Amended in Assembly March 29, 2016

Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1856

Introduced by Assembly Member Dababneh

February 10, 2016

An act to add begin delete Section 6902.6 end delete begin insert Sections 6902.6, 9152.3, 30362.2, 32402.3, 40112.3, 41101.3, 43452.3, 45652.3, 46502.3, 50140.3, 55222.3, and 60522.3 end insert to the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 1856, as amended, Dababneh. begin delete Sales and use end delete begin insert Excise end insert taxes: claim for refund: begin delete timing. end delete begin insert timely filed claims. end insert

Existing begin delete sales and use tax laws establish end delete begin insert law establishes end insert procedures by which a person may claim a refund for an overpayment of the taxes imposed by begin delete those laws. end delete begin insert sales and use tax laws, the Use Fuel Tax Law, the Cigarette and Tobacco Products Tax Law, the Alcoholic Beverage Tax Law, the Energy Resources Surcharge Law, the Emergency Telephone Users Surcharge Act, the Hazardous Substances Tax Law, the Integrated Waste Management Fee Law, the Oil Spill Response, Prevention, and Administration Fees Law, the Underground Storage Tank Maintenance Fee Law, and the Diesel Fuel Tax Law, and for taxes and fees imposed in accordance with the Fee Collection Procedures Law. end insert Existing law generally requires that a claim be filed within 3 years after specified periods in which the overpayment was made.

This bill begin delete would end delete begin insert would, with respect to each of the above-described laws, end insert provide that a claim that is otherwise begin delete valid, but end delete begin insert valid that end insert is made in begin delete a end delete begin insert the end insert case in which begin delete full payment of end delete the amount of tax begin delete determined end delete begin insert determined, as defined, end insert has not been begin delete made, is a claim only for the purpose of tolling the limitations period for filing a claim for refund and, for all other purposes, would deem the claim filed on the date on which the full payment of the tax is made. The bill would prohibit a credit or refund for any payment for which the limitation period has expired prior to filing the claim or any payment made more than seven years prior to the date that full payment of the tax is made. end delete begin insert paid in full is deemed a timely filed claim for refund with respect to all subsequent payments applied to that determination. end insert The bill would specify that its provisions apply only to claims for refund on or after its effective date.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

SECTION 1.  

Section 6902.6 is added to the Revenue and
Taxation Code, to read:

6902.6.  

(a) A claim for refund that is otherwise valid under

begin delete Section 6904, but is made in a case in which full payment of the
amount of tax determined has not been made, shall be a claim only
for the purpose of tolling the limitations periods set forth in Section
6902. For all other purposes, including the application of Sections
6906, 6932, 6933, and 6934, the claim shall be deemed to be filed
on the date that full payment of the tax is made. However, a credit
or refund shall not be made or allowed for any payment for which
the applicable limitation period, as set forth in Section 6902, has
expired prior to the filing of the claim or any payment made more
than seven years prior to the date that full payment of the tax is
made. end delete begin insert Sections 6902 and 6904 that is made in the case in which
the amount of tax determined has not been paid in full shall be
deemed to be a timely filed claim for refund with respect to all
subsequent payments applied to that determination. end insert

begin insert

(b) For purposes of this section, “amount of tax determined”
means an amount of tax, interest, or penalty, with respect to a
single determination made under Article 2 (commencing with
Section 6481), Article 3 (commencing with Section 6511), or Article
4 (commencing with Section 6536) of Chapter 5.

end insert begin delete

(b)

end delete

begin insert (c) end insert  This section shall apply only to claims for refunds made on
or after the effective date of the act adding this section.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 9152.3 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 9152.3. end insert   

(a) A claim for refund that is otherwise valid under
Sections 9152 and 9153 that is made in the case in which the
amount of tax determined has not been paid in full shall be deemed
to be a timely filed claim for refund with respect to all subsequent
payments applied to that determination.

(b) For purposes of this section, “amount of tax determined”
means an amount of tax, interest, or penalty, with respect to a
single determination made under Article 2 (commencing with
Section 8776), Article 3 (commencing with Section 8801), or Article
4 (commencing with Section 8826) of Chapter 4.

(c) This section shall apply to all claims for refund on or after
the effective date of the act adding this section.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 30362.2 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 30362.2. end insert   

(a) A claim for refund that is otherwise valid under
Sections 30362 and 30363 that is made in the case in which the
amount of tax determined has not been paid in full shall be deemed
to be a timely filed claim for refund with respect to all subsequent
payments applied to that determination.

(b) For purposes of this section, “amount of tax determined”
means an amount of tax, interest, or penalty, with respect to a
single determination made under Article 2 (commencing with
Section 30201), Article 3 (commencing with Section 30221), or
Article 4 (commencing with Section 30241) of Chapter 4.

(c) This section shall apply to all claims for refund on or after
the effective date of the act adding this section.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 32402.3 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 32402.3. end insert   

(a) A claim for refund that is otherwise valid under
Section 32402 that is made in the case in which the amount of tax
determined has not been paid in full shall be deemed to be a timely
filed claim for refund with respect to all subsequent payments
applied to that determination.

