BILL NUMBER: AB 2688	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Revenue and Taxation (Perea (Chair),
Beall, Charles Calderon, Cedillo, Fuentes, and Gordon)

                        MARCH 12, 2012

   An act to amend Sections 6055, 6203.5, 6355, 7096, 7261, 7262,
9274, 30459.4, 32474, 40214, 41174, 43525, 45870, 46625, 50156.14,
55335, and 60633.1 of the Revenue and Taxation Code, relating to
taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2688, as introduced, Committee on Revenue and Taxation. State
Board of Equalization: worthless accounts: bullion and coins:
transaction and use taxes: erroneous charges.
   Existing sales and use tax laws authorize a deduction or refund of
tax in the case of worthless and written-off accounts held by a
retailer or lender under specified circumstances, which include
establishing a proper election by filing an election with the State
Board of Equalization before claiming the deduction or refund.
   This bill would instead require the proper election to be
established by the retailer and lender preparing and retaining an
election form that would not need to be prepared or retained prior to
claiming any deduction or refund.
   Existing sales and use tax laws impose 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 provides various exemptions from those taxes, including an
exemption for the gross receipts from the sales in bulk of monetized
bullion, nonmonetized gold and silver bullion, and numismatic coins,
and the storage, use, or other consumption of those bullion and
coins, as provided, and requires the State Board of Equalization to
adjust the initial bulk threshold amount on or before September 1.
   This bill would change the adjustment date to October 1.
   Existing laws authorize districts, as specified, to levy,
increase, or extend a transactions and use tax in accordance with the
Transactions and Use Tax Law. The Transactions and Use Tax Law
requires that the ordinance proposing the tax include certain
provisions, including a provision imposing a transactions and use tax
at a rate of 0.25%, or a multiple thereof.
   This bill would instead authorize the levy, increase, or extension
of a transactions and use tax at a rate of 0.125%, or a multiple
thereof.
   Existing law requires the State Board of Equalization to
administer the Sales and Use 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, and Diesel Fuel Tax Law, and authorizes the board to
undertake collection action on delinquent accounts, including issuing
a levy or notice to withhold. Under existing sales and use tax laws,
a taxpayer may file a claim with the board for reimbursement of bank
charges or any other reasonable 3rd-party check charge fees incurred
by the taxpayer as a direct result of an erroneous levy or notice to
withhold by the board or erroneous processing or collection action,
within 90 days of the date of the board action. Under the other laws,
a taxpayer may only file a claim for those charges or fees incurred
as a direct result of an erroneous levy or notice to withhold.
   This bill would extend to those other laws, the authorization for
a taxpayer to also file a reimbursement claim with the board for bank
charges and other reasonable 3rd-party check charge fees incurred as
a direct result of an erroneous processing action or erroneous
collection action by the board within 90 days of the board action.
This bill would, under those other laws and the sales and use tax
laws, allow the board to extend the 90-day filing period for
reasonable cause.
   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 6055 of the Revenue and Taxation Code is
amended to read:
   6055.  (a) A retailer is relieved from liability for sales tax
that became due and payable, insofar as the measure of the tax is
represented by accounts that have been found to be worthless and
charged off for income tax purposes by the retailer or, if the
retailer is not required to file income tax returns, charged off in
accordance with generally accepted accounting principles. A retailer
that has previously paid the tax may, under rules and regulations
prescribed by the board, take as a deduction the amount found
worthless and charged off by the retailer. If these accounts are
thereafter in whole or in part collected by the retailer, the amount
collected shall be included in the first return filed after the
collection and the tax shall be paid with the return. For purposes of
this subdivision, the term "retailer" shall include any entity
affiliated with the retailer under Section 1504 of Title 26 of the
United States Code.
   (b) (1) In the case of accounts held by a lender, a retailer or
lender  who   that  makes a proper election
under paragraph (4) shall be entitled to a deduction or refund of
the tax that the retailer has previously reported and paid if all of
the following conditions are met:
   (A) A deduction was not previously claimed or allowed on any
portion of the accounts.
   (B) The accounts have been found worthless and written off by the
lender in accordance with the requirements of subdivision (a).
   (C) The contract between the retailer and the lender contains an
irrevocable relinquishment of all rights to the account from the
retailer to the lender.
   (D) The retailer remitted the tax on or after January 1, 2000.
