Bill Text: CA SB442 | 2013-2014 | Regular Session | Chaptered

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Bill Title: State Board of Equalization: erroneous charges.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2013-09-06 - Chaptered by Secretary of State. Chapter 253, Statutes of 2013. [SB442 Detail]

Download: California-2013-SB442-Chaptered.html

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BILL NUMBER: SB 442	CHAPTERED
	BILL TEXT

	CHAPTER  253
	FILED WITH SECRETARY OF STATE  SEPTEMBER 9, 2013
	APPROVED BY GOVERNOR  SEPTEMBER 6, 2013
	PASSED THE SENATE  AUGUST 22, 2013
	PASSED THE ASSEMBLY  AUGUST 8, 2013
	AMENDED IN ASSEMBLY  JUNE 15, 2013
	AMENDED IN SENATE  APRIL 16, 2013

INTRODUCED BY   Senator Wyland

                        FEBRUARY 21, 2013

   An act to amend Sections 7096, 9274, 30459.4, 32474, 40214, 41174,
43525, 45870, 46625, 50156.14, 55335, and 60633.1 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 442, Wyland. State Board of Equalization: erroneous charges.
   Existing law requires the State Board of Equalization to
administer the Sales and Use Tax Law, Use Fuel Tax Law, Cigarette and
Tobacco Products Tax Law, Alcoholic Beverage Tax Law, Energy
Resources Surcharge Law, Emergency Telephone Users Surcharge Act,
Hazardous Substances Tax Law, Integrated Waste Management Fee Law,
Oil Spill Response, Prevention, and Administration Fees Law,
Underground Storage Tank Maintenance Fee Law, Fee Collection
Procedures Law, and Diesel Fuel Tax Law, and authorizes the board to
undertake collection action on delinquent accounts, including issuing
a levy or notice to withhold. Under existing sales and use tax laws,
a taxpayer and a feepayer may file a claim with the board for
reimbursement of bank charges or any other reasonable 3rd-party check
charge fees incurred by the taxpayer or the feepayer as a direct
result of an erroneous levy or notice to withhold by the board or
erroneous processing or collection action within 90 days of the date
of the board action. Under the other laws, a taxpayer and a feepayer
may only file a claim for those charges or fees incurred as a direct
result of an erroneous levy or notice to withhold.
   This bill would extend to those other laws the authorization for a
taxpayer and a feepayer to also file a reimbursement claim with the
board for bank charges and other reasonable 3rd-party check charge
fees incurred as a direct result of an erroneous processing action or
erroneous collection action by the board within 90 days of the board
action.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 7096 of the Revenue and Taxation Code is
amended to read:
   7096.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold, erroneous processing action,
or erroneous collection action by the board. Bank and third-party
charges include a financial institution's or third party's customary
charge for complying with the levy or notice to withhold instructions
and reasonable charges for overdrafts that are a direct consequence
of the erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action. The charges are those paid by
the taxpayer and not waived or reimbursed by the financial
institution or third party. Each claimant applying for reimbursement
shall file a claim with the board that shall be in the form as may be
prescribed by the board. In order for the board to grant a claim,
the board shall determine that both of the following conditions have
been satisfied:
   (1) The erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action was caused by board error.
   (2) Prior to the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action, the taxpayer
responded to all contacts by the board and provided the board with
any requested information or documentation sufficient to establish
the taxpayer's position. This provision may be waived by the board
for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date the bank and third-party charges were incurred by the
taxpayer. Within 30 days from the date the claim is received, the
board shall respond to the claim. If the board denies the claim, the
taxpayer shall be notified in writing of the reason or reasons for
the denial of the claim.
  SEC. 2.  Section 9274 of the Revenue and Taxation Code is amended
to read:
   9274.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold, erroneous processing action,
or erroneous collection action by the board. Bank and third-party
charges include a financial institution's or third party's customary
charge for complying with the levy or notice to withhold instructions
and reasonable charges for overdrafts that are a direct consequence
of the erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action. The charges are those paid by
the taxpayer and not waived or reimbursed by the financial
institution or third party. Each claimant applying for reimbursement
shall file a claim with the board that shall be in a form as may be
prescribed by the board. In order for the board to grant a claim, the
board shall determine that both of the following conditions have
been satisfied:
   (1) The erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action was caused by board error.
   (2) Prior to the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action, the taxpayer
responded to all contacts by the board and provided the board with
any requested information or documentation sufficient to establish
the taxpayer's position. This provision may be waived by the board
for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date the bank and third-party charges were incurred by the
