Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Tax on Insurers Law

Chapter 7. Cancellations and Refunds*

Article 2. Refund or Credit for Collected Taxes²

Section 12983

Text of section operative through June 30, 2012

12983. Interest; insurers. (a) Interest shall be allowed upon the amount of any overpayment of tax by an insurer or Medi-Cal managed care plan pursuant to this part at the modified adjusted rate per month established pursuant to Section 6591.5, from the first day of the monthly period following the period during which the overpayment was made. For purposes of this section, "monthly period" means the month commencing on the day after the due date of the payment through the same date as the due date in each successive month. In addition, a refund or credit shall be made of any interest imposed upon the claimant with respect to the amount being refunded or credited.

The interest shall be paid as follows:

(1) In the case of a refund, to the last day of the calendar month following the date upon which the claimant is notified in writing that a claim may be filed or the date upon which the claim is approved by the board, whichever date is the earlier.

(2) In the case of a credit, to the same date as that to which interest is computed on the tax or amount against which the credit is applied.

(b) This section shall become inoperative on July 1, 2012, and, as of January 1, 2013, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.

History.—Added by Stats. 1959, p. 1894, in effect April 1, 1959. Stats. 1961, p. 1991, operative January 1, 1962, substituted the language beginning with "due date" for "date of the overpayment to the date on which the credit is used but not later than April 1st following the date of approval." Stats. 1975, Ch. 661, operative to interest accruing on or after January 1, 1976, substituted "12 percent" for "6 percent." Stats. 1982, Ch. 5, First Extra Session in effect May 27, 1982, substituted "adjusted . . . 19269" for "rate . . . annum" before "from" in the first sentence. Stats. 1984, Ch. 1020, operative July 1, 1985, adds "modified" before "adjusted", deletes "annual" before "rate", adds "per annum" before "established" and substitutes "Section 6591.5" for "Section 19269" in the first line. Stats. 1992, Ch. 1336, in effect January 1, 1993, substituted "monthly" for "annum" after "adjusted rate per", substituted "first day of. . . . In addition, a" for "due date of the tax for the year for which the overpayment was made, but no" after "from the", and added "as follows" after "shall be paid" in the first sentence. Stats. 1995, Ch. 721, in effect January 1, 1996, added "by an insurer" after "overpayment of tax" in the first sentence of the first paragraph and made "The interest shall be paid as follows:" the second paragraph. Stats. 2009, Ch. 157 (AB 1422), in effect September 22, 2009, designated the first two paragraphs as subdivision (a), added "or Medi-Cal managed care plan" after "overpayment of tax by an insurer" in the first sentence and redesignated former subdivisions (a) and (b) as paragraphs (1) and (2), respectively, in subdivision (a); and added subdivision (b). Stats. 2010, Ch. 717 (SB 853), in effect October 19, 2010, deleted former subdivision (d) which provided that "This section shall remain in effect only until January 1, 2011, and as of that date is repealed." and added the new subdivision (b). Stats. 2011, Ch. 11x1 (ABx1 21), in effect September 16, 2011, substituted "2012" for "2011" after "inoperative on July 1,", substituted "2013" for "2012" after "as of January 1,", substituted "July" for "January" after "operative on or before" in subdivision (b).

Text of section operative July 1, 2012

12983. Interest; insurers. (a) Interest shall be allowed upon the amount of any overpayment of tax by an insurer pursuant to this part at the modified adjusted rate per month established pursuant to Section 6591.5, from the first day of the monthly period following the period during which the overpayment was made. For purposes of this section, "monthly period" means the month commencing on the day after the due date of the payment through the same date as the due date in each successive month. In addition, a refund or credit shall be made of any interest imposed upon the claimant with respect to the amount being refunded or credited.

The interest shall be paid as follows:

(1) In the case of a refund, to the last day of the calendar month following the date upon which the claimant is notified in writing that a claim may be filed or the date upon which the claim is approved by the board, whichever date is the earlier.

(2) In the case of a credit, to the same date as that to which interest is computed on the tax or amount against which the credit is applied.

(b) This section shall become operative on July 1, 2012.

History.—Added by Stats. 2009, Ch. 157 (AB 1422), in effect September 22, 2009, but operative January 1, 2011. Stats. 2010, Ch. 717 (SB 853), in effect October 19, 2010, substituted "July 1, 2011" for "January 1, 2011" after "operative on" in subdivision (b). Stats. 2011, Ch. 11x1 (ABx1 21), in effect September 16, 2011, substituted "2012" for "2011" after "operative on July 1," in subdivision (b).

* 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".