   (E) The party electing to claim the deduction or refund under
paragraph (4) files a claim in a manner prescribed by the board.
   (2) If the retailer or the lender thereafter collects in whole or
in part any accounts, one of the following shall apply:
   (A) If the retailer is entitled to the deduction or refund under
the election specified in paragraph (4), the retailer shall include
the amount collected in its first return filed after the collection
and pay tax on that amount with the return.
   (B) If the lender is entitled to the deduction or refund under the
election specified in paragraph (4), the lender shall pay the tax to
the board in accordance with Section 6451.
   (3) For purposes of this subdivision, the term "lender" means any
of the following:
   (A) Any person  who   that  holds a
retail account which that person purchased directly from a retailer
who reported the tax.
   (B) Any person  who   that  holds a
retail account pursuant to that person's contract directly with the
retailer  who   that  reported the tax.
   (C) Any person  who   that  is either an
affiliated entity, under Section 1504 of Title 26 of the United
States Code, of a person described in subparagraph (A) or (B), or an
assignee of a person described in subparagraph (A) or (B).
   (4)  Prior to claiming any deduction or refund under this
subdivision,   For purposes of this section, a "proper
election" shall be established when  the retailer  who
  that  reported the tax and the lender 
shall  prepare and retain an election  form  ,
signed by both parties, designating which party is entitled to claim
the deduction or refund. This election may not be amended or revoked
unless a new election, signed by both parties, is prepared and
retained by the retailer and the lender.
  SEC. 2.  Section 6203.5 of the Revenue and Taxation Code is amended
to read:
   6203.5.  (a) A retailer is relieved from liability to collect use
tax that became due and payable, insofar as the measure of the tax is
represented by accounts that have been found to be worthless and
charged off for income tax purposes by the retailer or, if the
retailer is not required to file income tax returns, charged off in
accordance with generally accepted accounting principles. A retailer
that has previously paid the amount of the tax may, under rules and
regulations prescribed by the board, take as a deduction the amount
found worthless and charged off by the retailer. If these accounts
are thereafter in whole or in part collected by the retailer, the
amount collected shall be included in the first return filed after
the collection and the amount of the tax shall be paid with the
return. For purposes of this subdivision, the term "retailer" shall
include any entity affiliated with the retailer under Section 1504 of
Title 26 of the United States Code.
   (b) (1) In the case of accounts held by a lender, a retailer or
lender  who   that  makes a proper election
under paragraph (4) shall be entitled to a deduction or refund of
the tax that the retailer has previously reported and paid if all of
the following conditions are met:
   (A) A deduction was not previously claimed or allowed on any
portion of the accounts.
   (B) The accounts have been found worthless and written off by the
lender in accordance with the requirements of subdivision (a).
   (C) The contract between the retailer and the lender contains an
irrevocable relinquishment of all rights to the account from the
retailer to the lender.
   (D) The retailer remitted the tax on or after January 1, 2000.
   (E) The party electing to claim the deduction or refund under
paragraph (4) files a claim in a manner prescribed by the board.
   (2) If the retailer or the lender thereafter collects in whole or
in part any accounts, one of the following shall apply:
   (A) If the retailer is entitled to the deduction or refund under
the election specified in paragraph (4), the retailer shall include
the amount collected in its first return filed after the collection
and pay tax on that amount with the return.
   (B) If the lender is entitled to the deduction or refund under the
election specified in paragraph (4), the lender shall pay the tax to
the board in accordance with Section 6451.
   (3) For purposes of this subdivision, the term "lender" means any
of the following:
   (A) Any person  who   that  holds a
retail account which that person purchased directly from a retailer
who reported the tax.
   (B) Any person  who   that  holds a
retail account pursuant to that person's contract directly with the
retailer  who   that  reported the tax.
   (C) Any person  who   that  is either an
affiliated entity, under Section 1504 of Title 26 of the United
States Code, of a person described in subparagraph (A) or (B), or an
assignee of a person described in subparagraph (A) or (B).
   (4)  Prior to claiming any deduction or refund under this
subdivision,   For   purposes of this section,
a "proper election" shall be established when    the
retailer  who   that  reported the tax and
the lender  shall  prepare and retain an election
 form  , signed by both parties, designating which party is
entitled to claim the deduction or refund. This election may not be
amended or revoked unless a new election, signed by both parties, is
prepared and retained by the retailer and the lender.