taxpayer. Within 30 days from the date the claim is received, the
board shall respond to the claim. If the board denies the claim, the
taxpayer shall be notified in writing of the reason or reasons for
the denial of the claim.
  SEC. 3.  Section 30459.4 of the Revenue and Taxation Code is
amended to read:
   30459.4.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold, erroneous processing action,
or erroneous collection action by the board. Bank and third-party
charges include a financial institution's or third party's customary
charge for complying with the levy or notice to withhold instructions
and reasonable charges for overdrafts that are a direct consequence
of the erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action. The charges are those paid by
the taxpayer and not waived or reimbursed by the financial
institution or third party. Each claimant applying for reimbursement
shall file a claim with the board that shall be in a form as may be
prescribed by the board. In order for the board to grant a claim, the
board shall determine that both of the following conditions have
been satisfied:
   (1) The erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action was caused by board error.
   (2) Prior to the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action, the taxpayer
responded to all contacts by the board and provided the board with
any requested information or documentation sufficient to establish
the taxpayer's position. This provision may be waived by the board
for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date the bank and third-party charges were incurred by the
taxpayer. Within 30 days from the date the claim is received, the
board shall respond to the claim. If the board denies the claim, the
taxpayer shall be notified in writing of the reason or reasons for
the denial of the claim.
  SEC. 4.  Section 32474 of the Revenue and Taxation Code is amended
to read:
   32474.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold, erroneous processing action,
or erroneous collection action by the board. Bank and third-party
charges include a financial institution's or third party's customary
charge for complying with the levy or notice to withhold instructions
and reasonable charges for overdrafts that are a direct consequence
of the erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action. The charges are those paid by
the taxpayer and not waived or reimbursed by the financial
institution or third party. Each claimant applying for reimbursement
shall file a claim with the board that shall be in a form as may be
prescribed by the board. In order for the board to grant a claim, the
board shall determine that both of the following conditions have
been satisfied:
   (1) The erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action was caused by board error.
   (2) Prior to the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action, the taxpayer
responded to all contacts by the board and provided the board with
any requested information or documentation sufficient to establish
the taxpayer's position. This provision may be waived by the board
for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date the bank and third-party charges were incurred by the
taxpayer. Within 30 days from the date the claim is received, the
board shall respond to the claim. If the board denies the claim, the
taxpayer shall be notified in writing of the reason or reasons for
the denial of the claim.
  SEC. 5.  Section 40214 of the Revenue and Taxation Code is amended
to read:
   40214.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold, erroneous processing action,
or erroneous collection action by the board. Bank and third-party
charges include a financial institution's or third party's customary
charge for complying with the levy or notice to withhold instructions
and reasonable charges for overdrafts that are a direct consequence
of the erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action. The charges are those paid by
the taxpayer and not waived or reimbursed by the financial
institution or third party. Each claimant applying for reimbursement
shall file a claim with the board that shall be in a form as may be
prescribed by the board. In order for the board to grant a claim, the
board shall determine that both of the following conditions have
been satisfied:
   (1) The erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action was caused by board error.
   (2) Prior to the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action, the taxpayer
responded to all contacts by the board and provided the board with
any requested information or documentation sufficient to establish
the taxpayer's position. This provision may be waived by the board
for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date the bank and third-party charges were incurred by the
taxpayer. Within 30 days from the date the claim is received, the
board shall respond to the claim. If the board denies the claim, the
taxpayer shall be notified in writing of the reason or reasons for
the denial of the claim.
  SEC. 6.  Section 41174 of the Revenue and Taxation Code is amended
to read:
   41174.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold, erroneous processing action,
or erroneous collection action by the board. Bank and third-party
charges include a financial institution's or third party's customary
charge for complying with the levy or notice to withhold instructions
and reasonable charges for overdrafts that are a direct consequence
of the erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action. The charges are those paid by
