BILL ANALYSIS �
AB 2225
Page 1
Date of Hearing: April 23, 2012
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Henry T. Perea, Chair
AB 2225 (Perea) - As Amended: March 29, 2012
Majority vote. Fiscal Committee
SUBJECT : State Board of Equalization: erroneous charges
SUMMARY : Authorizes a taxpayer to file a reimbursement claim
with the State Board of Equalization (BOE) for bank charges and
other reasonable third-party check charge fees incurred as a
direct result of an erroneous processing action or erroneous
collection action by the BOE. Specifically, this bill :
1)Adds erroneous processing and collection actions to the list
of BOE actions giving rise to a claim for reimbursement of
bank charges and third-party check charge fees incurred by a
taxpayer.
2)Grants the BOE discretion to extend the 90-day filing period
for claims seeking reimbursement of bank charges and
third-party check charge fees incurred by a taxpayer as the
direct result of an erroneous BOE action
EXISTING LAW : Sales and Use Tax laws provide that a taxpayer
may file a claim with the BOE for the reimbursement of bank
charges and any other reasonable third-party check charge fees
incurred as a direct result of an erroneous levy or notice to
withhold, erroneous processing action, or erroneous collection
action by the BOE. Such claims must be filed within 90 days
from the date of the erroneous BOE action.
FISCAL EFFECT : The BOE estimates negligible revenue losses.
COMMENTS :
1)Proponents of this bill note the following:
Current law recognizes the importance of making taxpayers
whole for BOE errors because reimbursement is authorized in
instances where the BOE issues an erroneous levy or notice
to withhold. This measure would ensure that taxpayers are
also held harmless when other BOE errors occur. This
AB 2225
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approach is not only fair, but helps promote taxpayer trust
in a complicated system that often is less than friendly to
taxpayers.
2)Committee Staff Comments:
a) What Does This Bill Do? : This bill grants the BOE
discretion to extend the 90-day filing period for claims
seeking reimbursement of bank charges and third-party check
charge fees incurred by a taxpayer as the direct result of
an erroneous BOE action. This bill also adds erroneous
processing and collection actions to the list of BOE
actions giving rise to a claim for reimbursement of bank
charges and third-party check charge fees incurred by a
taxpayer. Committee staff believes that, as a matter of
basic fairness, it is advisable to expand the right of
taxpayers to seek reimbursement for charges incurred due to
a BOE mistake.
REGISTERED SUPPORT / OPPOSITION :
Support
California Taxpayers Association
California Chamber of Commerce
Opposition
None on file
Analysis Prepared by : Rosailda Perez / Oksana Jaffe / REV. &
TAX. / (916) 319-2098