REFUNDS OF INCOME - 8240

(Revised: 10/2020)

When payments collected and deposited by an agency/department are subsequently determined to be erroneous or excessive, the agency/department may refund the overpayment.

 

Issuing a Refund

 

Government Code sections 13140-13144 permits refunds of erroneous amounts for any fee or excess payment. Refunds shall be made from one of the following:

1. Any unremitted balance of receipts of the same nature in the agency’s/department’s checking account or
2. The revenue account in the fund where the original receipt was credited. Individual refund claims in excess of $10,000 which will be submitted to the State Controller’s Office (SCO) for payment must be approved in advance by the Finance Budget Analyst and the SCO prior to submission.

Refund Claims

 

Refund claims typically occur when the public has either overpaid for licenses, fees, or services or does not qualify to receive a service. These funds must be returned to the payer. Refunds of amounts that were remitted in a previous fiscal year or as prior year revenue will be filed against the prior year revenue account. Refunds of amounts that were remitted in the current fiscal year as current year revenue will be filed against the current year.