California Legislature—2013–14 Regular Session

Assembly BillNo. 1222


Introduced by Assembly Member Bloom

February 22, 2013


An act to amend Sections 7094, 9272, 30459.2, 32472, 40212, 41172, 43523, 45868, 46623, 50156.12, 55333, and 60632 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 1222, as introduced, Bloom. Tax administration: Taxpayers’ Rights Advocate: levy or notice to withhold: return of funds.

Under the Sales and Use Tax Law, the Use Fuel Tax Law, the Alcoholic Beverage Tax Law, the Energy Resources Surcharge Law, the Emergency Telephone Users Surcharge Act, the Hazardous Substances Tax Law, the Integrated Waste Management Fee Law, the Oil Spill Response, Prevention, and Administration Fees Law, the Underground Storage Tank Maintenance Fee Law, and the Diesel Fuel Tax Law, the Taxpayers’ Rights Advocate is authorized to order, within 90 days of the receipt of funds pursuant to a levy or notice to withhold, the return of any amount not exceeding $1,500, upon a finding that the levy or notice to withhold threatens the health or welfare of the taxpayer, or his or her spouse and dependents or family.

This bill would increase the amount the Taxpayers’ Rights Advocate is authorized to order returned to $2,300, and would authorize this amount to be adjusted for inflation, as provided.

Under the Cigarette and Tobacco Products Law and the Fee Collection Procedures Law, the Taxpayers’ Rights Advocate is authorized to order the release of a levy or notice to withhold upon his or her finding that the levy or notice to withhold threatens the health or welfare of the taxpayer, or his or her spouse and dependents or family.

This bill would additionally authorize the Taxpayers’ Rights Advocate to order, within 90 days of the receipt of funds pursuant to a levy or notice to withhold, the return of any amount not exceeding $2,300, upon a finding that the levy or notice to withhold threatens the health or welfare of the taxpayer, or his or her spouse and dependents or family, and would authorize this amount to be adjusted for inflation, as provided.

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

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

P2    1

SECTION 1.  

Section 7094 of the Revenue and Taxation Code
2 is amended to read:

3

7094.  

(a) The board shall release any levy or notice to withhold
4issued pursuant to this part on any property in the event that the
5expense of the sale process exceeds the liability for which the levy
6is made.

7(b) begin insert(1)end insertbegin insertend insertThe Taxpayers’ Rights Advocate may order the release
8of any levy or notice to withhold issued pursuant to this part or,
9within 90 days from the receipt of funds pursuant to a levy or
10notice to withhold, order the return of any amount up tobegin delete oneend deletebegin insert twoend insert
11 thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of moneys
12received, upon his or her finding that the levy or notice to withhold
13threatens the health or welfare of the taxpayer or his or her spouse
14and dependents or family.

begin insert

15(2) The board shall adjust the
16two-thousand-three-hundred-dollar ($2,300) amount specified in
17paragraph (1) as follows:

end insert
begin insert

18(A) On or before March 1, 2014, and on or before March 1 each
19year thereafter, the board shall multiply the amount applicable
20for the current fiscal year by the inflation factor adjustment
21calculated based on the percentage change in the Consumer Price
22Index, as recorded by the California Department of Industrial
23Relations for the most recent year available, and the formula set
24forth in paragraph (2) of subdivision (h) of Section 17041. The
25resulting amount will be the applicable amount for the succeeding
26fiscal year only when the applicable amount computed is equal to
P3    1or exceeds a new operative threshold, as defined in subparagraph
2(C).

end insert
begin insert

3(B) When the applicable amount equals or exceeds an operative
4threshold specified in subparagraph (C), the resulting applicable
5amount, rounded to the nearest multiple of one hundred dollars
6($100), shall be operative for purposes of paragraph (1) beginning
7July 1 of the succeeding fiscal year.

end insert
begin insert

8(C) For purposes of this paragraph, “operative threshold”
9means an amount that exceeds by at least one hundred dollars
10($100) the greater of either the amount specified in paragraph (1)
11or the amount computed pursuant to subparagraphs (A) and (B)
12as the operative adjustment to the amount specified in paragraph
13(1).

end insert

14(c) The board shall not sell any seized property until it has first
15notified the taxpayer in writing of the exemptions from levy under
16Chapter 4 (commencing with Section 703.010) of Title 9 of the
17Code of Civil Procedure.