  SEC. 3.  Section 6355 of the Revenue and Taxation Code is amended
to read:
   6355.  (a) There are exempted from the taxes imposed by this part
the gross receipts from the sale in bulk of monetized bullion,
nonmonetized gold or silver bullion, and numismatic coins that are
substantially equivalent to transactions in securities or commodities
through a national securities or commodities exchange and the
storage, use, or other consumption in this state of monetized
bullion, nonmonetized gold or silver bullion, and numismatic coins so
sold.
   (b) (1) A sale in bulk, for purposes of this section, shall be
deemed to have occurred if the amount of monetized bullion,
nonmonetized gold or silver bullion, and numismatic coins sold in the
transaction totals, in market value, the sum of one thousand dollars
($1,000) or more, or its equivalent.
   (2) The board shall adjust the one thousand dollar ($1,000) amount
specified in paragraph (1) as follows:
   (A) On or before September 1, 1994, and on or before each 
September   October  1 of each year thereafter,
the board shall multiply the amount applicable for the current
calendar year by the inflation factor adjustment determined by the
Franchise Tax Board pursuant to subdivision (h) of Section 17041, the
resulting amount to be the applicable amount for the succeeding
calendar year. The applicable amount shall be operative as an
adjustment of the amount specified in paragraph (1) only when the
applicable amount computed is equal to or exceeds a new operative
threshold, as defined in subparagraph (C).
   (B) When the applicable amount equals or exceeds an operative
threshold specified in subparagraph (C), the resulting applicable
amount, rounded to the nearest multiple of five hundred dollars
($500), shall be operative for purposes of paragraph (1) beginning
January 1 of the succeeding calendar year.
   (C) For purposes of this paragraph, "operative threshold" means an
amount that exceeds by at least five hundred dollars ($500), the
greater of either the amount specified in paragraph (1) or the amount
computed pursuant to subparagraphs (A) and (B) as the operative
adjustment to the amount specified in paragraph (1).
   (c) "Monetized bullion," for purposes of this section, means coins
or other forms of money manufactured of gold, silver, or other metal
and heretofore, now, or hereafter used as a medium of exchange under
the laws of this state, the United States, or any foreign nation.
"Monetized bullion," for purposes of this section, also means gold
medallions struck under authority of the American Arts Gold Medallion
Act (Title IV of Public Law 95-630).
   (d) A sale of monetized bullion, nonmonetized gold or silver
bullion, or numismatic coins, for purposes of this section, shall be
deemed to be substantially equivalent to a transaction in securities
or commodities through a national securities or commodities exchange,
if the sale is by or through a person registered pursuant to the
Commodity Exchange Act (7 U.S.C. Sec. 1 et seq.) or not required to
be registered under the Commodity Exchange Act.
  SEC. 4.  Section 7096 of the Revenue and Taxation Code is amended
to read:
   7096.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold, erroneous processing action,
or erroneous collection action by the board. Bank and third-party
charges include a financial institution's or third party's customary
charge for complying with the levy or notice to withhold instructions
and reasonable charges for overdrafts that are a direct consequence
of the erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action. The charges are those paid by
the taxpayer and not waived or reimbursed by the financial
institution or third party. Each claimant applying for reimbursement
shall file a claim with the board that shall be in the form as may be
prescribed by the board. In order for the board to grant a claim,
the board shall determine that both of the following conditions have
been satisfied:
   (1) The erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action was caused by board error.
   (2) Prior to the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action, the taxpayer
responded to all contacts by the board and provided the board with
any requested information or documentation sufficient to establish
the taxpayer's position. This provision may be waived by the board
for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action.  This 90-day
filing period may be extended by the board for reasonable cause.
 Within 30 days from the date the claim is received, the board
shall respond to the claim. If the board denies the claim, the
taxpayer shall be notified in writing of the reason or reasons for
the denial of the claim.
  SEC. 5.  Section 7261 of the Revenue and Taxation Code is amended
to read:
   7261.  The transactions tax portion of any transactions and use
taxes ordinance adopted under this part shall be imposed for the
privilege of selling tangible personal property at retail, and shall
include provisions in substance as follows:
   (a) A provision imposing a tax for the privilege of selling
tangible personal property at retail upon every retailer in the
district at a rate of  one-quarter   one-eighth
 of 1 percent, or a multiple thereof, of the gross receipts of
the retailer from the sale of all tangible personal property sold by
that person at retail in the district.
