Bill Text: CA SB703 | 2017-2018 | Regular Session | Introduced

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

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Bill Title: Transactions and use taxes: Counties of Alameda and Santa Clara and City of Santa Fe Springs.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Passed) 2017-10-10 - Chaptered by Secretary of State. Chapter 651, Statutes of 2017. [SB703 Detail]

Download: California-2017-SB703-Introduced.html

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CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill

No. 703

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Introduced by Senator Skinner

February 17, 2017

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

LEGISLATIVE COUNSEL'S DIGEST

SB 703, as introduced, Skinner. Property taxation: collection: 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 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.

Digest Key

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

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Bill Text

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, “electronic 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, 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 through an electronic funds transfer. 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. transfer or other electronic payment process.

(g) Upon notice of nonacceptance of an electronic funds transfer, 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 (a) (1) deposited in the United States mail in a sealed envelope, properly addressed with the required postage prepaid, or (b) (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 fund 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.