18(d) This section shall not apply to the seizure of any property
19as a result of a jeopardy assessment.

20

SEC. 2.  

Section 9272 of the Revenue and Taxation Code is
21amended to read:

22

9272.  

(a) The board shall release any levy or notice to withhold
23issued pursuant to this part on any property in the event that the
24expense of the sale process exceeds the liability for which the levy
25is made.

26(b) begin insert(1)end insertbegin insertend insertThe Taxpayers’ Rights Advocate may order the release
27of any levy or notice to withhold issued pursuant to this part or,
28within 90 days from the receipt of funds pursuant to a levy or
29notice to withhold, order the return of any amount up tobegin delete oneend deletebegin insert twoend insert
30 thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of moneys
31received, upon his or her finding that the levy or notice to withhold
32threatens the health or welfare of the taxpayer or his or her spouse
33and dependents or family.

begin insert

34(2) The board shall adjust the
35two-thousand-three-hundred-dollar ($2,300) amount specified in
36paragraph (1) as follows:

end insert
begin insert

37(A) On or before March 1, 2014, and on or before March 1 each
38year thereafter, the board shall multiply the amount applicable
39for the current fiscal year by the inflation factor adjustment
40calculated based on the percentage change in the Consumer Price
P4    1Index, as recorded by the California Department of Industrial
2Relations for the most recent year available, and the formula set
3forth in paragraph (2) of subdivision (h) of Section 17041. The
4resulting amount will be the applicable amount for the succeeding
5fiscal year only when the applicable amount computed is equal to
6or exceeds a new operative threshold, as defined in subparagraph
7(C).

end insert
begin insert

8(B) When the applicable amount equals or exceeds an operative
9threshold specified in subparagraph (C), the resulting applicable
10amount, rounded to the nearest multiple of one hundred dollars
11($100), shall be operative for purposes of paragraph (1) beginning
12July 1 of the succeeding fiscal year.

end insert
begin insert

13(C) For purposes of this paragraph, “operative threshold”
14means an amount that exceeds by at least one hundred dollars
15($100) the greater of either the amount specified in paragraph (1)
16or the amount computed pursuant to subparagraphs (A) and (B)
17as the operative adjustment to the amount specified in paragraph
18(1).

end insert

19(c) The board shall not sell any seized property until it has first
20notified the taxpayer in writing of the exemptions from levy under
21Chapter 4 (commencing with Section 703.010) of Division 2 of
22Title 9 of Part 2 of the Code of Civil Procedure.

23(d) This section shall not apply to the seizure of any property
24as a result of a jeopardy assessment.

25

SEC. 3.  

Section 30459.2 of the Revenue and Taxation Code
26 is amended to read:

27

30459.2.  

(a) The board shall release any levy or notice to
28withhold issued pursuant to this part on any property in thebegin delete event
29of any of the following:end delete

30begin delete(1)end deletebegin deleteend deletebegin deleteTheend deletebegin insert event that theend insert expense of the sale process exceeds the
31liability for which the levy is made.

begin delete

32(2) The

end delete

33begin insert(b)end insertbegin insertend insertbegin insert(1)end insertbegin insertend insertbegin insertThe end insertTaxpayers’ Rights Advocatebegin delete ordersend deletebegin insert may orderend insert the
34release ofbegin delete theend deletebegin insert anyend insert levy or notice to withholdbegin insert issued pursuant to
35this part or, within 90 days from the receipt of funds pursuant to
36a levy or notice to withhold, order the return of any amount up to
37two thousand three hundred dollars ($2,300) of moneys received,end insert

38 upon his or her finding that the levy or notice to withhold threatens
39the health or welfare of the taxpayer or his or her spouse and
40dependents or family.

