California Legislature—2013–14 Regular Session

Assembly Bill No. 672

Introduced by Assembly Member Harkey

February 21, 2013

An act to amend Section 19591 of, and to repeal Sections 17735, 19513, 19514, and 19515 of, the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 672, as introduced, Harkey. Tax administration: tax clearance certificates.

Existing law requires, for specified estates, a tax clearance certificate issued by the Franchise Tax Board certifying that all taxes have been paid or secured as required by law, before a probate court allows the final account of the fiduciary.

This bill would eliminate the tax clearance certificate requirement and related provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 17735 of the Revenue and Taxation Code
is repealed.

begin delete

17735.  

In the case of an estate, no deductions shall be allowed
under Section 661(a) of the Internal Revenue Code with respect
to amounts attributable and taxable to nonresident beneficiaries if
the fiduciary fails to obtain a certificate as provided by Section
19513.

end delete

SEC. 2.  

Section 19513 of the Revenue and Taxation Code is
repealed.

begin delete

19513.  

(a) If assets of an estate are distributable to one or more
nonresident beneficiaries, the final account of the fiduciary shall
not be allowed by the probate court unless the fiduciary obtains
from the Franchise Tax Board and files with the court a certificate
to the effect that all taxes, additions to tax, penalties, and interest
imposed by Part 10 (commencing with Section 17001) or this part
upon the estate or decedent which have become payable have been
paid, and that all taxes, additions to tax, penalties, and interest
which may become due are secured by bond, deposit or otherwise.

(b) This section only applies if the value of the assets of the
estate at the death of the decedent and the value of the assets
distributable to one or more nonresidents exceed amounts
prescribed by regulations promulgated by the Franchise Tax Board.

end delete

SEC. 3.  

Section 19514 of the Revenue and Taxation Code is
repealed.

begin delete

19514.  

Within 30 days after receiving a request for a certificate,
the Franchise Tax Board shall either issue the certificate or notify
the person requesting the certificate of the amount that shall be
paid or the amount of bond, deposit, or other security that shall be
furnished as a condition of issuance of the certificate.

end delete

SEC. 4.  

Section 19515 of the Revenue and Taxation Code is
repealed.

begin delete

19515.  

The certificate of the Franchise Tax Board does not
relieve the estate for which the fiduciary acts of liability for any
amounts which are due and unpaid at the time the certificate is
issued or which may become due from the decedent or estate after
the issuance of the certificate. It also does not relieve the fiduciary
of the liability imposed by Section 19516.

end delete

SEC. 5.  

Section 19591 of the Revenue and Taxation Code is
amended to read:

19591.  

(a) Specialized tax services fees shall be imposed upon
the following services provided by the board:

(1) Installment payment programs.

(2) Expedited services for:

(A) Corporation revivor requests.

begin delete

(B) Tax clearance certificate requests.

end delete begin delete

(C)

end delete

begin insert (B) end insert  Tax-exempt status requests.

begin delete

(D)

end delete

begin insert (C) end insert  Limited partnership revival confirmation letter requests.

(b) (1) For periods on or after the effective date of this section
and prior to January 1, 2006, the Franchise Tax Board shall publish
by notice a schedule of specialized tax services fees to be imposed,
which notice shall be exempt from the requirements of Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of
Title 2 of the Government Code. The amounts of these fees under
this paragraph shall be calculated in the same general manner as
required under paragraph (2).

(2) Commencing on January 1, 2006, the amount of the
specialized tax services fees shall be established by the board
through regulations adopted pursuant to Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, and shall be established in the manner and in
the amounts necessary to reimburse the board for the costs of
administering the specialized services, including the board’s direct
and indirect costs for providing specialized tax services.

(3) For periods on or after the effective date of this section, and
prior to January 1, 2011, the amount of the specialized tax service
fee for limited partnership revival confirmation letter requests shall
be one hundred dollars ($100). Commencing on January 1, 2011,
the specialized tax service fee for limited partnership revival
confirmation letter requests shall be calculated in the same general
manner as required under paragraph (2).