   (b) Provisions identical to those contained in Part 1 (commencing
with Section 6001), insofar as they relate to sales taxes and are not
inconsistent with this part, except that the name of the district as
the taxing agency shall be substituted for that of the state and
that an additional transactor's permit shall not be required if a
seller's permit has been or is issued to the transactor under Section
6067.
   (c) A provision that all amendments subsequent to the effective
date of this part to Part 1 (commencing with Section 6001) relating
to sales tax and not inconsistent with this part shall automatically
become a part of the transactions and use taxes ordinance. However,
no amendment shall operate so as to affect the rate of tax imposed by
the district's board.
   (d) A provision that the amount subject to tax shall not include
the amount of sales tax or use tax imposed by the State of California
or by any city, city and county, or county pursuant to the
Bradley-Burns Uniform Local Sales and Use Tax Law, or the amount of
any state-administered transactions or use tax.
   (e) A provision that there are exempted from the tax the gross
receipts from the sale of tangible personal property, other than fuel
or petroleum products, to operators of aircraft to be used or
consumed principally outside the county in which the sale is made and
directly and exclusively in the use of the aircraft as common
carriers of persons or property under the authority of the laws of
this state, the United States, or any foreign government.
   (f) A provision that sales of property to be used outside the
district which are shipped to a point outside the district, pursuant
to the contract of sale, by delivery to that point by the retailer or
his or her agent, or by delivery by the retailer to a carrier for
shipment to a consignee at such point, are exempt from the tax.
   For purposes of this section, "delivery" of vehicles subject to
registration pursuant to Chapter 1 (commencing with Section 4000) of
Division 3 of the Vehicle Code, aircraft licensed in compliance with
Section 21411 of the Public Utilities Code, and undocumented vessels
registered under Division 3.5 (commencing with Section 9840) of the
Vehicle Code shall be satisfied by registration to an out-of-district
address and by a declaration under penalty of perjury, signed by the
buyer, stating that the address is, in fact, his or her principal
place of residence.
   "Delivery" of commercial vehicles shall be satisfied by
registration to a place of business out of district and a declaration
under penalty of perjury, signed by the buyer, that the vehicle will
be operated from that address.
   (g) A provision that the sale of tangible personal property is
exempt from tax if the seller is obligated to furnish the property
for a fixed price pursuant to a contract entered into prior to the
operative date of the ordinance. A lease of tangible personal
property which is a continuing sale of that property is exempt from
tax for any period of time for which the lessor is obligated to lease
the property for an amount fixed by the lease prior to the operative
date of the ordinance. For the purposes of this subdivision, the
sale or lease of tangible personal property shall be deemed not to be
obligated pursuant to a contract or lease for any period of time for
which any party to the contract or lease has the unconditional right
to terminate the contract or lease upon notice, whether or not that
right is exercised.
  SEC. 6.  Section 7262 of the Revenue and Taxation Code is amended
to read:
   7262.  The use tax portion of any transactions and use tax
ordinance adopted under this part shall impose a complementary tax
upon the storage, use, or other consumption in the district of
tangible personal property purchased from any retailer for storage,
use, or other consumption in the district. The tax shall be at a rate
of  one-quarter   one-eighth  of 1
percent, or a multiple thereof, of the sales price of the property
whose storage, use, or other consumption is subject to the tax, and
the ordinance shall include provisions in substance as follows:
   (a) Provisions identical to those contained in Part 1 (commencing
with Section 6001), insofar as they relate to use taxes and are not
inconsistent with this part, except that the name of the district as
the taxing agency shall be substituted for that of the state. The
name of the district shall be substituted for the word "state" in the
phrase "retailer engaged in business in this state" in Section 6203
and in the definition of that phrase.
   The following additional provisions shall be included:
   (1) Except as provided in paragraph (2), a retailer engaged in
business in the district shall not be required to collect use tax
from the purchaser of tangible personal property, unless the retailer
ships or delivers the property into the district or participates
within the district in making the sale of the property, including,
but not limited to, soliciting or receiving the order, either
directly or indirectly, at a place of business of the retailer in the
district or through any representative, agent, canvasser, solicitor,
subsidiary, or person in the district under the authority of the
retailer.