begin insert

P5    1(2) The board shall adjust the
2two-thousand-three-hundred-dollar ($2,300) amount specified in
3paragraph (1) as follows:

end insert
begin insert

4(A) On or before March 1, 2014, and on or before March 1 each
5year thereafter, the board shall multiply the amount applicable
6for the current fiscal year by the inflation factor adjustment
7calculated based on the percentage change in the Consumer Price
8Index, as recorded by the California Department of Industrial
9Relations for the most recent year available, and the formula set
10forth in paragraph (2) of subdivision (h) of Section 17041. The
11resulting amount will be the applicable amount for the succeeding
12fiscal year only when the applicable amount computed is equal to
13or exceeds a new operative threshold, as defined in subparagraph
14(C).

end insert
begin insert

15(B) When the applicable amount equals or exceeds an operative
16threshold specified in subparagraph (C), the resulting applicable
17amount, rounded to the nearest multiple of one hundred dollars
18($100), shall be operative for purposes of paragraph (1) beginning
19July 1 of the succeeding fiscal year.

end insert
begin insert

20(C) For purposes of this paragraph, “operative threshold”
21means an amount that exceeds by at least one hundred dollars
22($100) the greater of either the amount specified in paragraph (1)
23or the amount computed pursuant to subparagraphs (A) and (B)
24as the operative adjustment to the amount specified in paragraph
25(1).

end insert
begin delete

26(b)

end delete

27begin insert(c)end insert The board shall not sell any seized property until it has first
28notified the taxpayer in writing of the exemptions from levy under
29Chapter 4 (commencing with Section 703.010) of Division 2 of
30Title 9 of Part 2 of the Code of Civil Procedure.

begin delete

31(c)

end delete

32begin insert(d)end insert This section shall not apply to the seizure of any property
33as a result of a jeopardy assessment.

34

SEC. 4.  

Section 32472 of the Revenue and Taxation Code is
35amended to read:

36

32472.  

(a) The board shall release any levy or notice to
37withhold issued pursuant to this part on any property in the event
38that the expense of the sale process exceeds the liability for which
39the levy is made.

P6    1(b) begin insert(1)end insertbegin insertend insertThe Taxpayers’ Rights Advocate may order the release
2of any levy or notice to withhold issued pursuant to this part or,
3within 90 days from the receipt of funds pursuant to a levy or
4notice to withhold, order the return of any amount up tobegin delete oneend deletebegin insert twoend insert
5 thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of moneys
6received, upon his or her finding that the levy or notice to withhold
7threatens the health or welfare of the taxpayer or his or her spouse
8and dependents or family.

begin insert

9(2) The board shall adjust the
10two-thousand-three-hundred-dollar ($2,300) amount specified in
11paragraph (1) as follows:

end insert
begin insert

12(A) On or before March 1, 2014, and on or before March 1 each
13year thereafter, the board shall multiply the amount applicable
14for the current fiscal year by the inflation factor adjustment
15calculated based on the percentage change in the Consumer Price
16Index, as recorded by the California Department of Industrial
17Relations for the most recent year available, and the formula set
18forth in paragraph (2) of subdivision (h) of Section 17041. The
19resulting amount will be the applicable amount for the succeeding
20fiscal year only when the applicable amount computed is equal to
21or exceeds a new operative threshold, as defined in subparagraph
22(C).

end insert
begin insert

23(B) When the applicable amount equals or exceeds an operative
24threshold specified in subparagraph (C), the resulting applicable
25amount, rounded to the nearest multiple of one hundred dollars
26($100), shall be operative for purposes of paragraph (1) beginning
27July 1 of the succeeding fiscal year.

end insert
begin insert

28(C) For purposes of this paragraph, “operative threshold”
29means an amount that exceeds by at least one hundred dollars
30($100) the greater of either the amount specified in paragraph (1)
31or the amount computed pursuant to subparagraphs (A) and (B)
32as the operative adjustment to the amount specified in paragraph
33(1).

end insert

34(c) The board shall not sell any seized property until it has first
35notified the taxpayer in writing of the exemptions from levy under
36Chapter 4 (commencing with Section 703.010) of Division 2 of
37Title 9 of Part 2 of the Code of Civil Procedure.

