BILL NUMBER: AB 2556 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member Fuller
FEBRUARY 19, 2010
An act to 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. An act to amend Section 6593.5
of the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2556, as amended, Fuller. State Board of Equalization:
administration: interest waiver: foreign purchases .
The Sales and Use Tax Law imposes a tax on retailers measured by
the gross receipts from the sale of tangible personal property sold
at retail in this state, or on the storage, use, or other consumption
in this state of tangible personal property purchased from a
retailer for storage, use, or other consumption in this state. That
law exempts from use tax, the storage, use, or the consumption of the
first $800 of tangible personal property that is purchased in a
foreign county and hand-carried into this state within a 30- day
period. That law requires the payment of interest at a specified rate
on a failure to timely pay taxes, from the date on which those
amounts became due and payable to the state until the date of
payment. That law authorizes the State Board of Equalization, in its
discretion, to relieve all or any part of interest imposed under
specified circumstances.
This bill would allow the board to relieve all or any part of the
interest imposed on the failure to timely pay use tax on the storage,
use, or other consumption of tangible personal property, where the
board discovered the nonpayment as a result of obtaining information
with respect to the liability from United States Customs Service, if
the tax is remitted within 90 days of notification by the board.
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.
This bill would allow 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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6593.5 of the
Revenue and Taxation Code is amended to read:
6593.5. (a) The board, in its discretion, may relieve all or any
part of the interest imposed on a person by this part under the
following circumstances:
(1) Where the failure to pay tax is due in whole or in part to an
unreasonable error or delay by an employee of the board acting in his
or her official capacity.
(2) Where failure to pay use tax on a vehicle or vessel registered
with the Department of Motor Vehicles was the direct result of an
error by the Department of Motor Vehicles in calculating the use tax.
(3) Where use tax is remitted to the board within 90 days of the
board notifying the taxpayer of a nonpayment of use tax, which
notification is made as a result of the board obtaining information
with respect to the liability from the United States Customs Service.
(b) For purposes of this section, an error or delay shall be
deemed to have occurred only if no significant aspect of the error or
delay is attributable to an act of, or a failure to act by, the
taxpayer.
(c) Any person seeking relief under this section shall file with
the board a statement under penalty of perjury setting forth the
facts on which the claim for relief is based and any other
information which the board may require.
(d) The board may grant relief only for interest imposed on tax
liabilities that arise during taxable periods commencing on or after
July 1, 1999.
SECTION 1. It is the intent of the Legislature
that California's penalty and interest provisions foster and maintain
the current high level of compliance, provide appropriate costs and
sanctions for noncompliance, and provide a reasonable and
administrable degree of latitude for individual taxpayer
circumstances and errors. It is the intent of the Legislature in
enacting this act, that the State Board of Equalization strictly and
narrowly apply its provisions on a case-by-case basis and only in
special circumstances.
SEC. 2. Section 6591.6 is added to the Revenue
and Taxation Code, to read:
6591.6. (a) If the board finds, taking into account all facts and
circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the tax or
prepayment was due until the date of payment, if all of the following
occur:
(1) The payment of tax or the prepayment was made one business day
after the date the tax or prepayment was due.
(2) The person was granted relief from all penalties that applied
to that payment of tax or prepayment.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section "business day," means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, a determination where no return has been
filed, or a jeopardy determination issued by the board.
SEC. 3. Section 7655.5 is added to the Revenue
and Taxation Code, to read:
7655.5. (a) If the board finds, taking into account all facts and
circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the tax or
prepayment was due until the date of payment, if all of the following
occur:
(1) The payment of tax or the prepayment was made one business day
after the date the tax or prepayment was due.
(2) The person was granted relief from all penalties that applied
to that payment of tax or prepayment.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section "business day," means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, a determination where no return has been
filed, or a jeopardy determination issued by the board.
SEC. 4. Section 8876.5 is added to the Revenue
and Taxation Code, to read:
8876.5. (a) If the board finds, taking into account all facts and
circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the tax was due
until the date of payment, if all of the following occur:
(1) The payment of tax was made one business day after the date
the tax was due.
(2) The person was granted relief from all penalties that applied
to that payment of tax.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section "business day," means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, a determination where no return has been
filed, or a jeopardy determination issued by the board.
SEC. 5. Section 12631.5 is added to the Revenue
and Taxation Code, to read:
12631.5. (a) If the board finds, taking into account all facts
and circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the tax or
prepayment was due until the date of payment, if all of the following
occur:
(1) The payment of tax or prepayment was made one business day
after the date the tax or prepayment was due.
