modified adjusted daily rate”
6means the modified adjusted rate per annum as defined in
7subdivision (a) of Section 6591.5 determined on a daily basis by
8dividing the modified adjusted rate per annum by 365.

9(c) For purposes of this section, “board” means the members
10of the State Board of Equalization meeting as a public body.

11(d) For purposes of this section, “business day” means any day
12other than a Saturday, Sunday, or any day designated as a state
13holiday.

14(e) This section shall not apply to any payment made pursuant
15to a deficiency determination, a determination where no report or
16return has been filed, or a jeopardy determination issued by the
17board.

18(f) This section shall only apply to electronic payments or
19prepayments of taxes.

20

SEC. 19.  

Section 45153.5 of the Revenue and Taxation Code
21 is repealed.

begin delete
22

45153.5.  

(a) If the board finds, taking into account all facts
23and circumstances, that it is inequitable to compute interest at the
24modified adjusted rate per month or fraction thereof, as defined
25in subdivision (b) of Section 6591.5, interest shall be computed at
26the modified adjusted daily rate from the date on which the fee
27 was due until the date of payment, if all of the following occur:

28(1) The payment of the fee was made one business day after the
29date the fee was due.

30(2) The person was granted relief from all penalties that applied
31to that fee payment.

32(3) The person files a request for an oral hearing before the
33board.

34(b) For purposes of this section, “modified adjusted daily rate”
35means the modified adjusted rate per annum as defined in
36subdivision (a) of Section 6591.5 determined on a daily basis by
37dividing the modified adjusted rate per annum by 365.

38(c) For purposes of this section, “board” means the members
39of the State Board of Equalization meeting as a public body.

P16   1(d) For purposes of this section, “business day” means any day
2other than a Saturday, Sunday, or any day designated as a state
3holiday.

4(e) This section shall not apply to any payment made pursuant
5to a deficiency determination, a determination where no return has
6been filed or a jeopardy determination issued by the board.

7(f) This section shall only apply to electronic payments of fees.

8(g) This section shall be operative only until January 1, 2016.

end delete
9

SEC. 20.  

Section 45153.5 is added to the Revenue and Taxation
10Code
, to read:

11

45153.5.  

(a) If the board finds, taking into account all facts
12and circumstances, that it is inequitable to compute interest at the
13modified adjusted rate per month or fraction thereof, as defined
14in subdivision (b) of Section 6591.5, interest shall be computed at
15the modified adjusted daily rate from the date on which the fee
16was due until the date of payment, if all of the following occur:

17(1) The payment of the fee was made one business day after the
18date the fee was due.

19(2) The person was granted relief from all penalties that applied
20to that fee payment.

21(3) The person files a request for an oral hearing before the
22board.

23(b) For purposes of this section, “modified adjusted daily rate”
24means the modified adjusted rate per annum as defined in
25subdivision (a) of Section 6591.5 determined on a daily basis by
26dividing the modified adjusted rate per annum by 365.

27(c) For purposes of this section, “board” means the members
28of the State Board of Equalization meeting as a public body.

29(d) For purposes of this section, “business day” means any day
30other than a Saturday, Sunday, or any day designated as a state
31holiday.

32(e) This section shall not apply to any payment made pursuant
33to a deficiency determination, a determination where no return has
34been filed or a jeopardy determination issued by the board.

35(f) This section shall only apply to electronic payments of fees.

36

SEC. 21.  

Section 46154.5 of the Revenue and Taxation Code
37 is repealed.

begin delete
38

46154.5.  

(a) If the board finds, taking into account all facts
39and circumstances, that it is inequitable to compute interest at the
40modified adjusted rate per month or fraction thereof, as defined
P17   1in subdivision (b) of Section 6591.5, interest shall be computed at
2the modified adjusted daily rate from the date on which the fee
3 was due until the date of payment, if all of the following occur:

4(1) The payment of the fee was made one business day after the
5date the fee was due.

6(2) The person was granted relief from all penalties that applied
7to that fee payment.

8(3) The person files a request for an oral hearing before the
9board.

10(b) For purposes of this section, “modified adjusted daily rate”
11means the modified adjusted rate per annum as defined in
12subdivision (a) of Section 6591.5 determined on a daily basis by
13dividing the modified adjusted rate per annum by 365.

14(c) For purposes of this section, “board” means the members
15of the State Board of Equalization meeting as a public body.

16(d) For purposes of this section, “business day” means any day
17other than a Saturday, Sunday, or any day designated as a state
18holiday.

19(e) This section shall not apply to any payment made pursuant
20to a deficiency determination, a determination where no return has
21been filed, or a jeopardy determination issued by the board.

22(f) This section shall only apply to electronic payments of fees.

