Rev. & Tax. Code, § 38451.5 · Article 6. Interest and Penalties
Rev. & Tax. Code, § 38451.5
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) If the department finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per month or fraction thereof, as defined in Section 6591.5, interest shall be computed at the modified adjusted daily rate from the date on which the tax was due until the date of payment, if all of the following occur:
(1) The payment of the tax was made one business day after the date the tax was due.
(2) The person was granted relief from all penalties that applied to that tax payment.
(3) The person files a request for an adjustment.
(b) For purposes of this section:
(1) “Business day” means any day other than a Saturday, Sunday, or any day designated as a state holiday.
(2) “Department” means the California Department of Tax and Fee Administration.
(3) “Modified adjusted daily rate” means the modified adjusted rate per annum as defined in subdivision (a) of Section 6591.5 determined on a daily basis by dividing the modified adjusted rate per annum by 365.
(c) This section shall not apply to any payment made pursuant to a deficiency determination, a determination if no return has been filed, or a jeopardy determination issued by the department.
(d) This section shall apply only to electronic payments of taxes.
Notes and commentary — not statutory text
History
Added by Stats. 2021, Ch. 432, Sec. 36. (SB 824) Effective January 1, 2022.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=38451.5.
- Text hash
- sha256 2bb2b3128ad0c14c672ccb1e24d088ad9d06315ed2ce8f5452ffbc58102fd11a
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Revenue and Taxation Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.