Senator Gaines' Taxpayer Protection Bill Passes Assembly

Thursday, August 24, 2017

SACRAMENTO – Senator Ted Gaines (R-El Dorado) today announced his Senate Bill 11, a measure that would proactively waive penalties and interest for taxpayers when a California Board of Equalization (BOE) or its successor agency’s system failure prevents them from making tax payments on time, passed unanimously out of the Assembly.

“California taxpayers shouldn’t be on the hook for penalties and interest because of a state website outage,” said Senator Gaines. “Senate Bill 11 is simple and fair, two elements of good governance that are too often missing in California. I look forward to the bill’s continued support as it heads to the Governor.”

Under existing law, tax payments made after the filing deadline are subject to interest and penalty. The BOE or its successor agency is currently authorized to waive any penalties or interest if the late payment is due to a disaster or agency error, however, it is the responsibility of the taxpayer to file paperwork and petition for a refund.

Senate Bill 11 comes on the heels of four separate BOE computer system failures over the past year, two of which occurred during peak filing deadlines leaving taxpayers unable to pay their tax bills on time.