Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2010
 

Tax on Insurers Law

Chapter 5. Payment and Collection.

Article 2. Interest and Penalties*

Section 12631

12631. Interest and penalty. (a) Any insurer deletionor Medi-Cal managed care plan that fails to pay any tax, except a tax determined as a deficiency assessment by the board under Article 3 (commencing with Section 12421) of Chapter 4, within the time required, shall pay a penalty of 10 percent of the amount of the tax in addition to the tax, plus interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the due date of the tax until the date of payment.

(b) This section shall remain in effect only until January 1, 2011, and as of that date is repealed.

History.—Added by Stats. 1961, p. 1988, operative January 1, 1962. Stats. 1969, p. 1476, in effect August 14, 1969, operative January 1, 1970, substituted "the due date of the tax" for "June 15th of the year in which the tax became due and payable". Stats. 1975, Ch. 661, operative to interest accuring on or after January 1, 1976, substituted "1 percent" for "one-half of 1 percent." Stats. 1982, Ch. 5, First Extra Sesssion, in effect May 27, 1982, added "(commencing with Section 12421)" after "Article 3" and substituted "adjusted . . . 19269" for "rate . . . thereof" before "from". Stats. 1982, Ch. 454, in effect January 1, 1983, deleted "of this part" after "Chapter 4" and substituted "rate of 1 percent per month, or fraction thereof," for "adjusted annual rate established pursuant to Section 19269" before "from". Stats. 1983, Ch. 142, in effect January 1, 1984, substituted "adjusted . . . 19269" for "rate of . . . thereof" before "from". Stats. 1984, Ch. 1020, operative July 1, 1985, added "modified" before "adjusted," deleted "annual" before "rate," added "per month, or fraction thereof", before "established" and substituted "Section 6591.5" for "Section 19269". Stats. 2009, Ch. 157 (AB 1422), in effect September 22, 2009, designated the first sentence as subdivision (a), added "or Medi-Cal managed care plan" after "Any insurer", and substituted "that" for "who" before "fails to pay any tax," in subdivision (a); and added subdivision (b).

Penalty.—The penalty imposed by former Section 3668b of the Political Code (similar to the penalty imposed by this section) cannot be avoided on the ground that the taxpayer mailed its remittance to the wrong address, with the result that it was not received until after the delinquency date. Camden Fire Insurance Association v. Johnson (1941) 42 Cal.App.2d 528.

Text of section operative January 1, 2011

12631. Interest and penalty. (a) Any insurer that fails to pay any tax, except a tax determined as a deficiency assessment by the board under Article 3 (commencing with Section 12421) of Chapter 4, within the time required, shall pay a penalty of 10 percent of the amount of the tax in addition to the tax, plus interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the due date of the tax until the date of payment.

(b) This section shall become operative on January 1, 2011.

History.—Added by Stats. 2009, Ch. 157 (AB 1422), in effect September 22, 2009, but operative January 1, 2011.

* Former Article 2, Suits for Taxes, was renumbered as Article 3 by Stats. 1961, p. 1988, operative January 1, 1962.