Bill Text

Bill Information

PDF |Add To My Favorites |Track Bill | print page

AB-747 Property taxation: collections: electronic payment process. (2017-2018)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
Date Published: 05/16/2017 04:00 AM
AB747:v97#DOCUMENT

Amended  IN  Assembly  May 15, 2017
Amended  IN  Assembly  April 24, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 747


Introduced by Assembly Member Gloria

February 15, 2017


An act to amend Sections 2503.1, 2503.2, and 2512 of, and to add and repeal Section 2503.3 of, of the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


AB 747, as amended, Gloria. Property taxation: collections: electronic payment process.
Existing property tax law prescribes the mediums of payment for property taxes. Existing property tax law authorizes the tax collector for any city, county, or city and county, in his or her discretion, to require any taxpayer, who makes an aggregate payment of $50,000 or more on the 2 most recent regular installments on the secured roll or on the one installment of the most recent unsecured tax roll, to make subsequent payments by electronic funds transfer.
This bill would additionally authorize the tax collector to require a taxpayer who makes an aggregate payment of $50,000 or more, as specified above, to make payments through an electronic payment process. The bill would define “electronic payment process” for these purposes as any transfer of funds, including a transfer made by credit card, which is initiated through an online, Internet Web-based, or other electronic system. The bill would also make conforming changes.

This bill would authorize the tax collector for the County of San Diego to require a taxpayer who makes an aggregate payment of $5,000 or more to make payments through an electronic funds transfer or an electronic payment process. The bill would authorize the tax collector for the County of San Diego to provide exceptions from a mandatory electronic funds transfer or electronic payment process for taxpayers who have shown an inability to pay electronically. The bill, if the tax collector for the County of San Diego implements a mandatory electronic funds transfer or electronic payment process pursuant to these provisions, would require that he or she submit a report by January 1, 2023, to the Assembly Committee on Revenue and Taxation and the Senate Committee on Governance and Finance on the implementation of that electronic funds transfer or electronic payment process. The bill would repeal this specific authorization for the County of San Diego on January 1, 2023.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of San Diego.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 2503.1 of the Revenue and Taxation Code is amended to read:

2503.1.
 As used in this division, the following definitions shall apply:
(a) “Electronic funds transfer” means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a financial institution to credit or debit an account.
(b) “Electronic payment process” means any transfer of funds, including, but not limited to, a transfer made by credit card, which is initiated through an online, Internet Web-based, or other electronic system.

SEC. 2.

 Section 2503.2 of the Revenue and Taxation Code is amended to read:

2503.2.
 (a) The tax collector for any city, county, or city and county may, in his or her discretion, accept electronic funds transfers in payment for a purchase at a tax sale, of any tax, assessment, or on a redemption.
(b) Except as provided in Section 2503.3, the The tax collector for any city, county, or city and county may, in his or her discretion, require any taxpayer, or any paying agent of a taxpayer or taxpayers, who makes an aggregate payment of fifty thousand dollars ($50,000) or more on the two most recent regular installments on the secured roll or on the one installment of the most recent unsecured tax roll, to make subsequent payments by either an electronic funds transfer or an electronic payment process.
(c) Any taxpayer or paying agent making payment by electronic funds transfer or other electronic payment process shall provide any supporting documentation and electronic information as requested by the tax collector. An electronic funds transfer or other electronic payment process made pursuant to this section shall be made to the bank account designated by the tax collector.
(d) Any costs incurred by the tax collector as a result of the acceptance of electronic funds transfers or other electronic payment processes pursuant to this section shall be considered administrative costs of tax collection, except that if for any reason the electronic funds transfer or other electronic payment process is not completed, those costs shall be recovered as provided in subdivision (g).
(e) The acceptance of an electronic funds transfer or other electronic payment process shall constitute payment of a tax, assessment, or redemption as of the date of acceptance when, but not before, the transfer has been completed. An electronic funds transfer or other electronic payment process is completed by acceptance by the bank designated by the tax collector of the payment specified by the originator’s payment order.
(f) If an electronic funds transfer or other electronic payment process is not accepted for any reason, any record of payment entered on any official record indicating the acceptance of that transfer shall be canceled, and the tax or assessment shall be a lien as if no payment has been attempted. When a cancellation of a record of payment or other electronic payment process is made, the canceling officer shall record the cancellation on the record that contained the notation of payment, and immediately shall cause a written notice of cancellation to be sent to the person attempting the electronic funds transfer or other electronic payment process.
(g) Upon notice of nonacceptance of an electronic funds transfer or other electronic payment process, the tax collector may charge the person who attempted the electronic funds transfer or other electronic payment process a fee not to exceed the costs of processing the transfer, providing notice of nonacceptance to that person, and making required cancellations on the tax roll. The amount of any fee charged pursuant to this subdivision shall be set by the governing body of the relevant city, county, or city and county, and may be added to the tax bill and collected in the same manner as costs recovered pursuant to Section 2621.