23(g) This section shall be operative only until January 1, 2016.

end delete
24

SEC. 22.  

Section 46154.5 is added to the Revenue and Taxation
25Code
, to read:

26

46154.5.  

(a) If the board finds, taking into account all facts
27and circumstances, that it is inequitable to compute interest at the
28modified adjusted rate per month or fraction thereof, as defined
29in subdivision (b) of Section 6591.5, interest shall be computed at
30the modified adjusted daily rate from the date on which the fee
31was due until the date of payment, if all of the following occur:

32(1) The payment of the fee was made one business day after the
33date the fee was due.

34(2) The person was granted relief from all penalties that applied
35to that fee payment.

36(3) The person files a request for an oral hearing before the
37board.

38(b) For purposes of this section, “modified adjusted daily rate”
39means the modified adjusted rate per annum as defined in
P18   1subdivision (a) of Section 6591.5 determined on a daily basis by
2dividing the modified adjusted rate per annum by 365.

3(c) For purposes of this section, “board” means the members
4of the State Board of Equalization meeting as a public body.

5(d) For purposes of this section, “business day” means any day
6other than a Saturday, Sunday, or any day designated as a state
7holiday.

8(e) This section shall not apply to any payment made pursuant
9to a deficiency determination, a determination where no return has
10been filed, or a jeopardy determination issued by the board.

11(f) This section shall only apply to electronic payments of fees.

12

SEC. 23.  

Section 50112.1 of the Revenue and Taxation Code
13 is repealed.

begin delete
14

50112.1.  

(a) If the board finds, taking into account all facts
15and circumstances, that it is inequitable to compute interest at the
16modified adjusted rate per month or fraction thereof, as defined
17in subdivision (b) of Section 6591.5, interest shall be computed at
18the modified adjusted daily rate from the date on which the fee
19 was due until the date of payment, if all of the following occur:

20(1) The payment of the fee was made one business day after the
21date the fee was due.

22(2) The person was granted relief from all penalties that applied
23to that fee payment.

24(3) The person files a request for an oral hearing before the
25board.

26(b) For purposes of this section, “modified adjusted daily rate”
27means the modified adjusted rate per annum as defined in
28subdivision (a) of Section 6591.5 determined on a daily basis by
29dividing the modified adjusted rate per annum by 365.

30(c) For purposes of this section, “board” means the members
31of the State Board of Equalization meeting as a public body.

32(d) For purposes of this section, “business day” means any day
33other than a Saturday, Sunday, or any day designated as a state
34holiday.

35(e) This section shall not apply to any payment made pursuant
36to a deficiency determination, a determination where no return has
37been filed or a jeopardy determination issued by the board.

38(f) This section shall only apply to electronic payments of fees.

39(g) This section shall be operative only until January 1, 2016.

end delete
P19   1

SEC. 24.  

Section 50112.1 is added to the Revenue and Taxation
2Code
, to read:

3

50112.1.  

(a) If the board finds, taking into account all facts
4and circumstances, that it is inequitable to compute interest at the
5modified adjusted rate per month or fraction thereof, as defined
6in subdivision (b) of Section 6591.5, interest shall be computed at
7the modified adjusted daily rate from the date on which the fee
8was due until the date of payment, if all of the following occur:

9(1) The payment of the fee was made one business day after the
10date the fee was due.

11(2) The person was granted relief from all penalties that applied
12to that fee payment.

13(3) The person files a request for an oral hearing before the
14board.

15(b) For purposes of this section, “modified adjusted daily rate”
16means the modified adjusted rate per annum as defined in
17subdivision (a) of Section 6591.5 determined on a daily basis by
18dividing the modified adjusted rate per annum by 365.

19(c) For purposes of this section, “board” means the members
20of the State Board of Equalization meeting as a public body.

21(d) For purposes of this section, “business day” means any day
22other than a Saturday, Sunday, or any day designated as a state
23holiday.

24(e) This section shall not apply to any payment made pursuant
25to a deficiency determination, a determination where no return has
26been filed or a jeopardy determination issued by the board.

27(f) This section shall only apply to electronic payments of fees.

28

SEC. 25.  

Section 55042.5 of the Revenue and Taxation Code
29 is repealed.

begin delete
30

55042.5.  

(a) If the board finds, taking into account all facts
31and circumstances, that it is inequitable to compute interest at the
32modified adjusted rate per month or fraction thereof, as defined
33in subdivision (b) of Section 6591.5, interest shall be computed at
34the modified adjusted daily rate from the date on which the fee
35 was due until the date of payment, if all of the following occur:

36(1) The payment of the fee was made one business day after the
37date the fee was due.

38(2) The person was granted relief from all penalties that applied
39to that fee payment.

P20   1(3) The person files a request for an oral hearing before the
2board.

