Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2010
 

Tax on Insurers Law

Chapter 7. Cancellations and Refunds*

Article 2. Refund or Credit for Collected Taxes²

Section 12984

12984. Disallowance of interest. (a) If the board determines that any overpayment has been made intentionally or made not incident to a bona fide and orderly discharge of a liability reasonably assumed by the insurer,deletion surplus line broker, or Medi-Cal managed care plan to be imposed by law, no interest shall be allowed on the overpayment.

(b) If any insurer,deletion surplus line broker, or Medi-Cal managed care plan which has filed a claim for refund requests the board to defer action on its claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the insurer,deletion surplus line broker, or Medi-Cal managed care plan requests the board to defer action on the claim.

(c) This section shall remain in effect only until January 1, 2011, and as of that date is repealed.

History.—Added by Stats. 1961, p. 1992, operative January 1, 1962. Stats. 1978, Ch. 827, effective January 1, 1979, lettered existing first paragraph as (a), and added new paragraph (b). Stats. 1995, Ch. 721, in effect January 1, 1996, added "or surplus line broker" after "by the insurer" in subdivision (a) and added "or surplus line broker" after "If any insurer" and after "which the insurer" in subdivision (b). Stats. 2009, Ch. 157 (AB 1422), in effect September 22, 2009, deleted "or" and added a comma before "surplus line broker" once in subdivision (a) and twice in subdivision (b), and added ", or Medi-Cal managed care plan" after "surplus line broker" once in subdivision (a) and twice in subdivision (b); and added subdivision (c).

Text of section operative January 1, 2011

12984. Disallowance of interest. (a) If the board determines that any overpayment has been made intentionally or made not incident to a bona fide and orderly discharge of a liability reasonably assumed by the insurer or surplus line broker to be imposed by law, no interest shall be allowed on the overpayment.

(b) If any insurer or surplus line broker which has filed a claim for refund requests the board to defer action on its claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the insurer or surplus line broker requests the board to defer action on the claim.

(c) 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.

* Stats. 1961, p. 1990, operative January 1, 1962, amended the title of Chapter 7 from "corrections" to "cancellations and refunds".

² Stats. 1961, p. 1990, operative January 1, 1962, amended the title of Article 2 from "Credit for Collected Taxes" to "Refund or Credit for Collected Taxes".