Bill Text: CA AB2225 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Courts: video trial pilot program: infractions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2012-08-27 - Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(c). [AB2225 Detail]

Download: California-2011-AB2225-Amended.html

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BILL NUMBER: AB 2225	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Perea

                        FEBRUARY 24, 2012

    An act relating to taxation.   An act to
amend Sections 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


   AB 2225, as amended, Perea.  Taxation: cancellation of
indebtedness: mortgage debt forgiveness.   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 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 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 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 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.
This bill would also, under those other laws, allow the board to
extend the 90-day filing period for reasonable cause.  
   The Personal Income Tax Law conforms to specified provisions of
the federal Mortgage Forgiveness Debt Relief Act of 2007, as amended
by the federal Emergency Economic Stabilization Act of 2008, relating
to the exclusion of the discharge of qualified principal residence
indebtedness, as defined, from an individual's income if that debt is
discharged after January 1, 2007, and before January 1, 2013, as
provided.  
   This bill would make findings and declarations regarding mortgage
debt forgiveness and would state the intent of the Legislature to
enact legislation that would conform to federal law with regard to
any extension of the exclusion described above. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    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 for reimbursement 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 was caused by board
error  , erroneous processing action, or erroneous collection
action  .
   (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 of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection action.
This 90-day filing period may be extended by the board for reasonable
cause  . 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 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 for reimbursement 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 of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection action.
This 90-day filing period may be extended by the board for reasonable
cause  . 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 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 for reimbursement 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 of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection action.
This 90   -day filing period may be extended by the board
for reasonable cause  . 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 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 for reimbursement 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 of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection action.
This 90-day filing period may be extended by the board for reasonable
cause  . 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 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 for reimbursement 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 of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection action.
This 90-day filing period may be extended by the board for reasonable
cause . 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 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 for reimbursement 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 of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection action.
This 90-day filing period may be extended by the board for reasonable
cause  . 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 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 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 feepayer and not
waived for reimbursement 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 of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection action.
This 90-day filing period may be extended by the board for reasonable
cause  . 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. 8.    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 for
reimbursement 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  resulted from
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
that was sufficient to establish the feepayer's position. The
requirement of this paragraph may be waived by the board for
reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to withhold
 that is asserted to be erroneous.  , erroneous
processing action, or erroneous collection action. This 90-day filing
  period may be extended by the board for reasonable cause.
 The board shall respond to a claim filed pursuant to this
section within 30 days of receipt. If the board denies a claim, the
taxpayer shall be notified in writing of the reason or reasons for
denial.
   SEC. 9.    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 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 to the feepayer and not
waived for reimbursement 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 of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection action.
This 90-day filing period may be extended by the board for reasonable
cause  . 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. 10.    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 for reimbursement 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 of the  erroneous  levy or notice to withhold
 , erroneous processing action, or erroneous collection action.
This 90-day filing period may be extended by the board for reasonable
cause  . 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. 11.    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 for reimbursement 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 of the  erroneous levy or notice to withhold
 , erroneous processing action, or erroneous collection action.
This 90-day filing period may be extended by the board for reasonable
cause  . 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. 
  SECTION 1.    The Legislature finds and declares
all of the following:
   (a) A homeowner can lose his or her job or become seriously ill
and then be unable to pay the monthly mortgage. In the resulting
short sale or foreclosure, the homeowner not only loses his or her
home, but may also be taxed on relief of indebtedness income that the
homeowner did not receive.
   (b) If the homeowner refinances his or her mortgage, as many
homeowners do, the nature of the debt is changed and the homeowner
may be personally liable for the payment of that debt.
   (c) Absent an extension of the debt forgiveness protections beyond
this year, homeowners will again be subject to taxation on income
they never actually received.  
  SEC. 2.    It is the intent of the Legislature to
enact legislation that would extend the operation of Section 17144.5
of the Revenue and Taxation Code, relating to the exclusion of the
discharge of qualified principal residence indebtedness from an
individual's income, to conform to any federal legislation that
extends the operation of this exclusion in federal income tax law.