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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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  MARCH 31, 2009

INTRODUCED BY   Senator Maldonado

                        FEBRUARY 10, 2009

   An act to amend Section  17048   19341 
of the Revenue and Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 137, as amended, Maldonado.  Income taxes: tax tables.
  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.  
   This bill would make a legislative finding and declaration
regarding the public purpose served by the bill.  
   The Personal Income Tax Law imposes specified taxes based upon
gross income, and, among other things, provides for the computation
of taxes in accordance with tax tables prescribed by the Franchise
Tax Board.  
   This bill would make technical, nonsubstantive changes to those
provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   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)  In   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  1982
  2008  taxable year and each taxable year
thereafter,  the 90-day time periods specified in subdivision
(a) shall be 45 days   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 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.  
  SECTION 1.    Section 17048 of the Revenue and
Taxation Code is amended to read:
   17048.  (a) In lieu of the tax imposed under Section 17041,
individuals with taxable income of such amounts as prescribed by the
Franchise Tax Board, shall compute their taxes under tax tables
prescribed by the Franchise Tax Board. The tax tables shall reflect
the tax imposed under Section 17041 in income progressions of not
less than one hundred dollars ($100) taking into account the marital
or other status of the individual. For purposes of this part, the tax
imposed by this section shall be treated as tax imposed by Section
17041.
   (b) Subdivision (a) shall not apply to any of the following:
   (1) An individual to whom subdivision (b) of Section 17504
(relating to the tax on lump-sum distributions) applies for the
taxable year.
   (2) An individual making a return under Section 443(a)(1) of the
Internal Revenue Code for a period of less than 12 months on account
of a change in annual accounting period.
   (3) An estate or trust.