   (2) "A retailer engaged in business in the district" shall also
include any retailer of any of the following: vehicles subject to
registration pursuant to Chapter 1 (commencing with Section 4000) of
Division 3 of the Vehicle Code, aircraft licensed in compliance with
Section 21411 of the Public Utilities Code, or undocumented vessels
registered under Division 3.5 (commencing with Section 9840) of the
Vehicle Code. That retailer shall be required to collect use tax from
any purchaser  who   that  registers or
licenses the vehicle, vessel, or aircraft at an address in the
district.
   (b) A provision that all amendments to the provisions of Part 1
(commencing with Section 6001) relating to the use tax and not
inconsistent with this part shall automatically become a part of the
ordinance. However, no amendment shall operate so as to affect the
rate of tax imposed by the district's board.
   (c) A provision that the amount subject to tax shall not include
the amount of any sales tax or use tax imposed by the State of
California or by any city, city and county, or county pursuant to the
Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5
(commencing with Section 7200)) or the amount of any
state-administered transactions or use tax.
   (d) A provision that any person subject to a use tax under an
ordinance adopted pursuant to this part shall be entitled to credit
against that tax or any transactions tax, or to reimbursement for a
transactions tax, paid to a district or retailer in a district
imposing a transactions and use tax pursuant to this part.
   (e) A provision that, in addition to the exemptions provided in
Sections 6366 and 6366.1, the storage, use, or other consumption of
tangible personal property, other than fuel or petroleum products,
purchased by operators of aircraft, and used or consumed by the
operators directly and exclusively in the use of the aircraft as
common carriers of persons or property for hire or compensation under
a certificate of public convenience and necessity issued pursuant to
the laws of this state, the United States, or any foreign
government, is exempt from the use tax.
   (f) A provision that the storage, use, or other consumption in the
district of tangible personal property is exempt from the tax if the
purchaser is obligated to purchase the property for a fixed price
pursuant to a contract entered into prior to the operative date of
the ordinance. The possession of, or the exercise of any right or
power over, tangible personal property under a lease which is a
continuing purchase of the property is exempt from tax for any period
of time for which the lessee is obligated to lease the property for
an amount fixed by a lease entered into prior to the operative date
of the ordinance. For purposes of this subdivision, the storage, use,
or other consumption of, or possession of, or exercise of any right
or power over, tangible personal property shall be deemed not to be
obligated pursuant to a contract or lease for any period of time for
which any party to the contract or lease has the unconditional right
to terminate the contract or lease upon notice, whether or not the
right is exercised.
  SEC. 7.  Section 9274 of the Revenue and Taxation Code is amended
to read:
   9274.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold  , erroneous processing
action, or erroneous collection action  by the board. Bank and
third-party charges include a financial institution's or third party'
s customary charge for complying with the levy or notice to withhold
instructions and reasonable charges for overdrafts that are a direct
consequence of the erroneous levy or notice to withhold  ,
erroneous processing action, or   erroneous collection
action  . The charges are those paid by the taxpayer and not
waived for reimbursement by the financial institution or third party.
Each claimant applying for reimbursement shall file a claim with the
board that shall be in a form as may be prescribed by the board. In
order for the board to grant a claim, the board shall determine that
both of the following conditions have been satisfied:
   (1) The erroneous levy or notice to withhold was caused by board
error  , erroneous processing action, or erroneous collection
action  .
   (2) Prior to the  erroneous  levy or notice to withhold,
 erroneous processing action, or erroneous collection action,
 the taxpayer responded to all contacts by the board and
provided the board with any requested information or documentation
sufficient to establish the taxpayer's position. This provision may
be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection action.
This 90-day filing period may be extended by the board for reasonable
cause  . Within 30 days from the date the claim is received,
the board shall respond to the claim. If the board denies the claim,
the taxpayer shall be notified in writing of the reason or reasons
for the denial of the claim.
  SEC. 8.  Section 30459.4 of the Revenue and Taxation Code is
amended to read:
   30459.4.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold  , erroneous processing
action, or erroneous collection action  by the board. Bank and
third-party charges include a financial institution's or third party'
s customary charge for complying with the levy or notice to withhold
instructions and reasonable charges for overdrafts that are a direct
consequence of the erroneous levy or notice to withhold  ,
erroneous processing action, or   erroneous collection
action  . The charges are those paid by the taxpayer and not
waived for reimbursement by the financial institution or third party.
Each claimant applying for reimbursement shall file a claim with the
board that shall be in a form as may be prescribed by the board. In
order for the board to grant a claim, the board shall determine that
both of the following conditions have been satisfied:
   (1) The erroneous levy or notice to withhold  , erroneous
processing action, or erroneous collection action  was caused by
board error.