38(d) This section shall not apply to the seizure of any property
39as a result of a jeopardy assessment.

P7    1

SEC. 5.  

Section 40212 of the Revenue and Taxation Code is
2amended to read:

3

40212.  

(a) The board shall release any levy or notice to
4withhold issued pursuant to this part on any property in the event
5that the expense of the sale process exceeds the liability for which
6the levy is made.

7(b) begin insert(1)end insertbegin insertend insertThe Taxpayers’ Rights Advocate may order the release
8of any levy or notice to withhold issued pursuant to this part or,
9within 90 days from the receipt of funds pursuant to a levy or
10notice to withhold, order the return of any amount up tobegin delete oneend deletebegin insert twoend insert
11 thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of moneys
12received, upon his or her finding that the levy or notice to withhold
13threatens the health or welfare of the taxpayer or his or her spouse
14and dependents or family.

begin insert

15(2) The board shall adjust the
16two-thousand-three-hundred-dollar ($2,300) amount specified in
17paragraph (1) as follows:

end insert
begin insert

18(A) On or before March 1, 2014, and on or before March 1 each
19year thereafter, the board shall multiply the amount applicable
20for the current fiscal year by the inflation factor adjustment
21calculated based on the percentage change in the Consumer Price
22Index, as recorded by the California Department of Industrial
23Relations for the most recent year available, and the formula set
24forth in paragraph (2) of subdivision (h) of Section 17041. The
25resulting amount will be the applicable amount for the succeeding
26fiscal year only when the applicable amount computed is equal to
27or exceeds a new operative threshold, as defined in subparagraph
28(C).

end insert
begin insert

29(B) When the applicable amount equals or exceeds an operative
30threshold specified in subparagraph (C), the resulting applicable
31amount, rounded to the nearest multiple of one hundred dollars
32($100), shall be operative for purposes of paragraph (1) beginning
33July 1 of the succeeding fiscal year.

end insert
begin insert

34(C) For purposes of this paragraph, “operative threshold”
35means an amount that exceeds by at least one hundred dollars
36($100) the greater of either the amount specified in paragraph (1)
37or the amount computed pursuant to subparagraphs (A) and (B)
38as the operative adjustment to the amount specified in paragraph
39(1).

end insert

P8    1(c) The board shall not sell any seized property until it first has
2notified the taxpayer in writing of the exemptions from levy under
3Chapter 4 (commencing with Section 703.010) of Division 2 of
4Title 9 of Part 2 of the Code of Civil Procedure.

5(d) This section shall not apply to the seizure of any property
6as a result of a jeopardy assessment.

7

SEC. 6.  

Section 41172 of the Revenue and Taxation Code is
8amended to read:

9

41172.  

(a) The board shall release any levy or notice to
10withhold issued pursuant to this part on any property in the event
11that the expense of the sale process exceeds the liability for which
12the levy is made.

13(b) begin insert(1)end insertbegin insertend insertThe Taxpayers’ Rights Advocate may order the release
14of any levy or notice to withhold issued pursuant to this part or,
15within 90 days from the receipt of funds pursuant to a levy or
16notice to withhold, order the return of any amount up tobegin delete oneend deletebegin insert twoend insert
17 thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of moneys
18received, upon his or her finding that the levy or notice to withhold
19threatens the health or welfare of the taxpayer or his or her spouse
20and dependents or family.

begin insert

21(2) The board shall adjust the
22two-thousand-three-hundred-dollar ($2,300) amount specified in
23paragraph (1) as follows:

end insert
begin insert

24(A) On or before March 1, 2014, and on or before March 1 each
25year thereafter, the board shall multiply the amount applicable
26for the current fiscal year by the inflation factor adjustment
27calculated based on the percentage change in the Consumer Price
28Index, as recorded by the California Department of Industrial
29Relations for the most recent year available, and the formula set
30forth in paragraph (2) of subdivision (h) of Section 17041. The
31resulting amount will be the applicable amount for the succeeding
32fiscal year only when the applicable amount computed is equal to
33or exceeds a new operative threshold, as defined in subparagraph
34(C).

