text:
(a) (1) On and after January 1, 2016, a local charge imposed by a local agency on prepaid mobile telephony services shall be collected from the prepaid consumer by a seller at the time of sale, pursuant to this part, if the local agency entered into a contract with the department for the department to perform the functions set forth in Section 42103. In the contract, the local agency shall: (A) certify to the department that its ordinance applies its local charge to prepaid mobile telephony services and that the local agency agrees to indemnify, and hold and save harmless, the department, its officers, agents, and employees for any and all liability for damages that may result from collection pursuant to the contract; and (B) certify to the department the amount of the local 911 charge, as set out in Section 42102.5, or the applicable tiered rate for a utility user tax, as set out in Section 42102.

(2) A seller that is not a direct seller shall be permitted to deduct and retain an amount equal to 2 percent of the amounts that are collected by the seller from prepaid consumers for local charges.

(b) In the event that a local agency adopts a new local charge that is imposed on prepaid mobile telephony services after September 1, 2015, the local agency shall enter into a contract with the department to perform the functions set forth in Section 42103, on or before December 1, with collection of the local charge to commence April 1 of the next calendar year. In the contract, the local agency shall certify to the department: (1) that its ordinance applies its local charge to prepaid mobile telephony services and that the local agency agrees to indemnify, and hold and save harmless, the department, its officers, agents, and employees for any and all liability for damages that may result from collection pursuant to the contract; and (2) the amount of the local 911 charge, as set out in Section 42102.5, or the applicable tiered rate for a utility user tax, as set out in Section 42102.

(c) In the event that a local agency increases its local charge after September 1, 2015, the local agency shall provide the department with written notice of the increased local charge on or before December 1, with collection of the local charge to commence April 1 of the next calendar year.

(d) In the event that a local agency reduces or eliminates a local charge on prepaid mobile telephony services, the local agency shall provide the department with written notice as required for the department to meet its obligations pursuant to subdivision (a) of Section 42101.6.

(e) Notwithstanding subdivision (a), through and including December 31, 2015, a prepaid MTS provider may elect to remit the local charge to the appropriate local taxing jurisdiction based on the applicable tax rate of Section 42102, Section 42102.5, or both, and those remittances shall be deemed to be in full compliance with the local ordinance imposing a local charge on prepaid mobile telephony service.

history: (History: Amended by Stats. 2020, Ch. 179, Sec. 3. (SB 1441) Effective January 1, 2021. Repealed as of January 1, 2031, pursuant to Section 42111.)


kind: section

code: RTC

text:
(a) (1) The department shall post, for each local jurisdiction, the rate or rates of the local charges, as calculated pursuant to Sections 42102 and 42102.5, that each local jurisdiction has adopted, not later than December 1 of each year, on its internet website. The posted combined rate shall be the rate that applies to all retail transactions during the calendar year beginning April 1 following the posting.

(2) The department shall also separately post on its internet website the individual rates for each of the individual local charges reported pursuant to Section 42101.5.

(3) Notwithstanding paragraph (1), if a local agency notifies the department pursuant to subdivision (d) of Section 42101.5 that the posted rate is inaccurate or it no longer imposes a local charge or local charges or that the rate of its local charge or local charges has decreased, the department shall promptly post a recalculated rate that is applicable to the jurisdiction of that local agency. The change shall become operative on the first day of the calendar quarter commencing more than 60 days from the date the local agency notifies the department of the inaccuracy or that it no longer imposes a local charge or that the rate of its local charge has decreased. Nothing in this section modifies the notice obligations of Section 799 of the Public Utilities Code. However, beginning January 1, 2016, the notification and implementation requirements of paragraphs (5) and (6) of subdivision (a) of Section 799 of the Public Utilities Code shall not apply to prepaid mobile telephony services.

(4) A seller collecting the local charges pursuant to this part may rely upon the accuracy of the information posted on the department’s internet website in collecting and remitting all amounts of local charges.

(b) Except for amounts retained pursuant to subdivision (c), and except as provided in subdivision (d) for a seller that is a direct seller, all amounts of local charges collected by sellers shall be remitted to the department pursuant to Sections 42103, 42103.1, and 42103.2.

(c) A seller that is not a direct seller shall be permitted to deduct and retain an amount equal to 2 percent of the amounts that are collected by the seller from prepaid consumers for local charges.

(d) A direct seller shall remit the local charges to the local jurisdiction or local agency imposing the local charge. Remittance of the local charges shall be separately identified from any other local taxes or other charges that are remitted to the local jurisdiction or local agency imposing the local tax or other charge. The amounts remitted to the local jurisdiction or local agency imposing the local charge pursuant to this paragraph shall be deposited into the respective local jurisdiction or local agency account.

(e) A direct seller shall use the amounts posted by the department pursuant to subdivision (a) when determining what amounts to remit to each local jurisdiction or local agency.

(f) The amount of the local charges shall be separately stated on an invoice, receipt, or other similar document that is provided to the prepaid consumer of mobile telephony services by the seller, or otherwise disclosed electronically to the prepaid consumer, at the time of the retail transaction.

(g) The local charge that is required to be collected by a seller and any amount not returned to the prepaid consumer of mobile telephony services that is not owed as part of the local charge, but was collected from the prepaid consumer under the representation by the seller that it was owed as part of the local charge, constitute debts owed by the seller jointly to this state, for purposes of collection on behalf of, and payment to, the local jurisdiction and to the local jurisdiction imposing that local charge.

(h) A seller that has collected any amount of local charges in excess of the amount imposed by this part and actually due from a prepaid consumer may refund that amount to the prepaid consumer, even though the amount has already been paid over to the department and no corresponding credit or refund has yet been secured. Any seller making a refund of any charge to a prepaid consumer may repay therewith the amount of the charges paid.

(i) (1) Every prepaid consumer of mobile telephony services in this state is liable for any local charges until they have been paid to this state, except that payment to a seller registered under this part relieves the prepaid consumer from further liability for the local charges. Any local charge collected from a prepaid consumer that has not been remitted to the department shall be a debt owed jointly to the state, for purposes of collection on behalf of, and payment to, the local jurisdiction and to the local jurisdiction imposing the local charge by the person required to collect and remit the local charge. Nothing in this part shall impose any obligation upon a seller to take any legal action to enforce the collection of the local charge imposed by this section.

(2) A credit shall be allowed against, but shall not exceed, the local charges imposed on any prepaid consumer of mobile telephony services by this part to the extent that the prepaid consumer has paid local charges on the purchase to any other state, political subdivision thereof, or the District of Columbia. The credit shall be apportioned to the charges against which it is allowed in proportion to the amounts of those charges.

(j) (1) A seller is relieved from liability to collect the local charges imposed by this part that became due and payable, insofar as the base upon which the charges are imposed is represented by accounts that have been found to be worthless and charged off for income tax purposes by the seller or, if the seller is not required to file income tax returns, charged off in accordance with generally accepted accounting principles. A seller that has previously paid the charges may, under rules and regulations prescribed by the department, take as a deduction on its return the amount found worthless and charged off by the seller. If any of those accounts are thereafter, in whole or in part, collected by the seller, the amount so collected shall be included in the first return filed after its collection and the charges shall be paid with the return.

(2) The department may, by regulation, adopt other rules with respect to uncollected or worthless accounts it deems necessary to the fair and efficient administration of this part.

history: (History: Added by Stats. 2020, Ch. 179, Sec. 4. (SB 1441) Effective January 1, 2021. Repealed as of January 1, 2031, pursuant to Section 42111.)

division: 2. OTHER TAXES

path: 2. OTHER TAXES > 21.1. Local Prepaid Mobile Telephony Services Collection Act


text:
(a) Commencing January 1, 2017, a seller, other than a direct seller, with de minimis sales of prepaid mobile telephony services of less than fifteen thousand dollars ($15,000) during the previous calendar year is not required to collect local charges pursuant to Section 42101.5. The Department of Finance shall annually review and adjust that de minimis sales threshold as necessary to minimize program administration costs and maintain revenues to support program administration and enforcement activities. Any adjustment of the de minimis sales threshold shall become operative on January 1 of the following calendar year. Nothing in this section prevents a seller from collecting and remitting the surcharge on a voluntary basis even if the seller meets the de minimis sales threshold.

(b) For purposes of this section, the de minimis sales threshold shall be based on the aggregate of all sales of prepaid mobile telephone services subject to the local charges at all retail locations operated by the seller and not the individual sales at each retail location operated by the seller.

history: (History: Amended by Stats. 2020, Ch. 179, Sec. 5. (SB 1441) Effective January 1, 2021. Repealed as of January 1, 2031, pursuant to Section 42111.)

part: 21.1. Local Prepaid Mobile Telephony Services Collection Act


text:
(a) For purposes of this part, a retail transaction occurs in the state under any of the following circumstances:

(1) The prepaid consumer makes the retail transaction in person at a business location in the state (point-of-sale transaction).

