Bill Text: CA SB1528 | 2023-2024 | Regular Session | Amended
Bill Title: California Department of Tax and Fee Administration.
Spectrum: Committee Bill
Status: (Introduced) 2024-04-26 - Set for hearing May 6. [SB1528 Detail]
Download: California-2023-SB1528-Amended.html
|
Amended
IN
Senate
April 18, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1528
| Introduced by Committee on Revenue and Taxation (Senators Glazer (Chair), Ashby, Bradford, Dahle, Dodd, Padilla, and Skinner) |
March 19, 2024 |
An act to amend Sections 6486, 6539, 6597, 7671, 8781, 8829, 30206, 30244, 38416, 38434, 40005, 40076, 41075, 43007, 43201, 43351, 45007, 45201, 46009, 46202, 46302, 50106, 50108, 50113, 50120.2, 55061, 55102, 60311, and 60340 of, and to add Section 60014 to, the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1528, as amended, Committee on Revenue and Taxation.
California Department of Tax and Fee Administration.
(1) The California Department of Tax and Fee Administration (CDTFA) administers various taxes, fees, and surcharges, including, among others, the Sales and Use Tax Law, the Motor Vehicle Fuel Tax Law, the Use Fuel Tax Law, the Cigarette and Tobacco Products Tax Law, the Timber Yield 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, the Diesel Fuel Tax Law, and various taxes and fees collected in accordance with the Fee Collections Procedures Law.
Existing law authorizes the CDTFA, for purposes of the laws described above, if it is not satisfied with a return or the amount required to be paid to
the state by specified taxpayers and feepayers, to compute and determine the amount required to be paid, as specified. Existing law requires the CDTFA to give taxpayers or feepayers written notice of its determination and serve the notice in specified manners, including by personal service.
This bill would additionally authorize the CDTFA to serve the above-described notice by delivering the notice electronically via secure transmission in specified circumstances. The bill would make conforming changes to these provisions.
(2) Existing law, the Sales and Use Tax Law, imposes on any person who knowingly collects sales tax reimbursement or use tax, and who fails to timely remit that sales tax reimbursement or use tax to the CDTFA, a penalty of 40% of the amount not timely remitted. Existing law exempts from that penalty any person whose liability for the unremitted sales tax reimbursement or use tax
averages $1,000 or less per month or does not exceed 5% of the total amount of tax liability for which the tax reimbursement was collected for the period in which tax was due, as specified.
This bill, for determinations made on or after January 1, 2025, would instead exempt from that penalty any person whose liability for the unremitted sales tax reimbursement or use tax averages $1,500 or less per month or does not exceed 25% of the total amount of tax liability for which the tax reimbursement was collected for the period in which tax was due.
(3) This bill would also make various technical and conforming changes, and would update references to the State Board of Equalization to instead refer to the CDTFA.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 6486 of the Revenue and Taxation Code is amended to read:6486.
The department shall give to the retailer or person storing, using, or consuming tangible personal property written notice of its determination. The notice shall be served in one of the following manners:(a) By placing the notice in a sealed envelope, with postage paid, addressed to the retailer or person storing, using, or consuming tangible personal property at their address as it appears in the records of the department. Service made pursuant to this subdivision shall be deemed complete at the time of the deposit of the notice in the United States Post Office, or a mailbox, sub-post office, substation or mail chute or other facility regularly maintained or
provided by the United States Postal Service, without extension of time for any reason.
(b) By personally delivering the notice to the person to be
served. Service made pursuant to this subdivision is complete at the time of delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.
(c) (1) By delivering the notice electronically via secure transmission when either of the following applies:
(A) The taxpayer requests the notice of determination to be sent electronically via secure transmission.
(B) The department has evidence that the taxpayer no longer receives mail at the address of record and has previously provided an address for electronic mail.
(2) Service provided pursuant to paragraph (1) shall be deemed complete at the time the department electronically transmits the notice via the taxpayer’s secure web portal, without extension of time for any reason.
SEC. 2.
Section 6539 of the Revenue and Taxation Code is amended to read:6539.
Any notice required by this article shall be served in the manner prescribed for service of notice of a deficiency determination.SEC. 3.
Section 6597 of the Revenue and Taxation Code is amended to read:6597.
