BILL NUMBER: AB 1556	CHAPTERED  08/11/03

	CHAPTER  221
	FILED WITH SECRETARY OF STATE  AUGUST 11, 2003
	APPROVED BY GOVERNOR  AUGUST 9, 2003
	PASSED THE SENATE  JULY 24, 2003
	PASSED THE ASSEMBLY  MAY 8, 2003

INTRODUCED BY   Assembly Member Nakano

                        FEBRUARY 21, 2003

   An act to add Sections 13551 and 13552 to the Revenue and Taxation
Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1556, Nakano.  Estate tax.
   Existing law prohibits the imposition of any tax on or by reason
of any transfer occurring by reason of death, but imposes a
California estate tax equal to a certain portion of the maximum
allowable amount of credit for state death taxes allowable under the
applicable federal estate tax law.  Existing law also specifies the
applicable interest payable on delinquent amounts or overpayments of
tax.
   The bill would provide that every payment of the tax shall first
be applied to any interest due, secondly, to penalties, and then to
the tax itself, as provided.  This bill would also provide that all
interest and penalties shall be treated and collected in the same
manner as taxes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 13551 is added to the Revenue and Taxation
Code, to read:
   13551.  Every payment on the tax imposed by this part is applied,
first, to any interest due on the tax, secondly, to any penalty
imposed by this part, and then, if there is any balance, to the tax
itself.
  SEC. 2.  Section 13552 is added to the Revenue and Taxation Code,
to read:
   13552.  All interest and penalties provided in this chapter shall
be treated and collected in the same manner as taxes.