3(b) For purposes of this section, “modified adjusted daily rate”
4means the modified adjusted rate per annum as defined in
5subdivision (a) of Section 6591.5 determined on a daily basis by
6dividing the modified adjusted rate per annum by 365.

7(c) For purposes of this section, “board” means the members
8of the State Board of Equalization meeting as a public body.

9(d) For purposes of this section, “business day” means any day
10other than a Saturday, Sunday, or any day designated as a state
11holiday.

12(e) This section shall not apply to any payment made pursuant
13to a deficiency determination, a determination where no return has
14been filed or a jeopardy determination issued by the board.

15(f) This section shall only apply to electronic payments of fees.

16(g) This section shall be operative only until January 1, 2016.

end delete
17

SEC. 26.  

Section 55042.5 is added to the Revenue and Taxation
18Code
, to read:

19

55042.5.  

(a) If the board finds, taking into account all facts
20and circumstances, that it is inequitable to compute interest at the
21modified adjusted rate per month or fraction thereof, as defined
22in subdivision (b) of Section 6591.5, interest shall be computed at
23the modified adjusted daily rate from the date on which the fee
24was due until the date of payment, if all of the following occur:

25(1) The payment of the fee was made one business day after the
26date the fee was due.

27(2) The person was granted relief from all penalties that applied
28to that fee payment.

29(3) The person files a request for an oral hearing before the
30board.

31(b) For purposes of this section, “modified adjusted daily rate”
32means the modified adjusted rate per annum as defined in
33subdivision (a) of Section 6591.5 determined on a daily basis by
34dividing the modified adjusted rate per annum by 365.

35(c) For purposes of this section, “board” means the members
36of the State Board of Equalization meeting as a public body.

37(d) For purposes of this section, “business day” means any day
38other than a Saturday, Sunday, or any day designated as a state
39holiday.

P21   1(e) This section shall not apply to any payment made pursuant
2to a deficiency determination, a determination where no return has
3been filed or a jeopardy determination issued by the board.

4(f) This section shall only apply to electronic payments of fees.

5

SEC. 27.  

Section 60207.5 of the Revenue and Taxation Code
6 is repealed.

begin delete
7

60207.5.  

(a) If the board finds, taking into account all facts
8and circumstances, that it is inequitable to compute interest at the
9modified adjusted rate per month or fraction thereof, as defined
10in subdivision (b) of Section 6591.5, interest shall be computed at
11the modified adjusted daily rate from the date on which the tax
12 was due until the date of payment, if all of the following occur:

13(1) The payment of tax was made one business day after the
14date the tax was due.

15(2) The person was granted relief from all penalties that applied
16to that payment of tax.

17(3) The person files a request for an oral hearing before the
18board.

19(b) For purposes of this section, “modified adjusted daily rate”
20means the modified adjusted rate per annum as defined in
21subdivision (a) of Section 6591.5 determined on a daily basis by
22dividing the modified adjusted rate per annum by 365.

23(c) For purposes of this section, “board” means the members
24of the State Board of Equalization meeting as a public body.

25(d) For purposes of this section, “business day” means any day
26other than a Saturday, Sunday, or any day designated as a state
27holiday.

28(e) This section shall not apply to any payment made pursuant
29to a deficiency determination, a determination where no return has
30been filed or a jeopardy determination issued by the board.

31(f) This section shall only apply to electronic payments of taxes.

32(g) This section shall be operative only until January 1, 2016.

end delete
33

SEC. 28.  

Section 60207.5 is added to the Revenue and Taxation
34Code
, to read:

35

60207.5.  

(a) If the board finds, taking into account all facts
36and circumstances, that it is inequitable to compute interest at the
37modified adjusted rate per month or fraction thereof, as defined
38in subdivision (b) of Section 6591.5, interest shall be computed at
39the modified adjusted daily rate from the date on which the tax
40was due until the date of payment, if all of the following occur:

P22   1(1) The payment of tax was made one business day after the
2date the tax was due.

3(2) The person was granted relief from all penalties that applied
4to that payment of tax.

5(3) The person files a request for an oral hearing before the
6board.

7(b) For purposes of this section, “modified adjusted daily rate”
8means the modified adjusted rate per annum as defined in
9subdivision (a) of Section 6591.5 determined on a daily basis by
10dividing the modified adjusted rate per annum by 365.

11(c) For purposes of this section, “board” means the members
12of the State Board of Equalization meeting as a public body.

13(d) For purposes of this section, “business day” means any day
14other than a Saturday, Sunday, or any day designated as a state
15holiday.

16(e) This section shall not apply to any payment made pursuant
17to a deficiency determination, a determination where no return has
18been filed or a jeopardy determination issued by the board.

19(f) This section shall only apply to electronic payments of taxes.



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