Income tax: overpayment: interest.

Existing law provides, with respect to the administration of the personal income tax, for the payment of interest on overpayments of tax in limited circumstances. This bill would require, if the Controller determines that moneys in the General Fund are insufficient for the payment of all appropriations by the Legislature which are required to be paid in the then fiscal year out of the General Fund and, because of that determination, postpones the issuance of refund warrants, the Controller to pay interest on refunds that are delayed by the Controller's postponement of the issuance of refund warrants. The bill would specify the adjusted annual rate for payment of the interest, the time period over which the interest is to be calculated, and that the provisions of the bill would apply to all refund warrants postponed after February 1, 2009. By authorizing the Controller to expend a specified amount of money for the purpose of paying interest on overpayments of tax under specified circumstances without regard to fiscal year, this bill would make an appropriation. The bill would make a legislative finding and declaration regarding the public purpose served by the bill.