(a) (1) Any person who knowingly collects sales tax reimbursement, as defined in Section 1656.1 of the Civil Code, or who knowingly collects use tax pursuant to Chapter 3 (commencing with Section 6201), and who fails to timely remit that sales tax reimbursement or use tax to the California Department of Tax and Fee Administration, shall be liable for a penalty of 40 percent of the amount not timely remitted.(2) (A) This subdivision shall not apply to any person whose liability for the unremitted sales tax reimbursement or use tax described in paragraph (1) averages one thousand five hundred dollars
($1,500) or less per month or does not exceed 25 percent of the total amount of tax liability for which the sales tax reimbursement or use tax was collected for the period in which tax was due, whichever is greater.
(B) If a person’s failure to make a timely remittance of sales tax reimbursement or use tax is due to a reasonable cause or circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person shall be relieved of the penalty imposed by this subdivision.
(b) For purposes of this section:
(1) “Reasonable cause or circumstances beyond the person’s control” includes, but is not limited to, 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 remittance.
(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) A natural disaster or other catastrophe directly affecting the business operations of the person that caused the person’s failure to make a timely remittance.
(D) The California Department of Tax and Fee Administration failed to send returns or other information to the correct address of record, that caused the person’s failure to make a timely
remittance.
(E) The person’s failure to make a timely remittance occurred only once over a three-year period, or once during the period in which the person was engaged in business, whichever time period is shorter.
(F) The person voluntarily corrected errors in remitting sales tax reimbursement or use tax collected that were made in previous reporting periods and remitted payment of the liability owed as a result of those errors prior to being contacted by the
California Department of Tax and Fee Administration regarding possible errors or discrepancies.
(2) “Sales tax reimbursement” shall also include any sales tax that is advertised, held out, or stated to the public or to any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the retailer.
(c) This section shall apply to any determination made by the California Department of Tax and Fee Administration pursuant to Article 2 (commencing with Section 6481), Article 3 (commencing with Section 6511), and Article 4 (commencing with Section 6536).
(d) The amendments made by the act adding this subdivision shall apply to determinations made on or after January 1,
2025.
SEC. 4.
Section 7671 of the Revenue and Taxation Code is amended to read:7671.
The department shall give the supplier written notice of its determination. The notice shall be served in one of the following manners:(a) By placing the notice in a sealed envelope, with postage paid, addressed to the supplier at the supplier’s address as it appears in the records of the department. Service made pursuant to this subdivision shall be deemed complete at the time of the deposit of the notice in the United States Post Office, or a mailbox, subpost office, substation or mail chute or other facility maintained or provided by the United States Postal Service, without extension of time for any reason.
(b) By personally delivering the notice to the person to be served. Service made pursuant to this subdivision shall be deemed complete at the time of that delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.
(c) (1) By delivering the notice electronically via secure transmission when either of the following applies:
(A) The taxpayer requests the notice of determination to be sent electronically via secure transmission.
(B) The department has evidence that the taxpayer no longer receives mail at the address of record and has previously
provided an address for electronic mail.
(2) Service provided pursuant to paragraph (1) shall be deemed complete at the time the department electronically transmits the notice via the taxpayer’s secure web portal, without extension of time for any reason.
SEC. 5.
Section 8781 of the Revenue and Taxation Code is amended to read:8781.
The department shall give the user written notice of its determination. The notice shall be served in one of the following manners:(a) By placing the notice in a sealed envelope, with postage paid, addressed to the user at their address as it appears in the records of the department. Service made pursuant to this subdivision shall be deemed complete at the time of the deposit of the notice in the United States Post Office, or a mailbox, sub-post office, substation or mail chute or other facility maintained or provided by the United States Postal Service, without extension of time for any reason.
(b) By personally delivering the notice to the person to be served. Service made pursuant to this subdivision shall be deemed complete at the time of such delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.
(c) (1) By delivering the notice electronically via secure transmission when either of the following applies:
(A) The taxpayer requests the notice of determination to be sent electronically via secure transmission.
(B) The department has evidence that the taxpayer no longer receives mail at the address of record and has previously
provided an address for electronic mail.
(2) Service provided pursuant to paragraph (1) shall be deemed complete at the time the department electronically transmits the notice via the taxpayer’s secure web portal, without extension of time for any reason.
SEC. 6.
Section 8829 of the Revenue and Taxation Code is amended to read:8829.