(2) If paragraph (1) is not applicable, the prepaid consumer’s address is in the state (known-address transaction). A known-address transaction occurs in the state under any of the following circumstances:

(A) The retail sale involves shipping of an item to be delivered to, or picked up by, the prepaid consumer at a location in the state.

(B) If the prepaid consumer’s address is known by the seller to be in the state, including if the seller’s records maintained in the ordinary course of business indicate that the prepaid consumer’s address is in the state and the records are not made or kept in bad faith.

(C) The prepaid consumer provides an address during consummation of the retail transaction that is in the state, including an address provided with respect to the payment instrument if no other address is available and the address is not given in bad faith.

(3) If an address is not available to the seller to determine whether any of the circumstances in paragraph (2) exist, the transaction will be deemed to be a known-address transaction occurring in this state if the mobile telephone number is associated with a location in this state.

(b) (1) A retail transaction shall occur at only one location for purposes of determining local charges. If the retail transaction is a point-of-sale transaction, the consumption of, use of, or access to, the prepaid mobile telephony service shall be presumed to be at that location.

(2) If the retail transaction is a known-address transaction, the location shall be as determined in descending order beginning with subparagraph (A) of paragraph (2) of subdivision (a); if subparagraph (A) of that paragraph is inapplicable, then pursuant to subparagraph (B) of that paragraph; if both subparagraphs (A) and (B) of that paragraph are inapplicable, then subparagraph (C) of that paragraph; and if subparagraphs (A), (B), and (C) of that paragraph are inapplicable, then paragraph (3) of subdivision (a). In a known-address transaction, the consumption of, use of, or access to the prepaid mobile telephony service shall be presumed to be at the known address.

(c) (1) A seller that relies in good faith on information provided by the department to match the location of a point-of-sale transaction to the applicable local charges, that collects that amount from the prepaid consumer, and that remits the amount to the department in compliance with this part, shall not be liable for any additional local charges and shall not be required to refund any amounts collected and paid to the department to the prepaid consumer.

(2) For a known-address transaction, the seller may collect the local charges that correspond to the five-digit postal ZIP Code of the prepaid consumer’s address. A seller that, with due diligence and in good faith, relies on credible information to match the five-digit postal ZIP Code of the prepaid consumer’s address to the applicable local charges amount, that collects that amount from the prepaid consumer, and that remits the amount to the department in compliance with this part, shall not be liable for any additional local charges and shall not be required to refund any amounts collected and paid to the department to the prepaid consumer, even if the five-digit postal ZIP Code of the prepaid consumer’s address that the seller uses corresponds to more than one local charge.

history: (History: Added by Stats. 2020, Ch. 179, Sec. 6. (SB 1441) Effective January 1, 2021. Repealed as of January 1, 2031, pursuant to Section 42111.)


text:
(a) Except as provided in subdivisions (b) and (c), if prepaid mobile telephony services are sold in combination with mobile data services or any other services or products that are not subject to the local charges for a single price, then the local charges shall apply to the entire price unless the seller can identify the mobile data services and other services or products from its books and records kept in the ordinary course of business.

(b) If prepaid mobile telephony services are sold with a mobile telephone service communication device, commonly termed a cellular telephone, for a single, nonitemized price, then the local charges shall apply to the entire nonitemized price, except if the purchase price for the cellular telephone component of the bundled charge is disclosed to the prepaid consumer on a receipt, invoice, or other written or electronic documentation provided to the prepaid consumer, the local charges may be calculated excluding the separately stated price of the cellular telephone.

(c) If a minimal amount of prepaid mobile telephony service is sold for a single, nonitemized price with a mobile telephony service communications device, the seller shall not apply the local charges to the transaction. For these purposes, a service allotment denominated as 10 minutes or less, or five dollars ($5) or less, is a minimal amount.

history: (History: Added by Stats. 2020, Ch. 179, Sec. 7. (SB 1441) Effective January 1, 2021. Repealed as of January 1, 2031, pursuant to Section 42111.)


text:
(a) Notwithstanding any other law, on and after January 1, 2016, the authority of a city, county, or city and county, which includes a charter city, county, or city and county, to impose a utility user tax on the consumption of prepaid mobile telephony service in the city, county, or city and county at the rate as specified in an ordinance authorized pursuant to Section 7284.2 or any other law is suspended, and the utility user tax rate to be applied instead during the period under any ordinance as so adopted is the applicable of the following:

(1) In the case of a city, county, or city and county that has adopted an ordinance to impose a utility user tax on the consumption of prepaid communication services in the city, county, or city and county at the rate of less than 1.5 percent, the rate shall be 0 percent.

(2) In the case of a city, county, or city and county that has adopted an ordinance to impose a utility user tax on the consumption of prepaid communication services in the city, county, or city and county at the rate of 1.5 percent or more but less than 2.5 percent, the rate shall be 1.5 percent.

(3) In the case of a city, county, or city and county that has adopted an ordinance to impose a utility user tax on the consumption of prepaid communication services in the city, county, or city and county at the rate of 2.5 percent or more but less than 3.5 percent, the rate shall be 2.5 percent.

(4) In the case of a city, county, or city and county that has adopted an ordinance to impose a utility user tax on the consumption of prepaid communication services in the city, county, or city and county at the rate of 3.5 percent or more but less than 4.5 percent, the rate shall be 3.5 percent.

(5) In the case of a city, county, or city and county that has adopted an ordinance to impose a utility user tax on the consumption of prepaid communication services in the city, county, or city and county at the rate of 4.5 percent or more but less than 5.5 percent, the rate shall be 4.5 percent.

(6) In the case of a city, county, or city and county that has adopted an ordinance to impose a utility user tax on the consumption of prepaid communication services in the city, county, or city and county at the rate of 5.5 percent or more but less than 6.5 percent, the rate shall be 5.5 percent.

(7) In the case of a city, county, or city and county that has adopted an ordinance to impose a utility user tax on the consumption of prepaid communication services in the city, county, or city and county at the rate of 6.5 percent or more but less than 7.5 percent, the rate shall be 6.5 percent.

(8) In the case of a city, county, or city and county that has adopted an ordinance to impose a utility user tax on the consumption of prepaid communication services in the city, county, or city and county at the rate of 7.5 percent or more but less than 9 percent, the rate shall be 7.5 percent.

(9) In the case of a city, county, or city and county that has adopted an ordinance to impose a utility user tax on the consumption of prepaid communication services in the city, county, or city and county at the rate of 9 percent or more, the rate shall be 9 percent.

(b) Subdivision (a) is a self-executing provision that operates without regard to any decision or act on the part of any city, county, or city and county. A change in a utility user tax rate resulting from either the suspension of, or the termination of the suspension of, a utility user rate adopted by a city, county, or city and county set forth in subdivision (a) is not subject to voter approval under either statute or Article XIII C of the California Constitution.

(c) Notwithstanding subdivision (a), a city, county, or city and county may levy, increase, or extend a utility user tax at any rate on the consumption of communication services, including a utility user tax on the consumption of prepaid mobile telephony service, except that during the period on and after January 1, 2016, any utility user tax rate on prepaid mobile telephony service under any ordinance as so adopted shall be the applicable rate specified in subdivision (a).

(d) On and after January 1, 2016, this part shall be all of the following:

(1) The exclusive method for both of the following:

(A) Collecting the local utility user taxes, local 911 charges, and any other local charges imposed on consumers using prepaid mobile telephony services.

(B) Defining the scope of the tax or charge with respect to prepaid mobile telephony services.

(2) For the taxation of prepaid mobile telephony services only, the complete substitute for the utility user tax rate set out in the local ordinance with the applicable tiered rate as established by the Legislature.

(3) This part shall not preempt, limit, or affect the general authority of local jurisdictions to impose a utility user tax, local 911 charge, or any other local charges.

history: (History: Added by Stats. 2014, Ch. 885, Sec. 9. (AB 1717) Effective September 30, 2014. Repealed as of January 1, 2031, pursuant to Section 42111.)


text:
(a) Notwithstanding any other law, on and after January 1, 2016, the authority of a city, county, or city and county, which includes a charter city, county, or city and county, to impose a charge, that applies to prepaid mobile telephony service, for access to communication services or access to local “911” emergency telephone systems in the city, county, or city and county at the rate as specified in an ordinance is suspended, and the rate to be applied instead during that period under any ordinance as so adopted is the applicable of the following:

(1) In the case of a city, county, or city and county that has adopted an ordinance to impose a charge that applies to prepaid mobile telephony service for access to communication services or access to local “911” emergency telephone systems in the city, county, or city and county at the rate of less than one dollar ($1) per month per access line, including any adjustments for inflation, the rate shall be 0 percent.