   (2) Prior to the  erroneous  levy or notice to withhold
 ,   erroneous processing action, or erroneous
collection action  , the taxpayer responded to all contacts by
the board and provided the board with any requested information or
documentation sufficient to establish the taxpayer's position. This
provision may be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection action.
This 90-day filing period may be extended by the board for reasonable
cause  . Within 30 days from the date the claim is received,
the board shall respond to the claim. If the board denies the claim,
the taxpayer shall be notified in writing of the reason or reasons
for the denial of the claim.
  SEC. 9.  Section 32474 of the Revenue and Taxation Code is amended
to read:
   32474.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold  , erroneous processing
action, or erroneous collection action  by the board. Bank and
third-party charges include a financial institution's or third party'
s customary charge for complying with the levy or notice to withhold
instructions and reasonable charges for overdrafts that are a direct
consequence of the erroneous levy or notice to withhold  ,
erroneous processing action, or   erroneous collection
action  . The charges are those paid by the taxpayer and not
waived for reimbursement by the financial institution or third party.
Each claimant applying for reimbursement shall file a claim with the
board that shall be in a form as may be prescribed by the board. In
order for the board to grant a claim, the board shall determine that
both of the following conditions have been satisfied:
                                                    (1) The erroneous
levy or notice to withhold  , erroneous processing action, or
erroneous collection action  was caused by board error.
   (2) Prior to the  erroneous  levy or notice to withhold
 ,   erroneous processing action, or erroneous
collection action  , the taxpayer responded to all contacts by
the board and provided the board with any requested information or
documentation sufficient to establish the taxpayer's position. This
provision may be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection actio
  n.   This 90-day filing period may be extended
  by the board for reasonable cause  . Within 30 days
from the date the claim is received, the board shall respond to the
claim. If the board denies the claim, the taxpayer shall be notified
in writing of the reason or reasons for the denial of the claim.
  SEC. 10.  Section 40214 of the Revenue and Taxation Code is amended
to read:
   40214.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold  , erroneous processing
action, or erroneous collection action  by the board. Bank and
third-party charges include a financial institution's or third party'
s customary charge for complying with the levy or notice to withhold
instructions and reasonable charges for overdrafts that are a direct
consequence of the erroneous levy or notice to withhold  ,
erroneous processing action, or   erroneous collection
action  . The charges are those paid by the taxpayer and not
waived for reimbursement by the financial institution or third party.
Each claimant applying for reimbursement shall file a claim with the
board that shall be in a form as may be prescribed by the board. In
order for the board to grant a claim, the board shall determine that
both of the following conditions have been satisfied:
   (1) The erroneous levy or notice to withhold  , erroneous
processing action, or erroneous collection action  was caused by
board error.
   (2) Prior to the  erroneous  levy or notice to withhold
 ,   erroneous processing action, or erroneous
collection action  , the taxpayer responded to all contacts by
the board and provided the board with any requested information or
documentation sufficient to establish the taxpayer's position. This
provision may be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection actio
  n. This 90-day filing period may be extended by the board
for reasonable cause  . Within 30 days from the date the claim
is received, the board shall respond to the claim. If the board
denies the claim, the taxpayer shall be notified in writing of the
reason or reasons for the denial of the claim.
  SEC. 11.  Section 41174 of the Revenue and Taxation Code is amended
to read:
   41174.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold  , erroneous processing
action, or erroneous collection action  by the board. Bank and
third-party charges include a financial institution's or third party'
s customary charge for complying with the levy or notice to withhold
instructions and reasonable charges for overdrafts that are a direct
consequence of the erroneous levy or notice to withhold  ,
erroneous processing action, or   erroneous collection
action  . The charges are those paid by the taxpayer and not
waived for reimbursement by the financial institution or third party.
Each claimant applying for reimbursement shall file a claim with the
board that shall be in a form as may be prescribed by the board. In
order for the board to grant a claim, the board shall determine that
both of the following conditions have been satisfied:
   (1) The erroneous levy or notice to withhold  , erroneous
processing action, or erroneous collection action  was caused by
board error.
