Bill Text: CA SB1420 | 2011-2012 | Regular Session | Amended
Bill Title: State Board of Equalization: sales and use taxes:
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-05-24 - Held in committee and under submission. [SB1420 Detail]
Download: California-2011-SB1420-Amended.html
BILL NUMBER: SB 1420 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 9, 2012
AMENDED IN SENATE MAY 1, 2012
INTRODUCED BY Senator Correa
FEBRUARY 24, 2012
An act to add Section 6593.7 to the Revenue and Taxation Code,
relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1420, as amended, Correa. State Board of Equalization: sales
and use taxes: 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 declaration
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
This bill would impose a civil penalty upon a person
who knowingly provides false information in that declaration .
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 no .
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 a written declaration 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 twenty-five thousand dollars
($25,000) in any 12-month period.
(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) (1) 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).
(2) A person who knowingly provides false information in the
written declaration submitted pursuant to paragraph (4) of
subdivision (a) shall be subject to a civil penalty of not less than
one thousand dollars ($1,000) and not more than twenty-five thousand
dollars ($25,000), in addition to any other civil remedies available
to the board. An action to impose a civil penalty pursuant to this
subdivision may be brought by any public prosecutor in the name of
the people of the state.
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.
