Assemblyman Tim Donnelly's AB 2048 passed out of the Assembly Revenue and Taxation Committee Monday with unanimous support!
This bill, sponsored by the California Board of Equalization (BOE), will ensure that government has to pay the same interest rate on tax overpayments as it requires of citizens for tax underpayments. Currently, citizens pay 7% interest, while the government pays 0% interest.
Following Committee, Assemblyman Donnelly released the following statement:
"AB 2048 moves us in the right direction to ensure government lives under its own rules. Government exists only by the consent of the governed, but for far too long it has required more of us than it is willing to do itself. With this measure we took a critical step toward remedying this disparity in the system.
"I am grateful to the Members of the Board of Equalization for their responsible fight on this issue. They have been critical partners in moving this bill forward."
From 1937 to 1991, the interest either party owed was calculated the same way. In 1991, however, the Legislature created the current bureaucratic inequity. Since that time the Board of Equalization has sponsored similar measures eleven times unsuccessfully.
This measure is supported by the Howard Jarvis Taxpayers Association and the California Taxpayers Association. It will be heard next in the Assembly Appropriations Committee.