No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against this State or against any officer of the State to prevent or enjoin the assessment or collection under this part of any tax or any amount of tax required to be collected.
Insurance TaxationTaxpayers’ Suits
Section § 13101
The law states that you cannot use any legal action, like an injunction, to stop the state or its officials from assessing or collecting taxes. In other words, the process of assessing or collecting taxes is not something you can legally block or delay.
tax assessment tax collection state officials
Section § 13102
If you believe you've been wrongly charged or taxed, you can't take legal action to get your money back until you've officially requested a refund or credit as outlined in the related rules.
No suit or proceeding shall be maintained in any court for the recovery of any amount alleged to have been erroneously or illegally assessed or collected unless a claim for refund or credit has been duly filed in accordance with Article 2 of Chapter 7 of this part.
refund claim erroneous assessment illegal collection
Section § 13103
If you've been denied a tax refund or credit by the board, you have 90 days from when you receive their decision to sue them in court to get your money back. You can file this lawsuit in any county or city in California where the Attorney General has an office. The Attorney General will represent the board in court.
Within 90 days after the mailing of the notice of the board’s action upon a claim for refund or credit, the claimant may bring an action against the board on the grounds set forth in the claim in a court of competent jurisdiction in any county or city and county in the State in which the Attorney General has an office for the recovery of the whole or any part of the amount with respect to which the claim has been disallowed. The Attorney General shall defend the action.
tax refund denial credit claim disallowed lawsuit against tax board
Section § 13104
If you file a claim for a refund or credit with the board and they don't send you a decision within six months, you can assume your claim is denied. In that case, you have the right to sue the board to recover the money you believe you overpaid, based on the reasons you stated in your claim.
If the board fails to mail notice of its action on a claim for refund or credit within six months after the claim is filed with the board, the claimant may, prior to mailing of notice by the board of its action on the claim, consider the claim disallowed and bring an action against the board on the grounds set forth in the claim for the recovery of the whole or any part of the amount claimed as an overpayment.
claim for refund overpayment recovery board's action
Section § 13105
If you do not file your lawsuit or claim against the State within the time limit given, you lose your right to demand any money back that you think was paid in excess.
Failure to bring a suit or an action within the time specified constitutes a waiver of all demands against the State on account of an alleged overpayment.
overpayment claims time limits waiver of demands
Section § 13106
If a person wins a lawsuit, the amount they win will first be used to pay off any taxes they owe. If there's any money left after paying the taxes, it will be given back to the person who won the case.
If judgment is rendered for the plaintiff, the amount of the judgment shall first be credited on any taxes due and payable from the plaintiff. The balance of the judgment shall be refunded to the plaintiff.
tax debt settlement plaintiff judgment refund balance
Section § 13107
This law explains how interest should be handled in a situation where money has been collected illegally. If a court decides that someone paid money they shouldn't have, that person will get interest on the amount from when they paid it until they get credit back for it. The interest rate used is set by another section (Section 6591.5). The date calculated for the refund will be set by the Controller and can't be more than 30 days before the refund check is issued.
In any judgment, interest shall be allowed, subject to the same limitations as are prescribed by Section 12984, at the modified adjusted rate per annum established pursuant to Section 6591.5, upon the amount found to have been illegally collected from the date of payment of the amount to the date of allowance of credit on account of the judgment or to a date preceding the date of the refund warrant by not more than 30 days, the date to be determined by the Controller.
interest on illegally collected funds judgment interest Section 12984 limitations
Section § 13108
If an insurer has paid taxes, interest, or penalties, only that insurer can file a lawsuit to recover those payments. An assignee or any other person cannot bring the lawsuit on behalf of the insurer to recover those amounts. This rule has been in effect since July 1, 2013.
(a)CA Revenue & Taxation Code § 13108(a) A judgment shall not be rendered in favor of the plaintiff when the action is brought by or in the name of an assignee of the insurer paying the tax, interest, or penalties, or by any person other than the insurer that has paid the tax, interest, or penalties.
(b)CA Revenue & Taxation Code § 13108(b) This section shall become operative on July 1, 2013.
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