(2) In the case of a city, county, or city and county that has adopted an ordinance to impose a charge that applies to prepaid mobile telephony service for access to communication services or access to local “911” emergency telephone systems in the city, county, or city and county at a specified percentage or at the rate of one dollar ($1) per month per access line, including any adjustments for inflation, or more, the rate shall be the specified percentage or the rate obtained by dividing the dollar amount by 50, rounded to the nearest one-tenth of 1 percent.

(b) Subdivision (a) is a self-executing provision that operates without regard to any decision or act on the part of any city, county, or city and county. A change in an access charge rate resulting from either the suspension of, or the termination of the suspension of, a charge adopted by a city, county, or city and county set forth in subdivision (a) is not subject to voter approval under either statute or Article XIII C of the California Constitution.

(c) Notwithstanding subdivision (a), a city, county, or city and county may levy, increase, or extend a charge at any rate, that applies to prepaid mobile telephony services, for access to communication services or access to local “911” emergency telephone systems in the city, county, or city and county, except that during the period on and after January 1, 2016, any charge on prepaid mobile telephony service under any ordinance as so adopted shall be the applicable rate specified in subdivision (a).


text:
(a) (1) The department shall perform all functions incident to the collection of the local charges of a local jurisdiction or local agency and shall collect and administer the local charges pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001)) in the manner prescribed by this part, subject to the limitations set forth in Section 42105. For purposes of this part, the references in the Fee Collection Procedures Law to “fee” shall include the local charges imposed by this part, and references to “feepayer” shall include a person required to pay the local charges imposed by this part, which includes the sellers, who shall be required to register with the department.

(2) Notwithstanding Article 1.1 (commencing with Section 55050) of Chapter 3 of Part 30, any person required, or that elects, to remit amounts due under Part 1 (commencing with Section 6001) by electronic funds transfer pursuant to Article 1.2 (commencing with Section 6479.3) of Chapter 5 of Part 1 shall remit the local charges due under this section by electronic funds transfer.

(b) All local charges collected by the department shall be deposited in the Local Charges for Prepaid Mobile Telephony Services Fund, which is hereby created in the State Treasury, and shall be held in trust for the local taxing jurisdiction, and shall not be used for any other purpose. Local charges shall consist of all taxes, charges, interest, penalties, and other amounts collected and paid to the department, less payments for refunds and reimbursement to the department for expenses incurred in the administration and collection of the local charges. The department shall transmit the funds to the local jurisdictions periodically as promptly as feasible. The transmittals required under this section shall be made at least once in each calendar quarter. The department shall furnish a quarterly statement indicating the amounts paid and withheld for expenses of the department incurred for the administration and collection of local charges.

(c) (1) The department shall prescribe and adopt rules and regulations as may be necessary or desirable for the administration and collection of local charges and the distribution of the local charges collected.

(2) The department may prescribe, adopt, and enforce any emergency regulations as necessary to implement this part. Any emergency regulation prescribed, adopted, or enforced pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare.

(d) The department shall establish procedures to be used by a seller, including a direct seller, to document that a sale is not a retail transaction.

(e) The department’s audit duties under this part shall be limited to verification that the seller complied with this part.

(f) Subject to the confidentiality requirements of Sections 7284.6, 7284.7, and 19542, the department shall make available to a requesting local jurisdiction or local agency any information that is reasonably available to the department regarding the proper collection and remittance of a local charge of the local jurisdiction or local agency by a seller, including a direct seller.

(g) The department may contract with a third party for purposes of this part, solely in connection with the following department duties:

(1) To allocate and transmit collected local charges in the Local Charges for Prepaid Mobile Telephony Services Fund pursuant to subdivision (b) to the appropriate local jurisdictions.

(2) To audit proper collection and remittance of the local charge pursuant to this part.

(3) To respond to requests from sellers, consumers, boards, and others regarding issues pertaining to local charges that are within the scope of the department’s duties.

(h) For purposes of this part, any third-party contract under subdivision (g) shall be subject to the following limitations:

(1) Any third party shall, to the same extent as the department, be subject to subdivision (b) of Section 55381, relating to unlawful disclosures.

(2) A third-party contract shall not provide, in whole or in part, in any manner a contingent fee arrangement as payment for services rendered. For purposes of this section, “contingent fee” includes, but is not limited to, a fee that is based on a percentage of the tax liability reported on a return, a fee that is based on a percentage of the taxes owed, or a fee that depends on the specific tax result attained.

(i) Except for those procedures established pursuant to subdivision (d) and the sharing of information pursuant to subdivision (f), this section does not apply to direct sellers.

history: (History: Amended by Stats. 2020, Ch. 179, Sec. 8. (SB 1441) Effective January 1, 2021. Repealed as of January 1, 2031, pursuant to Section 42111.)


text:
The department shall establish remittance schedules and methods for payment of the local charges that use existing methods established under the Sales and Use Tax Law (Part 1 (commencing with Section 6001)), including all of the following:

(a) The local charges, minus the amount retained by the seller pursuant to subdivision (c) of Section 42101.6, are due and payable to the department quarterly on or before the last day of the month following each calendar quarter.

(b) On or before the last day of the month following each calendar quarter, a return for the preceding calendar quarter shall be filed using electronic media with the department.

(c) Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the department.

(d) This section applies only to those remittances of the local charges that are required to be remitted to the department pursuant to this part.

history: (History: Added by Stats. 2020, Ch. 179, Sec. 9. (SB 1441) Effective January 1, 2021. Repealed as of January 1, 2031, pursuant to Section 42111.)


text: Every seller, except a seller that is not required to collect the local charges pursuant to Section 42101.7, shall register with the department. Nothing in this section prevents a seller from registering with the department on a voluntary basis to collect and remit the charges even if the seller meets the de minimis sales threshold provided by Section 42101.7. The department shall establish a method for registration of sellers under this part that uses the existing registration process for a seller’s permit established pursuant to Section 6066 of the Sales and Use Tax Law (Part 1 (commencing with Section 6001)). Every application for registration shall be made upon a form prescribed by the department and shall set forth the name under which the applicant transacts or intends to transact business, the location of its place or places of business, and any other information that the department may require. An application for registration shall be authenticated in a form or pursuant to methods as may be prescribed by the department.

history: (History: Added by Stats. 2020, Ch. 179, Sec. 10. (SB 1441) Effective January 1, 2021. Repealed as of January 1, 2031, pursuant to Section 42111.)


text:
(a) To provide adequate cashflow for expenses incurred by the board in the administration and collection of the local charges, the Director of Finance may approve a short-term loan in the 2015–16 fiscal year from the General Fund to the Local Charges for Prepaid Mobile Telephony Services Fund.

(b) For the purposes of this section, a short-term loan is a transfer that is made subject to the following conditions:

(1) Any amount loaned is to be repaid in full during the same fiscal year in which the loan was made, except that the repayment may be delayed until a date not more than six months after the date of enactment of the annual Budget Act for the subsequent fiscal year.

(2) Loans shall be repaid whenever the funds are needed to meet cash expenditure needs in the loaning fund or account.

history: (History: Added by Stats. 2015, Ch. 25, Sec. 56. (SB 84) Effective June 24, 2015. Repealed as of January 1, 2031, pursuant to Section 42111.)


text:
(a) The local jurisdiction or local agency that has adopted an ordinance to impose a local charge that applies to prepaid mobile telephony service shall be solely responsible for:

(1) Defending any claim regarding the validity of the ordinance in its application to prepaid mobile telephony service.

(2) Interpreting any provision of the ordinance, except to the extent specifically superseded by this statute.

(3) Responding to any claim for refund by a consumer arising under subdivision (b), (c), or (d). The claim shall be processed in accordance with the provisions of the local enactment that allows the claim to be filed.

(4) Certifying that the local jurisdiction’s or local agency’s ordinance applies the local charge to prepaid mobile telephony services and agreeing to indemnify and hold harmless the department, its officers, agents, and employees for any and all liability for damages that may result from collection of the local charge.

(5) Reallocation of local charges as a result of correcting errors relating to the location of the point of sale of a seller or the known address of a consumer, for up to two past quarters from the date of knowledge.

(6) Enforcement, including audits, of the collection and remittance of local charges by direct sellers pursuant to the local jurisdiction’s or local agency’s ordinance.

(b) A consumer may rebut the presumed location of the retail transaction to the city or county clerk of the local jurisdiction, as provided in subdivision (b) of Section 42101.8 by filing a claim and declaration under penalty of perjury on a form established by the city or county clerk of the local jurisdiction or local agency indicating the actual location of the retail sale. The claim shall be processed in accordance with the provisions of the local enactment that allows the claim to be filed.