the taxpayer and not waived or reimbursed by the financial
institution or third party. Each claimant applying for reimbursement
shall file a claim with the board that shall be in a form as may be
prescribed by the board. In order for the board to grant a claim, the
board shall determine that both of the following conditions have
been satisfied:
   (1) The erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action was caused by board error.
   (2) Prior to the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action, the taxpayer
responded to all contacts by the board and provided the board with
any requested information or documentation sufficient to establish
the taxpayer's position. This provision may be waived by the board
for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date the bank and third-party charges were incurred by the
taxpayer. Within 30 days from the date the claim is received, the
board shall respond to the claim. If the board denies the claim, the
taxpayer shall be notified in writing of the reason or reasons for
the denial of the claim.
  SEC. 7.  Section 43525 of the Revenue and Taxation Code is amended
to read:
   43525.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold, erroneous processing action,
or erroneous collection action by the board. Bank and third-party
charges include a financial institution's or third party's customary
charge for complying with the levy or notice to withhold instructions
and reasonable charges for overdrafts that are a direct consequence
of the erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action. The charges are those paid by
the taxpayer and not waived or reimbursed by the financial
institution or third party. Each claimant applying for reimbursement
shall file a claim with the board that shall be in a form as may be
prescribed by the board. In order for the board to grant a claim, the
board shall determine that both of the following conditions have
been satisfied:
   (1) The erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action was caused by board error.
   (2) Prior to the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action, the taxpayer
responded to all contacts by the board and provided the board with
any requested information or documentation sufficient to establish
the taxpayer's position. This provision may be waived by the board
for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date the bank and third-party charges were incurred by the
taxpayer. Within 30 days from the date the claim is received, the
board shall respond to the claim. If the board denies the claim, the
taxpayer shall be notified in writing of the reason or reasons for
the denial of the claim.
  SEC. 8.  Section 45870 of the Revenue and Taxation Code is amended
to read:
   45870.  (a) A feepayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the feepayer as the direct result of an
erroneous levy or notice to withhold, erroneous processing action,
or erroneous collection action by the board. Bank and third-party
charges include a financial institution's or third party's customary
charge for complying with the levy or notice to withhold instructions
and reasonable charges for overdrafts that are a direct consequence
of the erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action. The charges are those paid by
the feepayer and not waived or reimbursed by the financial
institution or third party. Each claimant applying for reimbursement
shall file a claim with the board that shall be in a form as may be
prescribed by the board. In order for the board to grant a claim, the
board shall determine that both of the following conditions have
been satisfied:
   (1) The erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action was caused by board error.
   (2) Prior to the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action, the feepayer
responded to all contacts by the board and provided the board with
any requested information or documentation sufficient to establish
the feepayer's position. This provision may be waived by the board
for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date the bank and third-party charges were incurred by the
feepayer. Within 30 days from the date the claim is received, the
board shall respond to the claim. If the board denies the claim, the
feepayer shall be notified in writing of the reason or reasons for
the denial of the claim.
  SEC. 9.  Section 46625 of the Revenue and Taxation Code is amended
to read:
   46625.  (a) A feepayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees that are incurred by the feepayer as the direct
result of an erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action by the board. Bank
and third-party charges include a financial institution's or third
party's customary charge for complying with either a levy or
instructions in a notice to withhold, and reasonable charges for
overdrafts that are a direct consequence of the erroneous levy or
notice to withhold, erroneous processing action, or erroneous
collection action. Bank charges include only those charges that are
paid by the feepayer and not waived or reimbursed by the financial
institution or third party. Each claimant applying for reimbursement
pursuant to this section shall file a claim with the board that shall
be in the form as may be prescribed by the board. The board shall
not grant a claim unless it determines that both of the following
conditions have been satisfied:
   (1) The erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action was caused by board error.
