BILL NUMBER: AB 672	INTRODUCED
	BILL TEXT


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repealed. 
   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.

  SEC. 2.  Section 19513 of the Revenue and Taxation Code is
repealed. 
   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. 
  SEC. 3.  Section 19514 of the Revenue and Taxation Code is
repealed. 
   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. 
  SEC. 4.  Section 19515 of the Revenue and Taxation Code is
repealed. 
   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. 
  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. 
   (B) Tax clearance certificate requests.  
   (C) 
    (B)  Tax-exempt status requests. 
   (D) 
    (C)  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).