(c) A consumer that is exempt from the local charge under the local enactment may file a claim for a refund from the local jurisdiction or local agency in accordance with the refund provisions of the local enactment that allows the claim to be filed.

(d) In connection with any actions or claims relating to or arising from the invalidity of a local tax ordinance, in whole or in part, the seller shall not be liable to any consumer as a consequence of collecting the tax. In the event a local jurisdiction or local agency is ordered to refund the tax, it shall be the sole responsibility of the local jurisdiction or local agency to refund the tax. In any action seeking to enjoin collection of a local charge by a seller, in any action seeking declaratory relief concerning a local charge, in any action seeking a refund of a local charge, or in any action seeking to otherwise invalidate a local charge, the sole necessary party defendant in the action shall be the local jurisdiction or local agency on whose behalf the local charge is collected, and the seller collecting the local charge shall not be named as a party in the action. There shall be no recovery from the state for the imposition of any unconstitutional or otherwise invalid local charge that is collected pursuant to this part.

history: (History: Amended by Stats. 2020, Ch. 179, Sec. 11. (SB 1441) Effective January 1, 2021. Repealed as of January 1, 2031, pursuant to Section 42111.)


text:
(a) For purposes of this section:

(1) “Quarterly local charges” means the total amount of local charges transmitted by the department to a city, county, or city and county for a calendar quarter.

(2) “Refund” means the amount of local charges deducted by the department from a city’s, county’s, or city and county’s quarterly local charges in order to pay the city’s, county’s, or city and county’s share of a local charge refund due to one taxpayer.

(3) “Offset portion” means that portion of the refund that exceeds the greater of fifty thousand dollars ($50,000) or 20 percent of the city’s, county’s, or city and county’s quarterly local charges.

(b) Except as provided in subdivision (c), if the department has deducted a refund from a city’s, county’s, or city and county’s quarterly local charges which includes an offset portion, then the following provisions apply:

(1) Within three months after the department has deducted an offset portion, the city, county, or city and county may request the department to transmit the offset portion to the city, county, or city and county.

(2) As promptly as feasible after the department receives the city’s, county’s, or city and county’s request, the department shall transmit to the city, county, or city and county the offset portion as part of the department’s periodic transmittal of local charges.

(3) The department shall thereafter deduct a pro rata share of the offset portion from future transmittals of local charges to the city, county, or city and county over a period to be determined by the department, but not less than two calendar quarters and not more than eight calendar quarters, until the entire amount of the offset portion has been deducted.

(c) The department shall not transmit the offset portion of the refund to the city, county, or city and county if that transmittal would reduce or delay either the department’s payment of the refund to the taxpayer or the department’s periodic transmittals of local charges to other cities, counties, or city and county.

history: (History: Amended by Stats. 2020, Ch. 179, Sec. 12. (SB 1441) Effective January 1, 2021. Repealed as of January 1, 2031, pursuant to Section 42111.)


text: A local jurisdiction or local agency shall pay to the department its pro rata share of the department’s cost of collection and administration.

history: (History: Amended by Stats. 2020, Ch. 179, Sec. 13. (SB 1441) Effective January 1, 2021. Repealed as of January 1, 2031, pursuant to Section 42111.)


text: The department shall annually prepare a report showing the amount of both reimbursed and unreimbursed costs incurred by it in administering the collection of local charges pursuant to this part.

history: (History: Amended by Stats. 2020, Ch. 179, Sec. 14. (SB 1441) Effective January 1, 2021. Repealed as of January 1, 2031, pursuant to Section 42111.)


text:
(a) Notwithstanding Section 55381, it is unlawful for any person, other than an officer or employee of a county, city and county, city, or district, who obtains access to information contained in, or derived from, local charge records of the department pursuant to subdivision (b), to retain that information after that person’s contract with the county, city and county, city, or district has expired.

(b) (1) When requested by resolution of the legislative body of any county, city and county, city, or district, the department shall permit any duly authorized officer or employee of the county, city and county, city, or district, or other person designated by that resolution, to examine all of the local charge records of the department pertaining to the ascertainment of those local charges to be collected for the county, city and county, city, or district by the department pursuant to contract entered into between the department and the county, city and county, city, or district pursuant to this part. Except as otherwise provided in this section, this subdivision does not allow any officer, employee, or other person authorized or designated by a county, city and county, city, or district to examine any sales or transactions and use tax records of any taxpayer. The costs that are incurred by the department in complying with a request made pursuant to this subdivision shall be deducted by the department from those revenues collected by the department on behalf of the county, city and county, city, or district making the request.

(2) The resolution of the legislative body of the county, city and county, city, or district shall certify that any person designated by the resolution, other than an officer or employee, meets all of the following conditions:

(A) Has an existing contract with the county, city and county, city, or district to examine those local charge records.

(B) Is required by that contract to disclose information contained in, or derived from, those local charge records only to an officer or employee of the county, city and county, city, or district who is authorized by the resolution to examine the information.

(C) Is prohibited by that contract from performing consulting services for a seller during the term of that contract.

(D) Is prohibited by that contract from retaining the information contained in, or derived from, those local charge records, after that contract has expired.

(3) Information obtained by examination of department records pursuant to this subdivision shall be used only for purposes related to the collection of the local charges by the department pursuant to the contract, or for purposes related to other governmental functions of the county, city and county, city, or district set forth in the resolution.

(c) If the department believes that any information obtained pursuant to subdivision (b) has been disclosed to any person not authorized or designated by the resolution of the legislative body of the county, city and county, city, or district, or has been used for purposes not permitted by subdivision (b), the department may impose conditions on access to its local charge records that the department considers reasonable, in order to protect the confidentiality of those records.

(d) Predecessors, successors, receivers, trustees, executors, administrators, assignees, and guarantors, if directly interested, may be given information as to the items included in the measure and amounts of any unpaid local charges or amounts of local charges required to be collected, interest, and penalties.

history: (History: Amended by Stats. 2020, Ch. 179, Sec. 15. (SB 1441) Effective January 1, 2021. Repealed as of January 1, 2031, pursuant to Section 42111.)


text: This part shall remain in effect only until January 1, 2031, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2031, deletes or extends that date.

history: (History: Amended by Stats. 2025, Ch. 553, Sec. 1. (AB 330) Effective January 1, 2026. Repealed as of January 1, 2031, by its own provisions. Note: Repeal affects Part 21.1, commencing with Section 42100.)


text: This part shall be known and may be cited as the Hazardous Substances Tax Law.

history: (History: Added by Stats. 1981, Ch. 756, Sec. 3. Effective September 25, 1981.)

part: 22. HAZARDOUS SUBSTANCES TAX LAW

chapter: 1. General Provisions and Definitions

path: 2. OTHER TAXES > 22. HAZARDOUS SUBSTANCES TAX LAW > 1. General Provisions and Definitions


text: The collection and administration of the fees and taxes imposed by Chapter 6.5 (commencing with Section 25100) of Division 20 of, and Part 2 (commencing with Section 78000) of Division 45 of, the Health and Safety Code, respectively, shall be governed by the definitions in those provisions, unless expressly superseded by the definitions contained in this part.

history: (History: Amended by Stats. 2022, Ch. 258, Sec. 123. (AB 2327) Effective January 1, 2023. Operative January 1, 2024, pursuant to Sec. 130 of Stats. 2022, Ch. 258.)


text:
(a) For purposes of the collection of the fees specified in subdivision (a) of Section 25174 of the Health and Safety Code, a determination by the Department of Toxic Substances Control that a waste is nonhazardous shall be effective only for wastes generated and handled commencing with the month during which the Department of Toxic Substances Control receives a completed application for that determination.

