BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2225|
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THIRD READING
Bill No: AB 2225
Author: Perea (D)
Amended: 7/6/12 in Senate
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 8-0, 7/3/12
AYES: Wolk, Dutton, DeSaulnier, Fuller, Hernandez, Kehoe,
La Malfa, Liu
NO VOTE RECORDED: Yee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 73-0, 5/10/12 (Consent) - See last page
for vote
SUBJECT : Board of Equalization: erroneous charges
SOURCE : Author
DIGEST : This bill authorizes a taxpayer to file a
reimbursement claim with the Board of Equalization (BOE)
for bank charges and check fees incurred as a direct result
of erroneous processing.
ANALYSIS : The 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
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AB 2225
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BOE. Such claims must be filed within 90 days from the
date of the erroneous BOE action.
This bill adds two provisions that allow BOE to provide
administrative relief to taxpayers for bank and third party
fees:
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.
Comments
According to the author's office, existing law allows
taxpayers to file a claim for reimbursement of bank fees
and third party charges when the BOE takes erroneous
processing or collection actions in regards to Sales and
Use Tax, but in other circumstances taxpayers are
responsible for paying those fees, leaving the taxpayer
liable for BOE mistakes. BOE can take action, such as a
levy or notice to withhold, against taxpayers that have
been determined to be delinquent in their payments.
Unfortunately, this action is sometimes in error. It is
only fair and equitable to reimburse taxpayers for bank and
third party check charges when those charges are a direct
result of a BOE error, and not the fault of the taxpayer.
The proposed change is consistent with the Sales and Use
Tax Law, and the intent of the original legislation that
authorized the BOE to reimburse taxpayers for such charges
stemming from BOE errors.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/7/12)
California Chamber of Commerce
California Taxpayers Association
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ASSEMBLY FLOOR : 73-0, 5/10/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines,
Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman,
Halderman, Hall, Harkey, Hayashi, Roger Hern�ndez, Hill,
Huber, Hueso, Huffman, Jones, Knight, Lara, Logue, Bonnie
Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Pan, Perea,
Portantino, Silva, Skinner, Smyth, Solorio, Swanson,
Torres, Valadao, Wagner, Wieckowski, Williams, Yamada,
John A. P�rez
NO VOTE RECORDED: Cook, Fletcher, Furutani, Jeffries,
Norby, Olsen, V. Manuel P�rez
AGB:m 8/7/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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