# Today's Law As Amended

**Section 6591.5 of the Revenue and Taxation Code is amended to read:**

### SECTION 1.

(a)(1)For interest required to be paid to the state upon underpayments of tax to the state, “ modified adjusted rate per annum” means the adjusted annual rate established pursuant to subdivision (c), plus three percentage points.

(2)For interest required to be paid by the state upon overpayments of tax, “modified adjusted rate per annum” means the adjusted annual rate established pursuant to subdivision (d).

(b)“Modified adjusted rate per month, or fraction thereof” means the modified adjusted rate per annum divided by 12.

(c)The

###### 6591.5.

*(a)*

*“Modified adjusted rate per annum” means the rate*determined in accordance with the provisions of Section

*6621(a)(2)*of the Internal Revenue

*Code,*which

*establishes*the underpayment

*rate under that code, plus three percentage points, except its reference to*Section 6621(b) of the Internal Revenue

*Code, and the determination therein,*shall be modified to be determined semiannually as follows:

(1) The rate for January shall apply for the following July 1 to December 31, inclusive.

(2) The rate for July shall apply for the following January 1 to June 30, inclusive.

*(b)*

*“Modified*

*adjusted rate per month, or fraction thereof” means the modified adjusted rate per annum divided by 12.*

*(c)*For purposes of this part, and any other provision of law referencing this method of computation, in computing the amount of any interest required to be paid by the state or by the taxpayer, or any other amount determined by reference to that amount of interest, that interest and that amount shall be computed as simple interest, not compound interest.