SEC. 3.Section 2503.3 is added to the Revenue and Taxation Code, to read:
2503.3.

(a)(1)Notwithstanding subdivision (b) of Section 2503.2, the tax collector for the County of San Diego may, in his or her discretion and in accordance with the applicable requirements of Section 2503.2 other than subdivision (b) of that section, require any taxpayer, or any paying agent of a taxpayer or taxpayers, who makes an aggregate payment of five thousand dollars ($5,000) or more on the two most recent regular installments on the secured roll or on the one installment of the most recent unsecured tax roll, to make payments by either an electronic funds transfer or an electronic payment process.

(2)The tax collector for the County of San Diego may, in his or her discretion, provide exceptions from a mandatory electronic funds transfer or electronic payment process implemented pursuant to this section for taxpayers who have shown an inability to pay electronically.

(b)(1)If the tax collector for the County of San Diego implements a mandatory electronic funds transfer or electronic payment process pursuant to this section, he or she shall submit a report by January 1, 2023, to the Assembly Committee on Revenue and Taxation and the Senate Committee on Governance and Finance on the implementation of the mandatory electronic funds transfer or an electronic payment process.

(2)The report required to be submitted by this subdivision shall be submitted in compliance with Section 9795 of the Government Code.

(c)This section shall be repealed on January 1, 2023.

SEC. 4.SEC. 3.

 Section 2512 of the Revenue and Taxation Code is amended to read:

2512.
 (a) If a remittance to cover a payment required by law to be made to a taxing agency prior to a specified date and hour is (1) deposited in the United States mail in a sealed envelope, properly addressed with the required postage prepaid, or (2) deposited for shipment with an independent delivery service that is an Internal Revenue Service designated delivery service or has been approved by the tax collector, in a sealed envelope or package, properly addressed with the required fee prepaid, delivery of which shall not be later than 5 p.m. on the next business day after the effective delinquent date, the remittance shall be deemed received on the date shown by the post office cancellation mark stamped upon the envelope containing the remittance, or the independent delivery service shipment date shown on the packing slip or air bill attached to the outside of the envelope or package containing the remittance, or on the date it was mailed if proof satisfactory to the tax collector establishes that the mailing occurred on an earlier date. The taxing agency is not required to accept a payment actually received in the mail if it is received more than 30 days after the date and time set by law for the payment.
(b) If a remittance to cover a payment, required by law to be made to a taxing agency prior to a specified date and hour, is made by an electronic payment option, such as wire transfer, telephoned credit card, or electronic Internet means, the remittance shall be deemed received on the date the transaction was completed by the taxpayer, if the remittance was made on the taxing agency’s authorized Internet Web site or via the taxing agency’s authorized telephone number. Proof of completion of the transaction in the form of a confirmation number or other convincing evidence shall be presented by the taxpayer to the satisfaction of the tax collector. This subdivision does not apply to payments by electronic funds transfer or other electronic payment process as provided in Sections 2503.1, 2503.2, and 2503.3. 2503.1 and 2503.2.
(c) This section does not, for purposes of applying subdivision (a) of Section 3707, apply to a remittance sent by mail, by independent delivery service, or by electronic payment option for the redemption of tax-defaulted property.

SEC. 5.

The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique characteristics of the County of San Diego that make it an ideal area to determine the effectiveness of implementing an electronic payment process for property tax payments.