   (2) Prior to the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action, the feepayer
responded to all contacts by the board and provided the board with
any requested information or documentation sufficient to establish
the feepayer's position. This provision may be waived by the board
for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date the bank and third-party charges were incurred by the
feepayer. The board shall respond to a claim filed pursuant to this
section within 30 days of receipt. If the board denies a claim, the
feepayer shall be notified in writing of the reason or reasons for
denial.
  SEC. 10.  Section 50156.14 of the Revenue and Taxation Code is
amended to read:
   50156.14.  (a) A feepayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the feepayer as the direct result of an
erroneous levy or notice to withhold, erroneous processing action,
or erroneous collection action by the board. Bank and third-party
charges include a financial institution's or third party's customary
charge for complying with the levy or notice to withhold instructions
and reasonable charges for overdrafts that are a direct consequence
of the erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action. The charges are those paid by
the feepayer and not waived or reimbursed by the financial
institution or third party. Each claimant applying for reimbursement
shall file a claim with the board that shall be in a form as may be
prescribed by the board. In order for the board to grant a claim, the
board shall determine that both of the following conditions have
been satisfied:
   (1) The erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action was caused by board error.
   (2) Prior to the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action, the feepayer
responded to all contacts by the board and provided the board with
any requested information or documentation sufficient to establish
the feepayer's position. This provision may be waived by the board
for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date the bank and third-party charges were incurred by the
feepayer. Within 30 days from the date the claim is received, the
board shall respond to the claim. If the board denies the claim, the
feepayer shall be notified in writing of the reason or reasons for
the denial of the claim.
  SEC. 11.  Section 55335 of the Revenue and Taxation Code is amended
to read:
   55335.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold, erroneous processing action,
or erroneous collection action by the board. Bank and third-party
charges include a financial institution's or third party's customary
charge for complying with the levy or notice to withhold instructions
and reasonable charges for overdrafts that are a direct consequence
of the erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action. The charges are those paid by
the taxpayer and not waived or reimbursed by the financial
institution or third party. Each claimant applying for reimbursement
shall file a claim with the board that shall be in a form as may be
prescribed by the board. In order for the board to grant a claim, the
board shall determine that both of the following conditions have
been satisfied:
   (1) The erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action was caused by board error.
   (2) Prior to the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action, the taxpayer
responded to all contacts by the board and provided the board with
any requested information or documentation sufficient to establish
the taxpayer's position. This provision may be waived by the board
for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date the bank and third-party charges were incurred by the
taxpayer. Within 30 days from the date the claim is received, the
board shall respond to the claim. If the board denies the claim, the
taxpayer shall be notified in writing of the reason or reasons for
the denial of the claim.
  SEC. 12.  Section 60633.1 of the Revenue and Taxation Code is
amended to read:
   60633.1.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold, erroneous processing action,
or erroneous collection action by the board. Bank and third-party
charges include a financial institution's or third party's customary
charge for complying with the levy or notice to withhold instructions
and reasonable charges for overdrafts that are a direct consequence
of the erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action. The charges are those paid by
the taxpayer and not waived or reimbursed by the financial
institution or third party. Each claimant applying for reimbursement
shall file a claim with the board that shall be in a form as may be
prescribed by the board. In order for the board to grant a claim, the
board shall determine that both of the following conditions have
been satisfied:
   (1) The erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action was caused by board error.
   (2) Prior to the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action, the taxpayer
responded to all contacts by the board and provided the board with
any requested information or documentation sufficient to establish
the taxpayer's position. This provision may be waived by the board
for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date the bank and third-party charges were incurred by the
taxpayer. Within 30 days from the date the claim is received, the
board shall respond to the claim. If the board denies the claim, the
taxpayer shall be notified in writing of the reason or reasons for
the denial of the claim.