(2) The person was granted relief from all penalties that applied
to that payment of tax or prepayment.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section "business day," means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, or a determination where no return has
been filed.
SEC. 6. Section 30281.5 is added to the Revenue
and Taxation Code, to read:
30281.5. (a) If the board finds, taking into account all facts
and circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the tax was due
until the date of payment, if all of the following occur:
(1) The payment of tax was made one business day after the date
the tax was due.
(2) The person was granted relief from all penalties that applied
to that payment of tax.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section "business day," means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, a determination where no report or return
has been filed, or a jeopardy determination issued by the board.
SEC. 7. Section 32252.5 is added to the Revenue
and Taxation Code, to read:
32252.5. (a) If the board finds, taking into account all facts
and circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the tax was due
until the date of payment, if all of the following occur:
(1) The payment of tax was made one business day after the date
the tax was due.
(2) The person was granted relief from all penalties that applied
to that payment of tax.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section "business day," means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, a determination where no return has been
filed, or a jeopardy determination issued by the board.
SEC. 8. Section 40101.5 is added to the Revenue
and Taxation Code, to read:
40101.5. (a) If the board finds, taking into account all facts
and circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the surcharge was
due until the date of payment, if all of the following occur:
(1) The payment of the surcharge was made one business day after
the date the surcharge was due.
(2) The person was granted relief from all penalties that applied
to that payment of the surcharge.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section "business day," means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, or a determination where no return has
been filed.
SEC. 9. Section 41095.5 is added to the Revenue
and Taxation Code, to read:
41095.5. (a) If the board finds, taking into account all facts
and circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the surcharge was
due until the date of payment, if all of the following occur:
(1) The payment of the surcharge was made one business day after
the date the surcharge was due.
(2) The person was granted relief from all penalties that applied
to that payment of the surcharge.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section "business day," means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, or a determination where no return has
been filed.
SEC. 10. Section 43155.5 is added to the
Revenue and Taxation Code, to read:
43155.5. (a) If the board finds, taking into account all facts
and circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the tax or
prepayment was due until the date of payment, if all of the following
occur:
(1) The payment of tax or the prepayment was made one business day
after the date the tax or prepayment was due.
(2) The person was granted relief from all penalties that applied
to that payment of tax or prepayment.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section "business day," means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, a determination where no report or return
has been filed, or a jeopardy determination issued by the board.
SEC. 11. Section 45153.5 is added to the
Revenue and Taxation Code, to read:
45153.5. (a) If the board finds, taking into account all facts
and circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the fee was due
until the date of payment, if all of the following occur:
(1) The payment of the fee was made one business day after the
date the fee was due.
(2) The person was granted relief from all penalties that applied
to that fee payment.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section "business day," means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, a determination where no return has been
filed or a jeopardy determination issued by the board.
SEC. 12. Section 46154.5 is added to the
Revenue and Taxation Code, to read:
46154.5. (a) If the board finds, taking into account all facts
and circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the fee was due
until the date of payment, if all of the following occur:
(1) The payment of the fee was made one business day after the
date the fee was due.
(2) The person was granted relief from all penalties that applied
to that fee payment.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section "business day," means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, a determination where no return has been
filed, or a jeopardy determination issued by the board.
SEC. 13. Section 50112.1 is added to the
Revenue and Taxation Code, to read:
50112.1. (a) If the board finds, taking into account all facts
and circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the fee was due
until the date of payment, if all of the following occur:
(1) The payment of the fee was made one business day after the
date the fee was due.
(2) The person was granted relief from all penalties that applied
to that fee payment.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section "business day," means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, a determination where no return has been
filed or a jeopardy determination issued by the board.
SEC. 14. Section 55042.5 is added to the
Revenue and Taxation Code, to read:
55042.5. (a) If the board finds, taking into account all facts
and circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the fee was due
until the date of payment, if all of the following occur:
(1) The payment of the fee was made one business day after the
date the fee was due.
(2) The person was granted relief from all penalties that applied
to that fee payment.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section "business day," means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, a determination where no return has been
filed or a jeopardy determination issued by the board.
SEC. 15. Section 60207.5 is added to the
Revenue and Taxation Code, to read:
60207.5. (a) If the board finds, taking into account all facts
and circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the tax was due
until the date of payment, if all of the following occur:
(1) The payment of tax was made one business day after the date
the tax was due.
(2) The person was granted relief from all penalties that applied
to that payment of tax.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section "business day," means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, a determination where no return has been
filed or a jeopardy determination issued by the board.