Bill Text: CA SB137 | 2009-2010 | Regular Session | Amended

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Bill Title: Income tax: overpayments: interest.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB137 Detail]

Download: California-2009-SB137-Amended.html

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BILL NUMBER: SB 137	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 27, 2009
	AMENDED IN SENATE  MARCH 31, 2009

INTRODUCED BY   Senator Maldonado

                        FEBRUARY 10, 2009

   An act to  amend Section 19341 of   add
Section 19341.5 to  the Revenue and Taxation Code, relating to
taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 137, as amended, Maldonado. Income tax: overpayments: interest.

   Existing income and corporation tax laws require the payment of
interest on overpayments of tax, except that no interest is required
if the overpayments are refunded or credited within specified 90-day
time periods.
   This bill would provide that, in the case of any individual
 or fiduciary  taxable under the Personal Income Tax
Law  for taxable years beginning on or after January 1,
2008, no interest shall be allowed on any overpayments that are
refunded or credited within 60 days after the return is filed
  , in the circumstance in which the Controller makes a
specified determination, interest shall be allowed and paid on refund
warrants that are delayed, as provided  .
   This bill would make a legislative finding and declaration
regarding the public purpose served by the bill.
   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 19341.5 is added to the 
 Revenue and Taxation Code   , to read:  
   19341.5.  (a) Notwithstanding Section 19341, for individuals
subject to tax under Part 10 (commencing with Section 17001), if the
Controller has determined that a cash management emergency exists and
postpones the issuance of refund warrants as a result of that
determination, then interest shall be allowed and paid on refund
warrants that are delayed by the action of the Controller in
accordance with subdivisions (b) and (c).
   (b) Notwithstanding Sections 19002, 19351, and 19363, interest
shall be allowed and paid on the overpayment at the adjusted annual
rate established pursuant to Section 19521 for the period otherwise
prohibited under Section 19341, beginning 15 days after the date a
return is filed, or 15 days after the date the issuance of refund
warrants is postponed, whichever is later, and ending on a date not
more than 30 days preceding the date the refund warrant is issued as
determined by the Franchise Tax Board.
   (c) This section shall be applicable to all refund warrants
postponed under subdivision (a) after February 1, 2009. 

  SECTION 1.    Section 19341 of the Revenue and
Taxation Code is amended to read:
   19341.  (a) Except as provided in subdivisions (b), (c), and (d),
if any overpayment of tax is refunded or credited within 90 days
after the return is filed, or within 90 days after the last day
prescribed for filing the return of tax (determined without regard to
any extension of time for filing the return), whichever is later, no
interest shall be allowed under Section 19340 on the overpayment.
   For the purposes of this section, "overpayment of tax" includes a
refund in excess of tax liability as prescribed in subdivision (j) of
Section 17053.5.
   (b) In the case of returns which set forth no determination or
amount of tax liability, or credits other than that allowed under
Section 17053.5, and which are filed solely for the purpose of
claiming the renter credit, no interest shall be allowed on refunds
made within 90 days from the date on which the return is filed, or
within 90 days after the last day prescribed for filing the return,
whichever is later. This subdivision applies only when communication
with the claimant or other verification is necessary to determine
entitlement to the claimed credit.
   (c) Except as provided in subdivisions (b) and (d), in the case of
an individual or fiduciary taxable under Part 10 (commencing with
Section 17001), for the 2008 taxable year and each taxable year
thereafter, no interest shall be allowed under Section 19340 on any
overpayment of tax that is refunded or credited within 60 days after
the return is filed.
   (d) In the case of a return of tax which is filed after the last
date prescribed for filing the return (determined with regard to
extensions), no interest shall be allowed or paid for any day before
the date on which the return is filed. 
  SEC. 2.  The Legislature finds and declares that the interest
allowed to taxpayers by this act with respect to  the 2008
taxable year   refunds postponed after February 1, 2009,
 serves a public purpose and does not constitute a gift of
public funds within the meaning of Section 6 of Article XVI of the
California Constitution.