end insert
begin insert

35(B) When the applicable amount equals or exceeds an operative
36threshold specified in subparagraph (C), the resulting applicable
37amount, rounded to the nearest multiple of one hundred dollars
38($100), shall be operative for purposes of paragraph (1) beginning
39July 1 of the succeeding fiscal year.

end insert
begin insert

P9    1(C) For purposes of this paragraph, “operative threshold”
2means an amount that exceeds by at least one hundred dollars
3($100) the greater of either the amount specified in paragraph (1)
4or the amount computed pursuant to subparagraphs (A) and (B)
5as the operative adjustment to the amount specified in paragraph
6(1).

end insert

7(c) The board shall not sell any seized property until it has first
8notified the taxpayer in writing of the exemptions from levy under
9Chapter 4 (commencing with Section 703.010) of Division 2 of
10Title 9 of Part 2 of the Code of Civil Procedure.

11(d) This section shall not apply to the seizure of any property
12as a result of a jeopardy assessment.

13

SEC. 7.  

Section 43523 of the Revenue and Taxation Code is
14amended to read:

15

43523.  

(a) The board shall release any levy or notice to
16withhold issued pursuant to this part on any property in the event
17that the expense of the sale process exceeds the liability for which
18the levy is made.

19(b) begin insert(1)end insertbegin insertend insertThe Taxpayers’ Rights Advocate may order the release
20of any levy or notice to withhold issued pursuant to this part or,
21within 90 days from the receipt of funds pursuant to a levy or
22notice to withhold, order the return of any amount up tobegin delete oneend deletebegin insert twoend insert
23 thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of moneys
24received, upon his or her finding that the levy or notice to withhold
25threatens the health or welfare of the taxpayer or his or her spouse
26and dependents or family.

begin insert

27(2) The board shall adjust the
28two-thousand-three-hundred-dollar ($2,300) amount specified in
29paragraph (1) as follows:

end insert
begin insert

30(A) On or before March 1, 2014, and on or before March 1 each
31year thereafter, the board shall multiply the amount applicable
32for the current fiscal year by the inflation factor adjustment
33calculated based on the percentage change in the Consumer Price
34Index, as recorded by the California Department of Industrial
35Relations for the most recent year available, and the formula set
36forth in paragraph (2) of subdivision (h) of Section 17041. The
37resulting amount will be the applicable amount for the succeeding
38fiscal year only when the applicable amount computed is equal to
39or exceeds a new operative threshold, as defined in subparagraph
40(C).

end insert
begin insert

P10   1(B) When the applicable amount equals or exceeds an operative
2threshold specified in subparagraph (C), the resulting applicable
3amount, rounded to the nearest multiple of one hundred dollars
4($100), shall be operative for purposes of paragraph (1) beginning
5July 1 of the succeeding fiscal year.

end insert
begin insert

6(C) For purposes of this paragraph, “operative threshold”
7means an amount that exceeds by at least one hundred dollars
8($100) the greater of either the amount specified in paragraph (1)
9or the amount computed pursuant to subparagraphs (A) and (B)
10as the operative adjustment to the amount specified in paragraph
11(1).

end insert

12(c) The board shall not sell any seized property until it has first
13notified the taxpayer in writing of the exemptions from levy under
14Chapter 4 (commencing with Section 703.010) of Division 2 of
15Title 9 of Part 2 of the Code of Civil Procedure.

16(d) This section shall not apply to the seizure of any property
17as a result of a jeopardy assessment.

18

SEC. 8.  

Section 45868 of the Revenue and Taxation Code is
19amended to read:

20

45868.  

(a) The board shall release any levy or notice to
21withhold issued pursuant to this part on any property in the event
22that the expense of the sale process exceeds the liability for which
23the levy is made.

