Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2010
 

Tax on Insurers Law

Chapter 5. Payment and Collection.

Article 2. Interest and Penalties*

Section 12632

12632. Deficiency assessment; interest and penalty. (a) An insurer deletionor Medi-Cal managed care plan that fails to pay any deficiency assessment when it becomes due and payable shall, in addition to the deficiency assessment, pay a penalty of 10 percent of the amount of the deficiency assessment, exclusive of interest and penalties. The amount of any deficiency assessment, exclusive of penalties, shall bear interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date on which the amount, or any portion thereof, would have been payable if properly reported and assessed 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(b) This section shall remain in effect only until January 1, 2011, and as of that date is repealed.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 date on which" for "June 15th of the year in which". Stats. 1975, Ch. 661, operative to interest accruing on or after January 1, 1976, substituted "1 percent" for "one-half of 1 percent." Stats. 1982, Ch. 5, First Extra Session, in effect May 27, 1982, substituted "adjusted . . . 19269" for "rate . . . thereof" before "from" in the second sentence. 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 paragraph as subdivision (a), added "or Medi-Cal managed care plan" after "An insurer", and substituted "that" for "who" before "fails to pay any deficiency assessment" in subdivision (a); and added subdivision (b).

Text of section operative January 1, 2011

12632. Deficiency assessment; interest and penalty. (a) An insurer that fails to pay any deficiency assessment when it becomes due and payable shall, in addition to the deficiency assessment, pay a penalty of 10 percent of the amount of the deficiency assessment, exclusive of interest and penalties. The amount of any deficiency assessment, exclusive of penalties, shall bear interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date on which the amount, or any portion thereof, would have been payable if properly reported and assessed 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.