Laws, Regulations and Annotations
Business Taxes Law Guide – Revision 2023
Tax on Insurers Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 7. Insurance Taxation
Chapter 5. Payment and Collection
Article 2. Interest and Penalties*
12631.5. Interest; daily basis. [Repealed by Stats. 2016, Ch. 264 (AB 2201), in effect January 1, 2017.]
12631.5. Interest; daily basis. (a) If the department finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in subdivision (b) of Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax or prepayment was due until the date of payment, if all of the following occur:
(1) The payment of tax or prepayment was made one business day after the date the tax or prepayment was due.
(2) The person was granted relief from all penalties that applied to that payment of tax or prepayment.
(3) The person files a request for an adjustment.
(b) For purposes of this section, "modified adjusted daily rate" means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c) For purposes of this section, "business day" means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(d) This section shall not apply to any payment made pursuant to a deficiency determination, or a determination where no return has been filed.
(e) This section shall only apply to electronic payments or prepayments of taxes.
History—Added by Stats. 2016, Ch. 264 (AB 2201), in effect January 1, 2017. Stats. 2021, Ch. 432 (SB 824), in effect January 1, 2022, substituted "department" for "board" in subdivision (a); substituted "adjustment" for "oral hearing before the board" after "request for an" in paragraph (a)(3); deleted subdivision (c); and relettered former subdivisions (d), (e), and (f) as subdivisions (c), (d), and (e), respectively.
Note.—Sec. 1, Stats. 2010, Ch. 316 (SB 1028) provides the following: "It is the intent of the Legislature that California's penalty and interest provisions foster and maintain the current high level of compliance, provide appropriate costs and sanctions for noncompliance, and provide a reasonable and administrable degree of latitude for individual taxpayer circumstances and errors. It is the intent of the Legislature in enacting this act, that the State Board of Equalization strictly and narrowly apply its provisions on a case-by-case basis and only in special circumstances."
* Former Article 2, Suits for Taxes, was renumbered as Article 3 by Stats. 1961, p. 1988, operative January 1, 1962.