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SB-1420 State Board of Equalization: sales and use taxes: administration: interest.(2011-2012)



Current Version: 05/09/12 - Amended Senate

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SB1420:v97#DOCUMENT

Amended  IN  Senate  May 09, 2012
Amended  IN  Senate  May 01, 2012

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Senate Bill
No. 1420

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   Local Program: YESNO  

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.