Taxation: interest: penalties.

(1) The Sales and Use Tax Law imposes a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. That law requires the payment of penalties and interest on a failure to timely pay taxes, from the date on which those amounts became due and payable to the state until the date of payment. That law authorizes the State Board of Equalization, in its discretion, to relieve all or any part of those amounts imposed under specified circumstances. This bill would provide that interest and penalties shall not be assessed against any person for failure to make payments of any taxes imposed under the Sales and Use Tax Law if the tax is required to be collected because of a court decision invalidating a statute, upon which the taxpayer relied, as unconstitutional, as provided. (2) Under existing law, the Franchise Tax Board administers the Personal Income Tax Law and the Corporation Tax Law. Those laws impose penalties and interest upon taxpayers, as specified in those laws. This bill would provide, for taxable years beginning on or after January 1, 2014, that penalties and interest shall not be assessed against any taxpayer with regard to any additional tax, as defined, if the additional tax is required to be collected pursuant to a court holding, made on or after January 1, 2014, that invalidates a provision, upon which the taxpayer relied, as unconstitutional, as provided.