Any notice required by this article may be served in the manner prescribed for service of notice of a deficiency determination.SEC. 7.
Section 30206 of the Revenue and Taxation Code is amended to read:30206.
The department shall give the person written notice of its determination. The notice shall be served in one of the following manners:(a) By placing the notice in a sealed envelope, with postage paid, addressed to the person at their address as it appears in the records of the department. Service made pursuant to this subdivision shall be deemed complete at the time of deposit of the notice in the United States Post Office, or a mailbox, sub-post office, substation or mail chute or other facility regularly maintained or provided by the United States Postal Service, without extension of time for any reason.
(b) By personally delivering the notice to the person to be served. Service made pursuant to this subdivision shall be deemed complete at the time of such delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.
(c) (1) By delivering the notice electronically via secure transmission when either of the following applies:
(A) The taxpayer requests the notice of determination to be sent electronically via secure transmission.
(B) The department has evidence that the taxpayer no longer receives mail at the address of record and has previously
provided an address for electronic mail.
(2) Service provided pursuant to paragraph (1) shall be deemed complete at the time the department electronically transmits the notice via the taxpayer’s secure web portal, without extension of time for any reason.
SEC. 8.
Section 30244 of the Revenue and Taxation Code is amended to read:30244.
Any notice required by this article may be served in the manner prescribed for service of notice of a deficiency determination.SEC. 9.
Section 38416 of the Revenue and Taxation Code is amended to read:38416.
The department shall give to the person written notice of its determination. The notice shall be served in one of the following manners:(a) By placing the notice in a sealed envelope, with postage paid, addressed to the person at their address as it appears in the records of the department. Service made pursuant to this subdivision shall be deemed complete at the time of the deposit of the notice in the United States Post Office, or a mailbox, subpost office, substation, or mail chute or other facility regularly maintained or provided by the United States Postal Service, without extension of time for any reason.
(b) By personally delivering the notice to the person to be served. Service made pursuant to this subdivision is complete at the time of delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.
(c) (1) By delivering the notice electronically via secure transmission when either of the following applies:
(A) The taxpayer requests the notice of determination to be sent electronically via secure transmission.
(B) The department has evidence that the taxpayer no longer receives mail at the address of record and has previously provided an
address for electronic mail.
(2) Service provided pursuant to paragraph (1) shall be deemed complete at the time the department electronically transmits the notice via the taxpayer’s secure web portal, without extension of time for any reason.
SEC. 10.
Section 38434 of the Revenue and Taxation Code is amended to read:38434.
Any notice required by this article shall be served in the manner prescribed for service of notice of a deficiency determination.SEC. 11.
Section 40005 of the Revenue and Taxation Code is amended to read:40005.
“Board” or “department” means the California Department of Tax and Fee Administration.SEC. 12.
Section 40076 of the Revenue and Taxation Code is amended to read:40076.
The department shall give to the electric utility or person consuming electrical energy written notice of its determination. The notice shall be served in one of the following manners:(a) By placing the notice in a sealed envelope with postage paid addressed to the electric utility or person consuming electrical energy at their address as it appears in the records of the department. Service made pursuant to this subdivision shall be deemed complete at the time of the deposit of the notice in the United States Post Office, or a mailbox, sub-post office, substation or mail chute or other facility regularly maintained or provided by the United States Postal
Service, without extension of time for any reason.
(b) By personally delivering the notice to the person to be served. Service made pursuant to this subdivision shall be deemed complete at the time of such delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.
(c) (1) By delivering the notice electronically via secure transmission when either of the following applies:
(A) The feepayer requests the notice of determination to be sent electronically via secure transmission.
(B) The
department has evidence that the feepayer no longer receives mail at the address of record and has previously provided an address for electronic mail.
(2) Service provided pursuant to paragraph (1) shall be deemed complete at the time the department electronically transmits the notice via the feepayer’s secure web portal, without extension of time for any reason.
SEC. 13.
Section 41075 of the Revenue and Taxation Code is amended to read:41075.
The department shall give to the service supplier, seller, or service user written notice of its determination. The notice shall be served in one of the following manners:(a) By placing the notice in a sealed envelope with postage paid addressed to the service supplier, seller, or service user at the service supplier, seller, or service user’s address as it appears in the records of the department. Service made pursuant to this subdivision shall be deemed complete at the time of the deposit of the notice in the United States post office or facility regularly maintained or provided by the United States Postal Service, without extension of time for any reason.