(b) This section shall become operative on July 1, 2022, and shall apply to the fees due after the June 2022 reporting period, including the prepayments due following the reporting period and the fee due and payable following the reporting period.

history: (History: Repealed (in Sec. 82) and added by Stats. 2021, Ch. 73, Sec. 83. (SB 158) Effective July 12, 2021. Operative July 1, 2022, by its own provisions.)


text: Except where the context otherwise requires, the definitions contained in this chapter shall govern the construction of this part.


text: The provisions of this part insofar as they are substantially the same as existing provisions of law relating to the same subject matter shall be construed as restatements and continuations and not as new enactments.


text: Any action or proceeding commenced before this part takes effect, or any right accrued, is not affected by this part, but all procedures taken shall conform to the provisions of this part as far as possible.


text: “Person” means an individual, trust, firm, joint stock company, business concern, corporation, including, but not limited to, a government corporation, partnership, limited liability company, and association. “Person” also includes any city, county, city and county, district, commission, the state or any department, agency, or political subdivision thereof, any interstate body, and the United States and its agencies and instrumentalities to the extent permitted by law.

history: (History: Amended by Stats. 1994, Ch. 1200, Sec. 74. Effective September 30, 1994.)


text: “Board” means the California Department of Tax and Fee Administration.

history: (History: Amended by Stats. 2024, Ch. 499, Sec. 77. (SB 1528) Effective January 1, 2025.)


text: Any fee administered and collected by the board pursuant to this part is a tax for purposes of this part.

history: (History: Amended by Stats. 1986, Ch. 1506, Sec. 15. Effective September 30, 1986.)


text: Any surcharge administered and collected by the board pursuant to this part is considered a tax for purposes of this part.

history: (History: Added by Stats. 1990, Ch. 1267, Sec. 15.)


text: “In this state” means within the exterior limits of the State of California and includes all territory within those limits owned by or ceded to the United States of America.


text: “Department” means the Department of Toxic Substances Control.

history: (History: Amended by Stats. 1992, Ch. 852, Sec. 18. Effective September 22, 1992.)


text: Notwithstanding Section 43010, for purposes of the fees administered under Sections 43056 and 43057, “department” means the State Department of Health Services.

history: (History: Amended by Stats. 1999, Ch. 941, Sec. 38. Effective January 1, 2000.)


text: “Director” means the Director of Toxic Substances Control.

history: (History: Amended by Stats. 1992, Ch. 852, Sec. 20. Effective September 22, 1992.)


text: Notwithstanding Section 43011, for purposes of the fees administered under Sections 43056 and 43057, “director” means the State Director of Health Services.

history: (History: Amended by Stats. 1999, Ch. 941, Sec. 39. Effective January 1, 2000.)


text: For purposes of this part, “taxpayer” means any person liable for the payment of a fee or tax administered pursuant to this part.

history: (History: Amended by Stats. 2026, Ch. 62, Sec. 8. (SB 166) Effective July 6, 2026.)


text: For purposes of this part, “feepayer” has the same meaning as taxpayer, as defined in Section 43012.

history: (History: Added by Stats. 1991, Ch. 1123, Sec. 15. Effective October 14, 1991.)


text: The fees imposed pursuant to Sections 25205.2 and 25205.5 of, and described in Section 25205.25 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.

history: (History: Amended by Stats. 2024, Ch. 72, Sec. 47. (SB 156) Effective July 2, 2024.)

chapter: 2. The Hazardous Substances Tax

article: 1. Imposition of Tax

path: 2. OTHER TAXES > 22. HAZARDOUS SUBSTANCES TAX LAW > 2. The Hazardous Substances Tax > 1. Imposition of Tax


text: The fees imposed pursuant to Section 25205.6 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.

history: (History: Amended by Stats. 2021, Ch. 73, Sec. 89. (SB 158) Effective July 12, 2021.)

article: 1. Imposition of Tax


text: The fee imposed pursuant to Section 105190 of the Health and Safety Code shall be administered and collected by the board in accordance with this part.

history: (History: Amended by Stats. 1996, Ch. 720, Sec. 3. Effective January 1, 1997.)

article: 1. Imposition of Tax


text: The fee imposed pursuant to Section 105310 of the Health and Safety Code shall be administered and collected by the board in accordance with this part.

history: (History: Amended by Stats. 1996, Ch. 1023, Sec. 417. Effective September 29, 1996.)

article: 1. Imposition of Tax


text: Every person, as defined in Section 25118 of the Health and Safety Code, who is subject to the fees specified in Section 105190 of the Health and Safety Code or imposed pursuant to Section 25205.2, 25205.5, or 25205.6 of, or described in Section 25205.25 of, the Health and Safety Code shall register with the California Department of Tax and Fee Administration on forms provided by the California Department of Tax and Fee Administration.

history: (History: Amended by Stats. 2024, Ch. 72, Sec. 48. (SB 156) Effective July 2, 2024.)

article: 2. Registration and Security

path: 2. OTHER TAXES > 22. HAZARDOUS SUBSTANCES TAX LAW > 2. The Hazardous Substances Tax > 2. Registration and Security


text: The board, whenever it deems it necessary to ensure compliance with this part, may require any person subject to this part to place with it any security that the board determines to be reasonable, taking into account the circumstances of that person. Any security in the form of cash, government bonds, or insured deposits in banks or savings and loan institutions shall be held by the board in trust to be used solely in the manner provided by this section. The board may sell the security at public auction if it becomes necessary to do so in order to recover any tax or any amount required to be collected, including any interest or penalty due. Notice of the sale shall be served upon the person who placed the security personally or by mail. If service is made by mail, service shall be addressed to the person at his or her address as it appears in the records of the board. Service shall be made at least 30 days prior to the sale in the case of personal service, and at least 40 days prior to the sale in the case of service by mail. Upon any sale, any surplus above the amounts due shall be returned to the person who placed the security.

history: (History: Amended by Stats. 1994, Ch. 903, Sec. 14. Effective January 1, 1995.)

article: 2. Registration and Security


text:
(a) The California Department of Tax and Fee Administration shall establish and annually submit to each feepayer a consolidated statement of fees required to be paid by the feepayer to the California Department of Tax and Fee Administration pursuant to Sections 25205.2, 25205.5, and 25205.6 of, or described in Section 25205.25 of, the Health and Safety Code.

(b) Notwithstanding any other law, any return or other document that is required to be submitted by a feepayer to the California Department of Tax and Fee Administration in connection with the payment of any fee specified in subdivision (a) shall instead be submitted together with the consolidated statement made pursuant to subdivision (a).

history: (History: Amended by Stats. 2024, Ch. 72, Sec. 49. (SB 156) Effective July 2, 2024.)

chapter: 3. Determinations

article: 1. Returns and Payments

path: 2. OTHER TAXES > 22. HAZARDOUS SUBSTANCES TAX LAW > 3. Determinations > 1. Returns and Payments


text:
(a) (1) (A) Except as provided in paragraph (2), the fee imposed pursuant to Section 25205.2 of the Health and Safety Code that is collected and administered under Section 43053 of this code is due and payable to the California Department of Tax and Fee Administration in two equal installments, on or before the last day of November and the last day of February of each fiscal year.

(B) Notwithstanding subparagraph (A), for the 2023–24 fiscal year only, the facility fee imposed pursuant to Section 25205.2 of the Health and Safety Code and collected and administered under Section 43053 of this code is due and payable to the California Department of Tax and Fee Administration in two equal installments, on or before November 30, 2023, and February 28, 2024.

(2) For the 2022–23 fiscal year, the fees imposed under subdivision (j) of Section 25205.2 of the Health and Safety Code collected and administered under Section 43053 are due and payable within 30 days after the date of assessment and every operator of a facility shall deliver a remittance of the amount of the assessed fee to the California Department of Tax and Fee Administration within that 30-day period.

(b) Every operator of a facility subject to the fee imposed pursuant to Section 25205.2 of the Health and Safety Code shall file a fiscal year return accompanying the second installment payment required pursuant to subdivision (a), in the form prescribed by the California Department of Tax and Fee Administration, and pay the proper amount of fee due. Returns shall be filed with the California Department of Tax and Fee Administration using electronic media and authenticated in a form or pursuant to methods as may be prescribed by the California Department of Tax and Fee Administration. This subdivision does not apply to an operator with respect to the operation of a facility subject to the fee imposed under subdivision (j) of Section 25205.2 of the Health and Safety Code for the 2022–23 fiscal year.

(c) For purposes of subdivision (a), the operator of a facility shall pay the applicable fee based on the type and size of the facility, as specified in Section 25205.2 of the Health and Safety Code.

(d) This section shall become operative on July 1, 2022, and applies to the fees due for the 2022–23 fiscal year and thereafter.

history: (History: Amended by Stats. 2024, Ch. 72, Sec. 50. (SB 156) Effective July 2, 2024.)

article: 1. Returns and Payments


text:
(a) (1) The generation and handling fee imposed pursuant to Sections 25205.5 and 25205.5.2 of the Health and Safety Code that is collected and administered under Section 43053 is due and payable in two equal installments, on or before the last day of November and the last day of February of each fiscal year.

(2) Notwithstanding subparagraph (1), for waste generated in the 2022 calendar year, the generation and handling fee imposed pursuant to Sections 25205.5 and 25205.5.2 of the Health and Safety Code that is collected and administered under Section 43053 of this code is due and payable to the California Department of Tax and Fee Administration in two equal installments, on or before November 30, 2023, and February 28, 2024.