   (2) Prior to the  erroneous  levy or notice to withhold
 ,   erroneous processing action, or erroneous
collection action  , the taxpayer responded to all contacts by
the board and provided the board with any requested information or
documentation sufficient to establish the taxpayer's position. This
provision may be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to withhold
 , erroneous processing action   , or erroneous
collection action   . This 90-day filing period may be
extended by the board for reasonable cause  . Within 30 days
from the date the claim is received, the board shall respond to the
claim. If the board denies the claim, the taxpayer shall be notified
in writing of the reason or reasons for the denial of the claim.
  SEC. 12.  Section 43525 of the Revenue and Taxation Code is amended
to read:
   43525.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold  , erroneous processing
action, or erroneous collection action  by the board. Bank and
third-party charges include a financial institution's or third party'
s customary charge for complying with the levy or notice to withhold
instructions and reasonable charges for overdrafts that are a direct
consequence of the erroneous levy or notice to withhold  ,
erroneous processing action, or   erroneous collection
action  . The charges are those paid by the taxpayer and not
waived for reimbursement by the financial institution or third party.
Each claimant applying for reimbursement shall file a claim with the
board that shall be in a form as may be prescribed by the board. In
order for the board to grant a claim, the board shall determine that
both of the following conditions have been satisfied:
   (1) The erroneous levy or notice to withhold  , erroneous
processing action, or erroneous collection action  was caused by
board error.
   (2) Prior to the  erroneous  levy or notice to withhold
 ,   erroneous processing action, or erroneous
collection action  , the taxpayer responded to all contacts by
the board and provided the board with any requested information or
documentation sufficient to establish the taxpayer's position. This
provision may be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection action
  . This 90-day filing period may be extended by the board
for reasonable cause  . Within 30 days from the date the claim
is received, the board shall respond to the claim. If the board
denies the claim, the taxpayer shall be notified in writing of the
reason or reasons for the denial of the claim.
  SEC. 13.  Section 45870 of the Revenue and Taxation Code is amended
to read:
   45870.  (a) A feepayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold  , erroneous processing
action, or erroneous collection action  by the board. Bank and
third-party charges include a financial institution's or third party'
s customary charge for complying with the levy or notice to withhold
instructions and reasonable charges for overdrafts that are a direct
consequence of the erroneous levy or notice to withhold  ,
erroneous processing action, or   erroneous collection
action  . The charges are those paid by the feepayer and not
waived for reimbursement by the financial institution or third party.
Each claimant applying for reimbursement shall file a claim with the
board that shall be in a form as may be prescribed by the board. In
order for the board to grant a claim, the board shall determine that
both of the following conditions have been satisfied:
   (1) The erroneous levy or notice to withhold  , erroneous
processing action, or erroneous collection action  was caused by
board error.
   (2) Prior to the  erroneous levy or notice to withhold
 ,   erroneous processing action, or erroneous
collection action  , the feepayer responded to all contacts by
the board and provided the board with any requested information or
documentation sufficient to establish the feepayer's position. This
provision may be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection actio
  n.   This 90-day filing period may be extended
  by the board for reasonable cause  . Within 30 days
from the date the claim is received, the board shall respond to the
claim. If the board denies the claim, the feepayer shall be notified
in writing of the reason or reasons for the denial of the claim.
  SEC. 14.  Section 46625 of the Revenue and Taxation Code is amended
to read:
   46625.  (a) A feepayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees that are incurred by the feepayer as the direct
result of an erroneous levy or notice to withhold  , erroneous
processing action, or erroneous collection action  by the board.
Bank and third-party charges include a financial institution's or
third party's customary charge for complying with either a levy or
instructions in a notice to withhold, and reasonable charges for
overdrafts that are a direct consequence of the erroneous levy or
notice to withhold  , erroneous   processing action, or
erroneous collection action  . Bank charges include only those
charges that are paid by the feepayer and not waived for
reimbursement by the financial institution or third party. Each
claimant applying for reimbursement pursuant to this section shall
file a claim with the board that shall be in the form as may be
prescribed by the board. The board shall not grant a claim unless it
determines that both of the following conditions have been satisfied:

   (1) The erroneous levy or notice to withhold  , erroneous
processing action, or erroneous collection action  resulted from
board error.