(b) By personally delivering the notice to the person to be
served. Service made pursuant to this subdivision shall be deemed complete at the time of such delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.
(c) (1) By delivering the notice electronically via secure transmission when either of the following applies:
(A) The feepayer requests the notice of determination to be sent electronically via secure transmission.
(B) The department has evidence that the feepayer no longer receives mail at the address of record and has previously provided an address for electronic mail.
(2) Service provided pursuant to paragraph (1) shall be deemed complete at the time the department electronically transmits the notice via the feepayer’s secure web portal, without extension of time for any reason.
SEC. 14.
Section 43007 of the Revenue and Taxation Code is amended to read:43007.
“Board” means the California Department of Tax and Fee Administration.SEC. 15.
Section 43201 of the Revenue and Taxation Code is amended to read:43201.
(a) If the California Department of Tax and Fee Administration is dissatisfied with the return or report filed or the amount of tax paid to the state by any taxpayer, or if no return or report has been filed or no payment or payments of the taxes have been made to the state by a taxpayer, the California Department of Tax and Fee Administration may compute and determine the amount to be paid, based upon any information available to it. In addition, where the California Department of Tax and Fee Administration is authorized to collect a tax for another state agency, the California Department of Tax and Fee Administration may issue a notice of determination or similar billing document for collection of the tax. One or more additional determinations may be made of the amount of tax due for one, or for more than one, period. The amount of tax so determined shall bear interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date the amount of the tax, or any portion thereof, became due and payable until the date of payment. In making a determination, the California Department of Tax and Fee Administration may offset overpayments for a period or periods against underpayments for another period or periods and against the interest and penalties on the underpayments.(b) If any part of the deficiency for which a determination of an additional amount due is found to have been occasioned by negligence or intentional disregard of this part or authorized regulations, a penalty of 10
percent of the amount of the determination shall be added, plus interest as provided above.
(c) If any part of the deficiency for which a determination of an
additional amount due is found to be occasioned by fraud or an intent to evade this part or authorized regulations, a penalty of 25 percent of the amount of the determination shall be added, plus interest as provided in subdivision (a).
(d) The California Department of Tax and Fee Administration shall give to the taxpayer written notice of its determination. The notice shall be served in one of the following manners:
(1) By placing the notice in a sealed envelope, with postage paid, addressed to the taxpayer at their address as it appears in the records of the California Department of Tax and Fee Administration. Service made pursuant to this paragraph shall be deemed complete at the time of the deposit of the notice in a United States Post Office, or a mailbox,
sub-post office, substation or mail chute, or other facility regularly maintained or provided by the United States Postal Service without extension of time for any reason.
(2) By personally delivering the notice to the person to be served. Service made pursuant to this paragraph shall be deemed complete at the time of delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.
(3) (A) By delivering the notice electronically via secure transmission when either of the following applies:
(i) The taxpayer requests the notice of determination to be sent electronically
via secure transmission.
(ii) The California Department of Tax and Fee Administration has evidence that the taxpayer no longer receives mail at the address of record and has previously provided an address for electronic mail.
(B) Service provided pursuant to subparagraph (A) shall be deemed complete at the time the California Department of Tax and Fee Administration electronically transmits the notice via the taxpayer’s secure web portal, without extension of time for any reason.
SEC. 16.
Section 43351 of the Revenue and Taxation Code is amended to read:43351.
The taxpayer against whom a jeopardy determination is made may file a petition for the redetermination thereof, pursuant to Article 4 (commencing with Section 43301), with the California Department of Tax and Fee Administration within 10 days after the service upon the taxpayer of notice of the determination, but they shall, within the 10-day period, deposit with the California Department of Tax and Fee Administration such security as it deems necessary to insure compliance with the provisions of this part. The security may be sold by the California Department of Tax and Fee Administration at public sale if it becomes necessary in order to recover any amount due under this part. Notice of the sale may be served upon the person who deposited the security in the same manner as prescribed for service of notice by Section 43201. Upon any such sale, the surplus, if any, above the amount due under this part shall be returned to the person who deposited the security.SEC. 17.
Section 45007 of the Revenue and Taxation Code is amended to read:45007.