(b) Every generator subject to the generation and handling fee imposed pursuant to Sections 25205.5 and 25205.5.2 of the Health and Safety Code shall file a fiscal year return, accompanying the second installment payment required pursuant to subdivision (a), in the form prescribed by the California Department of Tax and Fee Administration, and pay the proper amount of fee due. Returns shall be filed with the California Department of Tax and Fee Administration using electronic media and authenticated in a form or pursuant to methods as may be prescribed by the California Department of Tax and Fee Administration.

history: (History: Amended by Stats. 2024, Ch. 72, Sec. 51. (SB 156) Effective July 2, 2024.)

article: 1. Returns and Payments


text:
The department shall notify the California Department of Tax and Fee Administration of the occurrence of either of the following:

(a) The issuance of a hazardous waste facilities permit or grant of interim status to any facility operator, who has not previously been granted interim status, within 30 days after the facility permit or grant of interim status is issued.

(b) When any facility changes size or type specified in Section 25205.2 of the Health and Safety Code.

history: (History: Amended by Stats. 2021, Ch. 73, Sec. 98. (SB 158) Effective July 12, 2021.)

article: 1. Returns and Payments


text:
(a) The fee imposed pursuant to Section 25205.6 of the Health and Safety Code, which is collected and administered under Section 43054, is due and payable on the last day of the second month following the end of the calendar year.

(b) Every corporation, limited liability company, limited partnership, limited liability partnership, general partnership, and sole proprietorship subject to the fee imposed pursuant to Section 25205.6 of the Health and Safety Code shall file an annual return in the form as prescribed by the California Department of Tax and Fee Administration, and pay the proper amount of fee due. Returns shall be filed with the California Department of Tax and Fee Administration using electronic media and authenticated in a form or pursuant to methods as may be prescribed by the California Department of Tax and Fee Administration.

history: (History: Amended by Stats. 2021, Ch. 73, Sec. 99. (SB 158) Effective July 12, 2021.)

article: 1. Returns and Payments


text:
(a) The fee imposed pursuant to Section 105190 of the Health and Safety Code, which is collected and administered under Section 43056, is due and payable on the last day of the second month following the end of the calendar year.

(b) Every employer subject to the fee imposed pursuant to Section 105190 of the Health and Safety Code shall in the form as prescribed by the board, which may include, but not be limited to, electronic media file an annual return and pay the proper amount of fee due. Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the board.

history: (History: Amended by Stats. 2002, Ch. 459, Sec. 25. Effective January 1, 2003.)

article: 1. Returns and Payments


text: The fee imposed pursuant to Section 105310 of the Health and Safety Code, that is collected and administered under Section 43057, is due and payable on or before April 1 of each year for the previous calendar year.

history: (History: Amended by Stats. 2004, Ch. 527, Sec. 5. Effective January 1, 2005.)

article: 1. Returns and Payments


text:
(a) Except as provided in subdivision (b), the board for good cause may extend, for a period of time not to exceed one month, the time for making any return or paying any amount required to be paid under this part. The extension may be granted at any time provided a request therefor is filed with the board within or prior to the period for which the extension may be granted.

(b) (1) In the case of a disaster, the board, for a period not to exceed three months, may extend the time for making any report or return or paying any tax required under this part. The extension may be granted at any time provided a request therefor is filed with the board within or before the period for which the extension may be granted.

(2) For purposes of this section, “disaster” means fire, flood, storm, tidal wave, earthquake, or similar public calamity, whether or not resulting from natural causes.

(c) Any person to whom an extension is granted shall pay, in addition to the tax, interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date on which the tax would have been due without the extension until the date of payment.

history: (History: Amended by Stats. 2016, Ch. 257, Sec. 9. (AB 1559) Effective September 9, 2016.)

article: 1. Returns and Payments


text:
(a) Subject to subdivision (c), if the Governor issues a state of emergency proclamation, the California Department of Tax and Fee Administration may extend the time, for a period not to exceed three months, for making any report or return or paying any tax required under this part for any person in an area identified in the state of emergency proclamation.

(b) If the California Department of Tax and Fee Administration makes an extension pursuant to subdivision (a), any person in an area identified in a state of emergency proclamation shall not be required to file a request for the extension.

(c) The California Department of Tax and Fee Administration may make the extension in subdivision (a) only during the first 12 months following the issuance of the state of emergency proclamation or the duration of the state of emergency, whichever is less.

history: (History: Added by Stats. 2022, Ch. 474, Sec. 67. (SB 1496) Effective January 1, 2023.)

article: 1. Returns and Payments


text:
(a) Any person who fails to pay any tax, installment, or prepayment, except amounts of determinations made by the California Department of Tax and Fee Administration under Article 2 (commencing with Section 43201), within the time required shall pay a penalty of 10 percent of the tax, installment, or prepayment, plus interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date on which the tax or the amount of tax required to be collected became due and payable to the state until the date of payment.

(b) Any person who fails to file a return with the California Department of Tax and Fee Administration in accordance with this part within the time prescribed for the filing of a return shall pay a penalty of 10 percent of the amount of tax, exclusive of previously remitted installments.

(c) The penalties imposed by this section shall be limited to a maximum of 10 percent of the taxes for which the return, installment, or prepayment is required for any one return, installment, or prepayment.

(d) This section does not apply to a return or payment that becomes due on or after November 30, 2024, for any fee imposed pursuant to Section 25205.5 or former Section 25205.5.2 of the Health and Safety Code.

history: (History: Amended by Stats. 2026, Ch. 62, Sec. 9. (SB 166) Effective July 6, 2026.)

article: 1. Returns and Payments


text:
(a) (1) A person who fails to pay any generation and handling fee or installment required pursuant to Section 43152.7, except amounts of determinations made by the California Department of Tax and Fee Administration under Article 2 (commencing with Section 43201), within the time required shall pay a penalty, plus interest at the modified adjusted rate per month, or fraction of a month, established pursuant to Section 6591.5, from the date on which the fee or the amount of fee required to be collected became due and payable to the state until the date of payment, as follows:

(A) For a delinquency period of 30 days or fewer from the date the installment or fee became due and payable, the penalty shall be 10 percent of the amount of the delinquent fee or installment not timely remitted.

(B) For a delinquency period of at least 31 days, but not more than 60 days, from the date the installment or fee became due and payable, the penalty shall be 25 percent of the amount of the delinquent fee or installment not timely remitted.

(C) For a delinquency period of at least 61 days, but not more than 90 days, from the date the installment or fee became due and payable, the penalty shall be 50 percent of the amount of the delinquent fee or installment not timely remitted.

(D) For a delinquency period of 91 days or more from the date the installment or fee became due and payable, the penalty shall be 100 percent of the amount of the delinquent fee or installment not timely remitted.

(2) The penalty imposed by this subdivision shall apply to every delinquent fee or installment.

(b) A person who fails to file a generation and handling fee return required pursuant to Section 43152.7 shall pay a penalty based upon the length of the delinquency, as follows:

(1) For a delinquency period of 30 days or fewer from the date the return became due, the penalty shall be 10 percent of the amount of the fee, exclusive of previously remitted installments.

(2) For a delinquency period of at least 31 days, but not more than 60 days, from the date the return became due, the penalty shall be 25 percent of the amount of the fee, exclusive of previously remitted installments.

(3) For a delinquency period of at least 61 days, but not more than 90 days, from the date the return became due, the penalty shall be 50 percent of the amount of the fee, exclusive of previously remitted installments.

(4) For a delinquency period of 91 days or more from the date the return became due, the penalty shall be 100 percent of the amount of the fee, exclusive of previously remitted installments.

(c) The sum of the penalties imposed pursuant to subdivisions (a) and (b) shall not exceed 100 percent of the total fee required pursuant to Section 25205.5 or former Section 25205.5.2 of the Health and Safety Code.

(d) Notwithstanding any other limitation to the penalty amount imposed for any one installment, fee, or return specified in this part, the penalties imposed pursuant to this section shall be in addition to any other penalties imposed under this part.

(e) This section shall only apply to a return or payment that becomes due on or after November 30, 2024, for any fee imposed pursuant to Section 25205.5 or former Section 25205.5.2 of the Health and Safety Code.

history: (History: Amended by Stats. 2026, Ch. 62, Sec. 10. (SB 166) Effective July 6, 2026.)

article: 1. Returns and Payments


text:
(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 the 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, “department” means the California Department of Tax and Fee Administration.

(d) For purposes of this section, “business day” means any day other than a Saturday, Sunday, or any day designated as a state holiday.

(e) This section shall not apply to any payment made pursuant to a deficiency determination, a determination where no report or return has been filed, or a jeopardy determination issued by the department.

(f) This section shall only apply to electronic payments or prepayments of taxes.

history: (History: Amended by Stats. 2021, Ch. 432, Sec. 153. (SB 824) Effective January 1, 2022.)

article: 1. Returns and Payments


text:
(a) If the California Department of Tax and Fee Administration finds that a person’s failure to make a timely return, installment, prepayment, or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the penalty provided by Sections 43155, 43155.01, 43170, and 43306.