(b) For purposes of this section, “amount of tax determined”
means an amount of tax, interest, or penalty, with respect to a
single determination made under Article 2 (commencing with
Section 32271), Article 3 (commencing with Section 32291), or
Article 4 (commencing with Section 32301) of Chapter 6.

(c) This section shall apply to all claims for refund on or after
the effective date of the act adding this section.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 40112.3 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 40112.3. end insert   

(a) A claim for refund that is otherwise valid under
Sections 40112 and 40113 that is made in the case in which the
amount of tax determined has not been paid in full shall be deemed
to be a timely filed claim for refund with respect to all subsequent
payments applied to that determination.

(b) For purposes of this section, “amount of tax determined”
means an amount of tax, interest, or penalty, with respect to a
single determination made under Article 3 (commencing with
Section 40071) or Article 4 (commencing with Section 40081) of
Chapter 4.

(c) This section shall apply to all claims for refund on or after
the effective date of the act adding this section.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 41101.3 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 41101.3. end insert   

(a) A claim for refund that is otherwise valid under
Sections 41101 and 41102 that is made in the case in which the
amount of tax determined has not been paid in full shall be deemed
to be a timely filed claim for refund with respect to all subsequent
payments applied to that determination.

(b) For purposes of this section, “amount of tax determined”
means an amount of tax, interest, or penalty, with respect to a
single determination made under Article 3 (commencing with
Section 41070) or Article 4 (commencing with Section 41080) of
Chapter 4.

(c) This section shall apply to all claims for refund on or after
the effective date of the act adding this section.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 43452.3 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 43452.3. end insert   

(a) A claim for refund that is otherwise valid under
Section 43452 that is made in the case in which the amount of tax
determined has not been paid in full shall be deemed to be a timely
filed claim for refund with respect to all subsequent payments
applied to that determination.

(b) For purposes of this section, “amount of tax determined”
means an amount of tax, interest, or penalty, with respect to a
single determination made under Article 2 (commencing with
Section 43201) or Article 5 (commencing with Section 43350) of
Chapter 3.

(c) This section shall apply to all claims for refund on or after
the effective date of the act adding this section.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 45652.3 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 45652.3. end insert   

(a) A claim for refund that is otherwise valid under
Section 45652 that is made in the case in which the amount of tax
determined has not been paid in full shall be deemed to be a timely
filed claim for refund with respect to all subsequent payments
applied to that determination.

(b) For purposes of this section, “amount of tax determined”
means an amount of tax, interest, or penalty, with respect to a
single determination made under Article 2 (commencing with
Section 45201) or Article 4 (commencing with Section 45351) of
Chapter 3.

(c) This section shall apply to all claims for refund on or after
the effective date of the act adding this section.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 46502.3 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 46502.3. end insert   

(a) A claim for refund that is otherwise valid under
Sections 46502 and 46503 that is made in the case in which the
amount of tax determined has not been paid in full shall be deemed
to be a timely filed claim for refund with respect to all subsequent
payments applied to that determination.

(b) For purposes of this section, “amount of tax determined”
means an amount of tax, interest, or penalty, with respect to a
single determination made under Article 2 (commencing with
Section 46201), Article 3 (commencing with Section 46251), or
Article 4 (commencing with Section 46301) of Chapter 3.

(c) This section shall apply to all claims for refund on or after
the effective date of the act adding this section.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 50140.3 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 50140.3. end insert   

(a) A claim for refund that is otherwise valid under
Section 50140 that is made in the case in which the amount of tax
determined has not been paid in full shall be deemed to be a timely
filed claim for refund with respect to all subsequent payments
applied to that determination.

(b) For purposes of this section, “amount of tax determined”
means an amount of tax, interest, or penalty, with respect to a
single determination made under Article 2 (commencing with
Section 50113) or Article 4 (commencing with Section 50120.1)
of Chapter 3.

(c) This section shall apply to all claims for refund on or after
the effective date of the act adding this section.

end insert

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 55222.3 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 55222.3. end insert   

(a) A claim for refund that is otherwise valid under
Section 55222 that is made in the case in which the amount of tax
determined has not been paid in full shall be deemed to be a timely
filed claim for refund with respect to all subsequent payments
applied to that determination.

(b) For purposes of this section, “amount of tax determined”
means an amount of tax, interest, or penalty, with respect to a
single determination made under Article 2 (commencing with
Section 55061) or Article 4 (commencing with Section 55101) of
Chapter 3.

(c) This section shall apply to all claims for refund on or after
the effective date of the act adding this section.

end insert

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 60522.3 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 60522.3. end insert   

(a) A claim for refund that is otherwise valid under
Sections 60522 and 60523 that is made in the case in which the
amount of tax determined has not been paid in full shall be deemed
to be a timely filed claim for refund with respect to all subsequent
payments applied to that determination.

(b) For purposes of this section, “amount of tax determined”
means an amount of tax, interest, or penalty, with respect to a
single determination made under Article 2 (commencing with
Section 60301), Article 3 (commencing with Section 60310), or
Article 4 (commencing with Section 60330) of Chapter 6.

(c) This section shall apply to all claims for refund on or after
the effective date of the act adding this section.

end insert