“Board” or “department” means the California Department of Tax and Fee Administration.SEC. 18.
Section 45201 of the Revenue and Taxation Code is amended to read:45201.
(a) If the department is dissatisfied with the report or return filed or the amount of fee paid to the state by any fee payer, or if no report or return has been filed or no payment or payments of the fees have been made to the state by a fee payer, the department may compute and determine the amount to be paid, based upon any information available to it. One or more additional determinations may be made of the amount of fee due for one, or for more than one, period. The amount of fee so determined shall bear interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date the amount of the fee, or any portion thereof, became due and payable until the date of payment. In making a determination, the department may offset overpayments for a period or periods against underpayments for another period or periods and against the interest and penalties on the underpayments.(b) If any part of the deficiency for which a determination of an additional amount due is made is found to have been occasioned by negligence or intentional disregard of this part or regulations adopted by the department pursuant to this part, a penalty of 10 percent of the amount of that determination shall be added, plus interest as provided in subdivision (a).
(c) If any part of the deficiency for which a determination of an additional amount due is made is found to be occasioned by fraud or an intent to evade this part or authorized regulations, a penalty of
25 percent of the amount of the determination shall be added, plus interest as provided in subdivision (a).
(d) The department shall give to the fee payer written notice of its determination. The notice shall be served in one of the following manners:
(1) By placing the notice in a sealed envelope, with postage paid, addressed to the fee payer at their address as it appears in the records of the department. Service made pursuant to this paragraph shall be deemed complete at the time of the deposit of the notice in a United States Post Office, or a mailbox, subpost office, substation, mail chute, or other facility regularly maintained or provided by the United States Postal Service, without extension of time for any reason.
(2) By personally delivering the notice to the person to be
served. Service made pursuant to this paragraph shall be deemed complete at the time of delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.
(3) (A) By delivering the notice electronically via secure transmission when either of the following applies:
(i) The feepayer requests the notice of determination to be sent electronically via secure transmission.
(ii) The department has evidence that the feepayer no longer receives mail at the address of record and has previously provided an address for electronic mail.
(B) Service provided pursuant to subparagraph (A) shall be deemed complete at the time the department electronically transmits the notice via the feepayer’s secure web portal, without extension of time for any reason.
SEC. 19.
Section 46009 of the Revenue and Taxation Code is amended to read:46009.
“Board” or “department” means the California Department of Tax and Fee Administration.SEC. 20.
Section 46202 of the Revenue and Taxation Code is amended to read:46202.
The department shall give to the feepayer written notice of its determination. The notice shall be served in one of the following manners:(a) By placing the notice in a sealed envelope, with postage paid, addressed to the feepayer at their address as it appears in the records of the department. Service made pursuant to this subdivision shall be deemed complete at the time of the deposit of the notice in a United States Post Office, or a mailbox, subpost office, substation or mail chute, or other facility regularly maintained or provided by the United States Postal Service without extension of time for any reason.
(b) By personally delivering the notice to the person to be served. Service made pursuant to this subdivision shall be deemed complete at the time of delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.
(c) (1) By delivering the notice electronically via secure transmission when either of the following applies:
(A) The feepayer requests the notice of determination to be sent electronically via secure transmission.
(B) The department has evidence that the feepayer no longer receives mail at the address of record and has previously
provided an address for electronic mail.
(2) Service provided pursuant to paragraph (1) shall be deemed complete at the time the department electronically transmits the notice via the feepayer’s secure web portal, without extension of time for any reason.
SEC. 21.
Section 46302 of the Revenue and Taxation Code is amended to read:46302.
The feepayer against whom a jeopardy determination is made may file a petition for the redetermination thereof, pursuant to Article 5 (commencing with Section 46351), with the department within 10 days after the service upon the feepayer of notice of the determination, but they shall, within the 10-day period, deposit with the department such security as it determines to be necessary to ensure compliance with this part. The security may be sold by the department at public sale if it becomes necessary in order to recover any amount due under this part. Notice of the sale may be served upon the person who deposited the security in the same manner as prescribed for service of notice by Section 46202. Upon any such sale, the surplus, if any, above the amount due under this part shall be returned to the person who deposited the security.SEC. 22.
Section 50106 of the Revenue and Taxation Code is amended to read:50106.
