BILL NUMBER: AB 672	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 11, 2013

INTRODUCED BY   Assembly Member Harkey

                        FEBRUARY 21, 2013

   An act to amend Section 19591 of,  to amend and repeal Section
17735 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 amended, 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.  Existing law
prohibits a deduction from being allowed for amounts attributable and
taxable to nonresident beneficiaries if the fiduciary fails to
obtain a tax clearance certificate, as specified. 
   This bill would eliminate the tax clearance certificate
requirement  related to the final account of the fiduciary 
and related provisions.  This bill would also eliminate the tax
clearance certificate requirement related to that deduction for
taxable years beginning on or after January 1, 2014. 
   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Taxation Code is repealed. 
   SECTION 1.    Section 17735 of the   Revenue
and Taxation Code   is amended to read: 
   17735.   (a)    In the case of an estate,
for taxable years beginning before January 1, 2014,  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 
 failed  to obtain a certificate as provided by  former
 Section 19513. 
   (b) This section shall remain in effect only until December 1,
2018, and as of that date is repealed. 
  SEC. 2.  Section 19513 of the Revenue and Taxation Code is
repealed.
  SEC. 3.  Section 19514 of the Revenue and Taxation Code is
repealed.
  SEC. 4.  Section 19515 of the Revenue and Taxation Code is
repealed.
  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-exempt status requests.
   (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).