   (2) Prior to the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection action
 , the feepayer responded to all contacts by the board and
provided the board with any requested information or documentation
that was sufficient to establish the feepayer's position. The
requirement of this paragraph may be waived by the board for
reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to withhold
 that is asserted to be erroneous.   , erroneous
processing action, or erroneous collection action. This 90-day
filing   period may be extended   by the board for
reasonable cause.  The board shall respond to a claim filed
pursuant to this section within 30 days of receipt. If the board
denies a claim, the taxpayer shall be notified in writing of the
reason or reasons for denial.
  SEC. 15.  Section 50156.14 of the Revenue and Taxation Code is
amended to read:
   50156.14.  (a) A feepayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold  , erroneous processing
action, or erroneous collection action  by the board. Bank and
third-party charges include a financial institution's or third party'
s customary charge for complying with the levy or notice to withhold
instructions and reasonable charges for overdrafts that are a direct
consequence of the erroneous levy or notice to withhold  ,
erroneous processing action, or  erroneous collection action
 . The charges are those paid to the feepayer and not waived
for reimbursement by the financial institution or third party. Each
claimant applying for reimbursement shall file a claim with the board
that shall be in a form as may be prescribed by the board. In order
for the board to grant a claim, the board shall determine that both
of the following conditions have been satisfied:
   (1) The erroneous levy or notice to withhold  , erroneous
processing action, or erroneous collection action  was caused by
board error.
   (2) Prior to the  erroneous  levy or notice to withhold
 ,   erroneous processing action, or erroneous
collection action  , the feepayer responded to all contacts by
the board and provided the board with any requested information or
documentation sufficient to establish the feepayer's position. This
provision may be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection actio
  n. This 90-day filing period may be extended by the board
for reasonable cause  . Within 30 days from the date the claim
is received, the board shall respond to the claim. If the board
denies the claim, the feepayer shall be notified in writing of the
reason or reasons for the denial of the claim.
  SEC. 16.  Section 55335 of the Revenue and Taxation Code is amended
to read:
   55335.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold , erroneous processing
action, or erroneous collection action  by the board. Bank and
third-party charges include a financial institution's or third party'
s customary charge for complying with the levy or notice to withhold
instructions and reasonable charges for overdrafts that are a direct
consequence of the erroneous levy or notice to withhold  ,
erroneous processing action, or   erroneous collection
action  . The charges are those paid by the taxpayer and not
waived for reimbursement by the financial institution or third party.
Each claimant applying for reimbursement shall file a claim with the
board that shall be in a form as may be prescribed by the board. In
order for the board to grant a claim, the board shall determine that
both of the following conditions have been satisfied:
   (1) The erroneous levy or notice to withhold  , erroneous
processing action, or erroneous collection action  was caused by
board error.
   (2) Prior to the  erroneous  levy or notice to withhold
 ,   erroneous processing action, or erroneous
collection action  , the taxpayer responded to all contacts by
the board and provided the board with any requested information or
documentation sufficient to establish the taxpayer's position. This
provision may be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection action.
This 90-day filing period may be extended by the board for reasonable
cause  . Within 30 days from the date the claim is received,
the board shall respond to the claim. If the board denies the claim,
the taxpayer shall be notified in writing of the reason or reasons
for the denial of the claim.
  SEC. 17.  Section 60633.1 of the Revenue and Taxation Code is
amended to read:
   60633.1.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold  , erroneous processing
action, or erroneous collection action  by the board. Bank and
third-party charges include a financial institution's or third party'
s customary charge for complying with the levy or notice to withhold
instructions and reasonable charges for overdrafts that are a direct
consequence of the erroneous levy or notice to withhold  ,
erroneous proce   ssing action, or   erroneous
collection action  . The charges are those paid by the taxpayer
and not waived for reimbursement by the financial institution or
third party. Each claimant applying for reimbursement shall file a
claim with the board that shall be in a form as may be prescribed by
the board. In order for the board to grant a claim, the board shall
determine that both of the following conditions have been satisfied:
   (1) The erroneous levy or notice to withhold  , erroneous
processing action, or erroneous collection action  was caused by
board error.
   (2) Prior to the  erroneous  levy or notice to withhold
 ,   erroneous processing action, or erroneous
collection action  , the taxpayer responded to all contacts by
the board and provided the board with any requested information or
documentation sufficient to establish the taxpayer's position. This
provision may be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection action
  . This 90-day filing period may be extended by the board
for reasonable cause  . Within 30 days from the date the claim
is received, the board shall respond to the claim. If the board
denies the claim, the taxpayer shall be notified in writing of the
reason or reasons for the denial of the claim.