“Board” or “department” means the California Department of Tax and Fee Administration.(a)The fee imposed pursuant to Sections 25299.41 and 25299.43 of the Health and Safety Code shall be administered and collected by the California Department of Tax and Fee Administration in accordance with this part.
(b)The repeal of certain portions of Chapter 6.75 (commencing with Section 25299.10) of Division 20 of the Health and Safety Code by the act adding this subdivision does not terminate the rights, obligations, or authorities, or any provision necessary to carry out the rights and obligations for the California Department of Tax and Fee Administration to collect unpaid fees pursuant to this part that are imposed pursuant to Article 5 (commencing with Section 25299.40) of Chapter 6.75 of Division 20 of the Health and Safety Code, as that article read on
December 31, 2035, or that have become due before January 1, 2036, including any interest or penalties that accrue before, on, or after January 1, 2036, associated with those unpaid fees, for deposit into the Underground Storage Tank Cleanup Fund, the making of any returns and effecting of any credits, the disposition of the money collected, and the commencement of any action or proceeding regarding fees imposed pursuant to Article 5 (commencing with Section 25299.40) of Chapter 6.75 of Division 20 of the Health and Safety Code.
SEC. 24.SEC. 23.
Section 50113 of the Revenue and Taxation Code is amended to read:50113.
(a) If the department is dissatisfied with the report filed or the amount of fee paid to the department under this part by any fee payer, or if no report has been filed or no payment or payments of the fees have been made to the state by a fee payer, the department may compute and determine the amount to be paid, based upon any information available to it. One or more additional determinations may be made of the amount of fee due for one, or for more than one, period. The amount of fee so determined shall bear interest at the modified rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date the amount of the fee, or any portion thereof, became due and payable until the date of payment. In making a determination, the department may offset overpayments for a period or periods against underpayments for another period or periods and against the interest and penalties on the underpayments.(b) If any part of the deficiency for which a determination of an additional amount due is made is found to have been occasioned by negligence or intentional disregard of this part or regulations adopted by the department pursuant to this part, a penalty of 10 percent of the amount of that determination shall be added, plus interest as provided in subdivision (a).
(c) If any part of the deficiency for which a determination of an additional amount due is made is found to be occasioned by fraud or an intent to evade this part or regulations adopted pursuant to this
part, a penalty of 25 percent of the amount of the determination shall be added, plus interest as provided in subdivision (a).
(d) The department shall give to the fee payer written notice of its determination. The notice shall be served in one of the following manners:
(1) By placing the notice in a sealed envelope, with postage paid, addressed to the fee payer at the fee payer’s address as it appears in the records of the
department. Service made pursuant to this paragraph shall be deemed complete at the time of the deposit in a United States Post Office, or a mailbox, subpost office, substation, mail chute, or other facility regularly maintained or provided by the United States Postal Service, without extension of time for any reason.
(2) By personally delivering the notice to the person to be
served. Service made pursuant to this paragraph shall be deemed complete at the time of delivery. The department may make personal service to a corporation by delivering a notice to any person designated in the Code of Civil Procedure to be served for the corporation with a summons and complaint in a civil action.
(3) (A) By delivering the notice electronically via secure transmission when either of the following applies:
(i) The feepayer requests the notice of determination to be sent electronically via secure transmission.
(ii) The department has evidence that the feepayer no longer receives mail at the address of record and has previously provided an address for electronic
mail.
(B) Service provided pursuant to subparagraph (A) shall be deemed complete at the time the department electronically transmits the notice via the feepayer’s secure web portal, without extension of time for any reason.
SEC. 25.SEC. 24.
Section 50120.2 of the Revenue and Taxation Code is amended to read:50120.2.
The fee payer against whom a jeopardy determination is made may file a petition for the redetermination thereof, pursuant to Article 3 (commencing with Section 50114), with the department within 10 days after the service upon the fee payer of notice of the determination, and they shall, within the 10-day period, deposit with the department that security which the department determines to be necessary to ensure compliance with this part. The security may be sold by the department at a public sale if it becomes necessary in order to recover any amount due under this part. Notice of the sale may be served upon the person who deposited the security in the same manner as prescribed for service of notice by subdivision (d) of Section 50113. After that sale, the surplus, if any, above the amount due under this part shall be returned to the person who deposited the security.SEC. 26.SEC. 25.