(b) Except as provided in subdivisions (c) and (d), any person seeking to be relieved of the penalty shall file with the California Department of Tax and Fee Administration a statement, under penalty of perjury, setting forth the facts upon which the person bases the claim for relief.

(c) (1) Subject to paragraph (2), the California Department of Tax and Fee Administration may grant relief of the penalty for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).

(2) The California Department of Tax and Fee Administration may grant the relief in paragraph (1) only during the first 12 months following the issuance of the state of emergency proclamation or the duration of the state of emergency, whichever is less.

(d) The California Department of Tax and Fee Administration shall establish criteria that provide for efficient resolution of requests for relief pursuant to this section.

history: (History: Amended by Stats. 2024, Ch. 72, Sec. 54. (SB 156) Effective July 2, 2024.)

article: 1. Returns and Payments


text:
(a) If the California Department of Tax and Fee Administration finds that a person’s failure to make a timely return or payment was due to disaster, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of interest provided for by Sections 43154, 43155, 43155.01, 43170, 43201, and 43201.01.

(b) Except as provided in subdivision (c), a person seeking to be relieved of interest shall file with the California Department of Tax and Fee Administration a statement under penalty of perjury setting forth the facts upon which the person bases the claim for relief.

(c) (1) Subject to paragraph (2), the California Department of Tax and Fee Administration may grant relief of the interest for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).

(2) The California Department of Tax and Fee Administration may grant the relief in paragraph (1) only during the first 12 months following the issuance of the state of emergency proclamation or the duration of the state of emergency, whichever is less.

history: (History: Amended by Stats. 2024, Ch. 72, Sec. 55. (SB 156) Effective July 2, 2024.)

article: 1. Returns and Payments


text:
(a) The board, in its discretion, may relieve all or any part of the interest imposed on a person by this part where the failure to pay fees is due in whole or in part to an unreasonable error or delay by an employee of the board acting in his or her official capacity.

(b) For purposes of this section, an error or delay shall be deemed to have occurred only if no significant aspect of the error or delay is attributable to an act of, or a failure to act by, the taxpayer.

(c) Any person seeking relief under this section shall file with the board a statement under penalty of perjury setting forth the facts on which the claim for relief is based and any other information which the board may require.

(d) The board may grant relief only for interest imposed on tax liabilities that arise during taxable periods commencing on or after January 1, 2000.

history: (History: Amended by Stats. 2001, Ch. 251, Sec. 31. Effective January 1, 2002.)

article: 1. Returns and Payments


text:
(a) If the board finds that a person’s failure to make a timely return or payment is due to the person’s reasonable reliance on written advice from the board, the person may be relieved of the taxes imposed or administered under this part and any penalty or interest added thereto.

(b) For purposes of this section, a person’s failure to make a timely return or payment shall be considered to be due to reasonable reliance on written advice from the board, only if the board finds that all of the following conditions are satisfied:

(1) The person requested in writing that the board advise him or her whether a particular activity or transaction is subject to tax under this part. The specific facts and circumstances of the activity or transaction shall be fully described in the request.

(2) The board responded in writing to the person regarding the written request for advice, stating whether or not the described activity or transaction is subject to tax, or stating the conditions under which the activity or transaction is subject to tax.

(3) The liability for taxes applied to a particular activity or transaction which occurred before either of the following:

(A) Before the board rescinded or modified the advice so given, by sending written notice to the person of rescinded or modified advice.

(B) Before a change in statutory or constitutional law, a change in the board’s regulations, or a final decision of a court, which renders the board’s earlier written advice no longer valid.

(c) Any person seeking relief under this section shall file with the board all of the following:

(1) A copy of the person’s written request to the board and a copy of the board’s written advice.

(2) A statement under penalty of perjury setting forth the facts on which the claim for relief is based.

(3) Any other information which the board may require.

(d) Only the person making the written request shall be entitled to rely on the board’s written advice to that person.

history: (History: Added by Stats. 1990, Ch. 987, Sec. 9.)

article: 1. Returns and Payments


text:
(a) Under regulations prescribed by the board, except for a fee imposed pursuant to Section 105310 of the Health and Safety Code, if: (1) A tax liability under this part was understated by a failure to file a return required to be filed under this part, by the omission of an amount properly includable therein, or by erroneous deductions or credits claimed on a return, and the understatement of tax liability is attributable to one spouse; or any amount of the tax reported on a return was unpaid and the nonpayment of the reported tax liability is attributable to one spouse. (2) The other spouse establishes that he or she did not know of, and had no reason to know of, that understatement or nonpayment. (3) Taking into account whether or not the other spouse significantly benefited directly or indirectly from the understatement or the nonpayment and taking into account all other facts and circumstances, it is inequitable to hold the other spouse liable for the deficiency in tax attributable to that understatement or nonpayment,then the other spouse shall be relieved of liability for tax (including interest, penalties, and other amounts) to the extent that the liability is attributable to that understatement or nonpayment of tax.

(b) For purposes of this section, the determination of the spouse to whom items of understatement or nonpayment are attributable shall be made without regard to community property laws.

(c) This section shall apply to all calendar months or years subject to the provisions of this part, but shall not apply to any calendar month or year that is more than five years from the final date on the board-issued determination, five years from the return due date for nonpayment on a return, or one year from the first contact with the spouse making a claim under this section; or that has been closed by res judicata, whichever is later.

(d) For purposes of paragraph (2) of subdivision (a), “reason to know” means whether or not a reasonably prudent person would have had reason to know of the understatement or nonpayment.

(e) For purposes of this section, with respect to a failure to file a return or an omission of an item from the return, “attributable to one spouse” may be determined by whether a spouse rendered substantial service as a taxpayer with respect to the taxes administered under this part to which the understatement is attributable. If neither spouse rendered substantial services as a taxpayer, then the attribution of applicable items of understatement shall be treated as community property. An erroneous deduction or credit shall be attributable to the spouse who caused that deduction or credit to be entered on the return.

(f) Under procedures prescribed by the board, if, taking into account all the facts and circumstances, it is inequitable to hold the other spouse liable for any unpaid tax or any deficiency (or any portion of either) attributable to any item for which relief is not available under subdivision (a), the board may relieve the other spouse of that liability.

(g) For purposes of this section, registered domestic partners, as defined in Section 297 of the Family Code, have the same rights, protections, and benefits as provided by this section, and are subject to the same responsibilities, obligations, and duties as imposed by this section, as are granted to and imposed upon spouses.

(h) The relief provided by this section shall apply retroactively to liabilities arising prior to the effective date of this section.

history: (History: Added by Stats. 2007, Ch. 342, Sec. 50. Effective January 1, 2008. Section applicable retroactively as prescribed in subd. (h) and clarified in Sec. 60 of Ch. 342.)

article: 1. Returns and Payments


text:
(a) Under regulations prescribed by the board, with respect to a fee imposed pursuant to Section 105310 of the Health and Safety Code, if: (1) A fee liability due on a notice of determination or other billing document for collection of the fee under this part was unpaid and the nonpayment of the fee liability is attributable to one spouse. (2) The other spouse establishes that he or she did not know of, and had no reason to know of, that nonpayment. (3) Taking into account whether or not the other spouse significantly benefited directly or indirectly from the nonpayment and taking into account all other facts and circumstances, it is inequitable to hold the other spouse liable for the deficiency in the fee attributable to that nonpayment,then the other spouse shall be relieved of liability for the fee (including interest, penalties, and other amounts) to the extent that the liability is attributable to that nonpayment of the fee.

(b) For purposes of this section, the determination of the spouse to whom items of nonpayment are attributable shall be made without regard to community property laws.

(c) This section shall apply to all calendar years subject to the provisions of this part, but shall not apply to any calendar year that is more than five years from the final date on the board-issued determination or other similar billing document for collection of the fee, five years from the due date for payment on the billing, or one year from the first contact with the spouse making a claim under this section; or that has been closed by res judicata, whichever is later.

(d) For purposes of paragraph (2) of subdivision (a), “reason to know” means whether or not a reasonably prudent person would have had reason to know of the understatement or nonpayment.

(e) For purposes of this section, with respect to a failure to pay a notice of determination or similar billing document for collection of the fee, “attributable to one spouse” may be determined by whether a spouse rendered substantial service as a feepayer with respect to a fee imposed under Section 105310 of the Health and Safety Code to which the nonpayment is attributable. If neither spouse rendered substantial services as a feepayer, then the attribution of the nonpayment shall be treated as community property.

(f) Under procedures prescribed by the board, if, taking into account all the facts and circumstances, it is inequitable to hold the other spouse liable for any unpaid fee or any deficiency (or any portion of either) attributable to any item for which relief is not available under subdivision (a), the board may relieve the other spouse of that liability.

