SB 1028 Summary

• Allows the State Board of Equalization to compute interest on a daily basis instead of monthly basis for late tax, fee, and surcharge payments until January 1, 2016, if the board finds it inequitable to use monthly computation.

• Daily interest calculation applies only when payment or prepayment is made one business day after the due date, the taxpayer receives relief from all applicable penalties, and the taxpayer requests an oral hearing before the board.

• Modifies 14 sections of the Revenue and Taxation Code to apply daily interest provisions to Sales and Use Tax, Motor Vehicle Fuel Tax, Use Fuel Tax, Cigarette and Tobacco Products Tax, Alcoholic Beverage Tax, Energy Resources Surcharge, Emergency Telephone Users Surcharge, Hazardous Substances Tax, Integrated Waste Management Fee, Oil Spill Response Prevention and Administration Fees, Underground Storage Tank Maintenance Fee, and Diesel Fuel Tax.

• Provisions do not apply to payments made pursuant to deficiency determinations, determinations where no return was filed, or jeopardy determinations.

• Applies exclusively to electronic payments or prepayments of taxes, fees, and surcharges.