Section 55061 of the Revenue and Taxation Code is amended to read:55061.
(a) If the department is dissatisfied with the return filed or the amount of the fee paid to the state by any feepayer, or if no return has been filed or no payment of the fee has been made to the state by a feepayer, the department may compute and determine the amount to be paid, based upon any information available to it. In addition, where the department is authorized to collect a fee for another state agency, or where the department is authorized to collect a fee under circumstances where the feepayer is not required to file a return, the department may issue a notice of determination or similar billing document for collection of the fee. One or more additional determinations may be made of the amount of the fee due for one, or for more than one period. The amount of the fee so determined shall bear interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date the amount of the fee, or any portion thereof, became due and payable until the date of payment. In making a determination, the department may offset overpayments for a period or periods against underpayments for another period or periods and against the interest and penalties on the underpayments.(b) If any part of the deficiency for which a determination of an additional amount due is found to have been occasioned by negligence or intentional disregard of this part or authorized regulations, a penalty of 10 percent of the amount of the determination shall be added, plus interest as provided in subdivision (a).
(c) If any part of the deficiency for which a determination of an
additional amount due is found to be occasioned by fraud or an intent to evade this part or authorized regulations, a penalty of 25 percent of the amount of the determination shall be added, plus interest as provided in subdivision (a).
(d) The department shall give to the feepayer written notice of its determination. The notice shall be served in one of the following manners:
(1) By placing the notice in a sealed envelope, with postage paid, addressed to the feepayer at their address as it appears in the records of the department. Service made pursuant to this paragraph shall be deemed complete at the time of the deposit of the notice in a United States Post Office, or a mailbox, sub-post office, substation or mail chute, or other facility regularly maintained
or provided by the United States Postal Service without extension of time for any reason.
(2) By personally delivering the notice to the person to be served. Service made pursuant to this paragraph shall be deemed complete at the time of delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.
(3) (A) By delivering the notice electronically via secure transmission when either of the following applies:
(i) The feepayer requests the notice of determination to be sent electronically via secure transmission.
(ii) The department has evidence that the feepayer no longer receives mail at the address of record and has previously provided an address for electronic mail.
(B) Service provided pursuant to subparagraph (A) shall be deemed complete at the time the department electronically transmits the notice via the feepayer’s secure web portal, without extension of time for any reason.
SEC. 27.SEC. 26.
Section 55102 of the Revenue and Taxation Code is amended to read:55102.
The feepayer against whom a jeopardy determination is made may file a petition for redetermination thereof, pursuant to Article 3 (commencing with Section 55081), with the department within 10 days after the service upon the feepayer of notice of the determination, but they shall, within the 10-day period, deposit with the department any security that it deems necessary to ensure compliance with the provisions of this part. The security may be sold by the department at public sale if it becomes necessary to do so in order to recover any amount due under this part. Notice of the sale may be served upon the person who deposited the security in the same manner as prescribed for service of notice by Section 55061. Upon any such sale, the surplus, if any, above the amount due under this part shall be returned to the person who deposited the security.SEC. 28.SEC. 27.
Section 60014 is added to the Revenue and Taxation Code, to read:60014.
“Board” or “department” means the California Department of Tax and Fee Administration.SEC. 29.SEC. 28.
Section 60311 of the Revenue and Taxation Code is amended to read:60311.
The department shall give the person written notice of its determination. The notice shall be served in one of the following manners:(a) By placing the notice in a sealed envelope, with postage paid, addressed to the person at that person’s address as it appears in the records of the department. Service made pursuant to this subdivision shall be deemed complete at the time of the deposit of the notice in the United States Post Office, or a mailbox, sub-post office, substation, or mail chute or other facility maintained or provided by the United States Postal Service, without extension of time for any reason.
(b) By personally delivering the notice to the person to be served. Service made pursuant to this subdivision shall be deemed complete at the time of that delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.
(c) (1) By delivering the notice electronically via secure transmission when either of the following applies:
(A) The taxpayer requests the notice of determination to be sent electronically via secure transmission.
(B) The department has evidence that the taxpayer no longer receives mail at the address of record and has previously
provided an address for electronic mail.
(2) Service provided pursuant to paragraph (1) shall be deemed complete at the time the department electronically transmits the notice via the taxpayer’s secure web portal, without extension of time for any reason.
