Salt Report 3596 – Currently, 22 states pay a lower percentage of interest to taxpayers who overpay and are due refunds than they pay to taxpayers who underpay and are assessed. This bill is attempting to establish one interest rate for both underpayments and overpayments in CA.
On Wednesday, March 25, 2015 at the monthly BOE meeting during the Legislative Committee hearings the BOE will be addressing the following bill:
On February 19, 2015 CA Assembly Member Brough introduced Assembly Bill 405. The bill is structured to eliminate the disparity between overpayment interest rates and underpayment interest rates. Presently, (and historically at varying rates defined by CRTC Section 6591.5) if a taxpayer owes money to the BOE (underpayment) the interest rate paid to the BOE is 6%. If a taxpayer is owed money by the BOE (overpayment) the interest rate paid by the BOE is 0%.