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SB-703 Transactions and use taxes: County of Alameda.(2017-2018)

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Date Published: 05/03/2017 09:00 PM
SB703:v98#DOCUMENT

Amended  IN  Senate  May 03, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 703


Introduced by Senator Skinner

February 17, 2017


An act to amend Sections 2503.1, 2503.2, and 2512 of the heading of Chapter 3.7 (commencing with Section 7291) of, and to add and repeal Chapter 3.73 (commencing with Section 7292.2) of Part 1.7 of Division 2 of the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


SB 703, as amended, Skinner. Property taxation: collection: electronic payment process. Transactions and use taxes: County of Alameda.
Existing law authorizes cities and counties, subject to certain limitations and approval requirements, to levy a transactions and use tax for general or specific purposes, in accordance with the procedures and requirements set forth in the Transactions and Use Tax Law, including a requirement that the combined rate of all taxes that may be imposed in accordance with that law in the county not exceed 2%.
This bill would authorize the County of Alameda to impose a transactions and use tax for general or specific purposes at a rate of no more than 0.5% that, in combination with other transactions and use taxes, would exceed the above-described combined rate limit of 2%, if the county adopts an ordinance proposing the tax and the ordinance proposing the tax is approved by the voters, subject to applicable voter approval requirements, as specified. The bill would repeal this authorization on December 31, 2022, if an ordinance proposing the tax has not been approved by that date in the county. The bill would also make a technical conforming correction.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Alameda.

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 eliminate the $50,000 or more amount requirement described above, thereby authorizing the tax collector to require any taxpayer to make payments through an electronic payment process. The bill would define “electronic payment process” as any transfer of funds which is initiated through an online, Internet Web-based, or other electronic system. The bill would also make conforming changes.

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

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


SECTION 1.

 The heading of Chapter 3.7 (commencing with Section 7291) of Part 1.7 of Division 2 of the Revenue and Taxation Code is amended to read:
CHAPTER  3.7. Local Government Finance in the County of Alameda Contra Costa Transportation Authority Transactions and Use Tax

SEC. 2.

 Chapter 3.73 (commencing with Section 7292.2) is added to Part 1.7 of Division 2 of the Revenue and Taxation Code, to read:
CHAPTER  3.73. Local Government Finance in the County of Alameda

7292.2.
 Notwithstanding any other law, the County of Alameda may impose a transactions and use tax for general or specific purposes to support countywide programs at a rate of no more than 0.5 percent that would, in combination with all taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), exceed the limit established in Section 7251.1, if all of the following requirements are met:
(a) The county adopts an ordinance proposing the transactions and use tax by an applicable voting approval requirement.
(b) The ordinance proposing the transactions and use tax is submitted to the electorate and is approved by the voters voting on the ordinance pursuant to Article XIII C of the California Constitution.
(c) The transactions and use tax conforms to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), other than Section 7251.1.

7292.3.
 If, as of December 31, 2022, an ordinance proposing a transactions and use tax has not been approved in the County of Alameda as required by subdivision (b) of Section 7292.2, this chapter shall be repealed as of that same date.

SEC. 3.

 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 fiscal pressures being experienced in the County of Alameda in providing essential programs.
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 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)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, to make payments through 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 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 process 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 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 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.