Bill > SB421

This bill amends Section 6591.5 of the Revenue and Taxation Code to change how interest is calculated on underpayments and overpayments of California sales and use taxes. Specifically, it removes the provision that added three percentage points to the adjusted annual rate when calculating the "modified adjusted rate per annum" for underpayments, meaning the interest rate on taxes owed to the state will now be solely based on the adjusted annual rate. The bill also retains the existing methods for determining the monthly interest rate and how the annual rates are applied semiannually, as well as the calculation of interest on overpayments and the requirement for simple interest computation.