(g) For purposes of this section, registered domestic partners, as defined in Section 297 of the Family Code, have the same rights, protections, and benefits as provided by this section, and are subject to the same responsibilities, obligations, and duties as imposed by this section, as are granted to and imposed upon spouses.

(h) The relief provided by this section shall apply retroactively to liabilities arising prior to the effective date of this section.

history: (History: Added by Stats. 2007, Ch. 342, Sec. 51. Effective January 1, 2008. Section applicable retroactively as prescribed in subd. (h) and clarified in Sec. 60 of Ch. 342.)

article: 1. Returns and Payments


text: Every person who is required to file the returns and make the payments specified in Section 43152.13 shall, upon transfer or discontinuance of operations, file closing returns on forms prescribed by the California Department of Tax and Fee Administration. The closing returns shall be due and payable on the last day of the month following the end of the quarterly period in which the transfer or discontinuance takes place.

history: (History: Amended by Stats. 2023, Ch. 511, Sec. 26. (SB 889) Effective January 1, 2024.)

article: 1. Returns and Payments


text:
(a) Any person whose estimated tax liability under this part averages twenty thousand dollars ($20,000) or more per month, as determined by the California Department of Tax and Fee Administration pursuant to methods of calculation prescribed by the California Department of Tax and Fee Administration, shall remit amounts due by an electronic funds transfer under procedures prescribed by the California Department of Tax and Fee Administration.

(b) Any person whose estimated tax liability under this part averages less than twenty thousand dollars ($20,000) per month may elect to remit amounts due by electronic funds transfer with the approval of the California Department of Tax and Fee Administration.

(c) Any person remitting amounts due pursuant to subdivision (a) or (b) shall perform electronic funds transfer in compliance with the due dates set forth in Article 1 (commencing with Section 43151). Payment is deemed complete on the date the electronic funds transfer is initiated if settlement to the state’s demand account occurs on or before the banking day following the date the transfer is initiated. If settlement to the state’s demand account does not occur on or before the banking day following the date the transfer is initiated, payment is deemed to occur on the date settlement occurs.

(d) Any person remitting taxes by electronic funds transfer shall, on or before the due date of the remittance, file a return for the preceding reporting period in the form and manner prescribed by the California Department of Tax and Fee Administration. Any person who fails to timely file the required return shall pay a penalty of 10 percent of the amount of taxes, exclusive of previously remitted installments, with respect to the period for which the return is required.

(e) Any person required to remit taxes pursuant to this article who remits those taxes by means other than appropriate electronic funds transfer shall pay a penalty of 10 percent of the taxes incorrectly remitted.

(f) Any person who fails to pay any tax to the state or any amount of tax, installment, or prepayment required to be collected and paid to the state, except amounts of determinations made by the California Department of Tax and Fee Administration under Article 2 (commencing with Section 43201), within the time required shall pay a penalty of 10 percent of the tax or amount of tax, in addition to the tax or amount of tax, plus interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date on which the tax or amount of tax required to be collected became due and payable to the state until the date of payment.

(g) In determining whether a person’s estimated tax liability averages twenty thousand dollars ($20,000) or more per month, the California Department of Tax and Fee Administration may consider tax returns filed pursuant to this part and any other information in the California Department of Tax and Fee Administration’s possession.

(h) (1) The penalties imposed by subdivisions (d), (e), and (f) shall be limited to a maximum of 10 percent of the taxes due for any one return, installment, or prepayment. Any person remitting taxes by electronic funds transfer shall be subject to the penalties under this section and not Section 43155.

(2) Notwithstanding paragraph (1), any person remitting fees imposed pursuant to Section 25205.5 or former Section 25205.5.2 of the Health and Safety Code by electronic funds transfer is subject to the penalties imposed by this section and the penalties imposed by Section 43155.01.

(i) The California Department of Tax and Fee Administration shall promulgate regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code for purposes of implementing this section.

history: (History: Amended by Stats. 2026, Ch. 62, Sec. 11. (SB 166) Effective July 6, 2026.)

path: 2. OTHER TAXES > 22. HAZARDOUS SUBSTANCES TAX LAW > 3. Determinations > 1.1. Payment by Electronic Funds Transfer


text: If the board finds that a person’s failure to make payment by an appropriate electronic funds transfer in accordance with board procedures is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, that person shall be relieved of the penalty provided in subdivision (e) of Section 43170. Any person seeking to be relieved of the penalty shall file with the board a statement under penalty of perjury setting forth the facts upon which he or she bases his or her claim for relief.

history: (History: Added by Stats. 2000, Ch. 923, Sec. 45. Effective January 1, 2001.)

article: 1.1. Payment by Electronic Funds Transfer


text:
(a) “Electronic funds transfer” means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape, so as to order, instruct, or authorize a financial institution to debit or credit an account. Electronic funds transfers shall be accomplished by an automated clearinghouse debit, an automated clearinghouse credit, or by Federal Reserve Wire Transfer (Fedwire).

(b) “Automated clearinghouse” means any federal reserve bank, or an organization established in agreement with the National Automated Clearing House Association, that operates as a clearinghouse for transmitting or receiving entries between banks or bank accounts and which authorizes an electronic transfer of funds between these banks or bank accounts.

(c) “Automated clearinghouse debit” means a transaction in which the state, through its designated depository bank, originates an automated clearinghouse transaction debiting the person’s bank account and crediting the state’s bank account for the amount of tax. Banking costs incurred for the automated clearinghouse debit transaction shall be paid by the state.

(d) “Automated clearinghouse credit” means an automated clearinghouse transaction in which the person through his or her own bank, originates an entry crediting the state’s bank account and debiting his or her own bank account. Banking costs incurred for the automated clearinghouse credit transaction charged to the state shall be paid by the person originating the credit.

(e) “Fedwire transfer” means any transaction originated by a person and utilizing the national electronic payment system to transfer funds through the federal reserve banks, when that person debits his or her own bank account and credits the state’s bank account. Electronic funds transfers pursuant to Section 43170 may be made by Fedwire only if payment cannot, for good cause, be made according to subdivision (a), and the use of Fedwire is preapproved by the board. Banking costs incurred for the Fedwire transaction charged to the person and to the state shall be paid by the person originating the transaction.


text:
(a) Any return, declaration, statement, or other document required to be made under this part that is filed using electronic media shall be filed and authenticated pursuant to any method or form the board may prescribe.

(b) Notwithstanding any other law, any return declaration, statement, or other document otherwise required to be signed that is filed by the taxpayer using electronic media in a form as required by the board shall be deemed to be a signed, valid original document, including upon reproduction to paper form by the board.

(c) Electronic media includes, but is not limited to, computer modem, magnetic media, optical disk, facsimile machine, or telephone.

history: (History: Added by Stats. 2002, Ch. 459, Sec. 27. Effective January 1, 2003.)


text:
(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.

(e) This section does not apply to a return or payment that becomes due on or after November 30, 2024, for any fee imposed pursuant to Section 25205.5 or former Section 25205.5.2 of the Health and Safety Code.

history: (History: Amended by Stats. 2026, Ch. 62, Sec. 12. (SB 166) Effective July 6, 2026.)

article: 2. Deficiency Determinations

path: 2. OTHER TAXES > 22. HAZARDOUS SUBSTANCES TAX LAW > 3. Determinations > 2. Deficiency Determinations


text:
(a) If the California Department of Tax and Fee Administration is dissatisfied with the return or report filed or the amount of fee paid to the state by any feepayer, or if no return or report has been filed or no payment or payments of the fees have been made to the state by a feepayer, 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 fee 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 fee. 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 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 in subdivision (a).

(c) If a feepayer willfully or knowingly provides incorrect information or withholds information that results in a deficient payment or nonpayment, as determined by California Department of Tax and Fee Administration based upon a preponderance of the evidence, a penalty of 300 percent of the amount of the determination shall be added.

(d) Notwithstanding any other limitation to the maximum penalty amount imposed for any one payment or return specified in this part, the penalties imposed pursuant to this section shall be in addition to any other penalties imposed under this part.

(e) The California Department of Tax and Fee Administration 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 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, 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.

(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 California Department of Tax and Fee Administration 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 California Department of Tax and Fee Administration electronically transmits the notice via the feepayer’s secure web portal, without extension of time for any reason.

(f) This section shall only apply to a return or payment that becomes due on or after November 30, 2024, for any fee imposed pursuant to Section 25205.5 or former Section 25205.5.2 of the Health and Safety Code.

history: (History: Amended by Stats. 2026, Ch. 62, Sec. 13. (SB 166) Effective July 6, 2026.)

article: 2. Deficiency Determinations