Bill Text: CA AB2375 | 2009-2010 | Regular Session | Amended

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Bill Title: Sales and use taxes: State Board of Equalization:

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2010-07-01 - From committee without further action pursuant to Joint Rule 62(a). [AB2375 Detail]

Download: California-2009-AB2375-Amended.html

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BILL NUMBER: AB 2375	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 29, 2010
	AMENDED IN ASSEMBLY  APRIL 21, 2010

INTRODUCED BY   Assembly Member Knight

                        FEBRUARY 19, 2010

   An act to add Section 6593.7 to the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2375, as amended, Knight. Sales and use taxes: State Board of
Equalization: administration: interest.
   The Sales and Use Tax Law requires the payment of interest at a
specified rate on a failure to timely pay taxes, specified
prepayments, and amounts collected as tax under that law, 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 members of the board, meeting as a
public body, to relieve all or any part of the interest imposed, not
to exceed a specified amount in a 12-month period, if the board
finds, in its discretion, that a person's failure to make a timely
payment was due to extraordinary circumstances, as defined, and that
it is inequitable to compute interest in accordance with existing
law, and if the person, among other things, pays the amount due on
which the interest is imposed and files with the board a statement
under penalty of perjury setting forth specified information. By
requiring persons to make these statements under penalty of perjury,
this bill would expand the circumstances under which a person may be
convicted of the crime of perjury and thereby impose a state-mandated
local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 6593.7 is added to the Revenue and Taxation
Code, to read:
   6593.7.  (a) If the board finds in its discretion that a person's
failure to make a timely payment was due to extraordinary
circumstances and that it is inequitable to compute interest in
accordance with this part, the board may relieve all or any part of
the interest imposed on that payment, not to exceed the amount
specified in subdivision (b), if all of the following occur:
   (1) The person was granted relief from all penalties that applied
to that payment.
   (2) The person has paid the payment on which the interest was
imposed, or in the case of interest attributable to an unpaid
liability for which the person has filed a petition for
redetermination, the person pays the amount of the payment due on
which the interest was imposed within 30 days after service upon the
person of the final order or decision of the board on that petition
for redetermination.
   (3) The person files a request for an oral hearing before the
board.
   (4) The person files with the board a statement under penalty of
perjury setting forth the facts upon which he or she bases his or her
claim for relief and any other information which the board may
require.
   (b)  (1)    The aggregate relief granted to all
persons pursuant to subdivision (a) shall not exceed fifty thousand
dollars ($50,000) in any 12-month period. The board shall not exceed
this fifty thousand dollar ($50,000) limitation without further
statutory authorization. 
   (2) The limitation specified in paragraph (1) shall not apply to
the relief provided by the board pursuant to Section 6593. 
   (c) For purposes of this section:
   (1) "Board" means the members of the State Board of Equalization
meeting as a public body.
   (2) "Extraordinary circumstances" means any of the following:
   (A) The occurrence of a death or serious illness of the person or
the person's next of kin that caused the person's failure to make a
timely payment.
   (B) The occurrence of an emergency, as defined in Section 8558 of
the Government Code, that caused the person's failure to make a
timely remittance.
   (C) Criminal misconduct by a person, other than the person that
failed to make a timely payment, that caused the person's failure to
make a timely payment.
   (3) Payment includes any of the following:
   (A) A payment of tax.
   (B) A prepayment of tax on which interest is imposed under this
part.
   (C) A payment of an amount of tax required to be collected and
paid to the state.
   (d) Any relief granted under this section may be rescinded, and
all interest liabilities may be reestablished, without regard to any
statute of limitations that otherwise may be applicable, if the
person fails to comply with paragraph (2) of subdivision (a).
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.