24(b) begin insert(1)end insertbegin insertend insertThe Taxpayers’ Rights Advocate may order the release
25of any levy or notice to withhold issued pursuant to this part or,
26within 90 days from the receipt of funds pursuant to a levy or
27notice to withhold, order the return of any amount up tobegin delete oneend deletebegin insert twoend insert
28 thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of moneys
29received, upon his or her finding that the levy or notice to withhold
30threatens the health or welfare of the feepayer or his or her spouse
31and dependents or family.

begin insert

32(2) The board shall adjust the
33two-thousand-three-hundred-dollar ($2,300) amount specified in
34paragraph (1) as follows:

end insert
begin insert

35(A) On or before March 1, 2014, and on or before March 1 each
36year thereafter, the board shall multiply the amount applicable
37for the current fiscal year by the inflation factor adjustment
38calculated based on the percentage change in the Consumer Price
39Index, as recorded by the California Department of Industrial
40Relations for the most recent year available, and the formula set
P11   1forth in paragraph (2) of subdivision (h) of Section 17041. The
2resulting amount will be the applicable amount for the succeeding
3fiscal year only when the applicable amount computed is equal to
4or exceeds a new operative threshold, as defined in subparagraph
5(C).

end insert
begin insert

6(B) When the applicable amount equals or exceeds an operative
7threshold specified in subparagraph (C), the resulting applicable
8amount, rounded to the nearest multiple of one hundred dollars
9($100), shall be operative for purposes of paragraph (1) beginning
10July 1 of the succeeding fiscal year.

end insert
begin insert

11(C) For purposes of this paragraph, “operative threshold”
12means an amount that exceeds by at least one hundred dollars
13($100) the greater of either the amount specified in paragraph (1)
14or the amount computed pursuant to subparagraphs (A) and (B)
15as the operative adjustment to the amount specified in paragraph
16(1).

end insert

17(c) The board shall not sell any seized property until it has first
18notified the feepayer in writing of the exemptions from levy under
19Chapter 4 (commencing with Section 703.010) of Division 2 of
20Title 9 of Part 2 of the Code of Civil Procedure.

21(d) This section shall not apply to the seizure of any property
22as a result of a jeopardy assessment.

23

SEC. 9.  

Section 46623 of the Revenue and Taxation Code is
24amended to read:

25

46623.  

(a) The board shall release any levy or notice to
26withhold issued pursuant to this part on any property in the event
27the expense of the sale process exceeds the liability for which the
28levy is made.

29(b) begin insert(1)end insertbegin insertend insertThe Taxpayers’ Rights Advocate may order the release
30of any levy or notice to withhold issued pursuant to this part or,
31within 90 days from the receipt of the funds pursuant to a levy or
32the notice to withhold, may order the return of any amount up to
33begin delete oneend deletebegin insert twoend insert thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of
34moneys received, upon his or her finding that the levy or notice
35to withhold threatens the health or welfare of the feepayer or his
36or her spouse and dependents.

begin insert

37(2) The board shall adjust the
38two-thousand-three-hundred-dollar ($2,300) amount specified in
39paragraph (1) as follows:

end insert
begin insert

P12   1(A) On or before March 1, 2014, and on or before March 1 each
2year thereafter, the board shall multiply the amount applicable
3for the current fiscal year by the inflation factor adjustment
4calculated based on the percentage change in the Consumer Price
5Index, as recorded by the California Department of Industrial
6Relations for the most recent year available, and the formula set
7forth in paragraph (2) of subdivision (h) of Section 17041. The
8resulting amount will be the applicable amount for the succeeding
9fiscal year only when the applicable amount computed is equal to
10or exceeds a new operative threshold, as defined in subparagraph
11(C).

end insert
begin insert

12(B) When the applicable amount equals or exceeds an operative
13threshold specified in subparagraph (C), the resulting applicable
14amount, rounded to the nearest multiple of one hundred dollars
15($100), shall be operative for purposes of paragraph (1) beginning
16July 1 of the succeeding fiscal year.

end insert
begin insert

17(C) For purposes of this paragraph, “operative threshold”
18means an amount that exceeds by at least one hundred dollars
19($100) the greater of either the amount specified in paragraph (1)
20or the amount computed pursuant to subparagraphs (A) and (B)
21as the operative adjustment to the amount specified in paragraph
22(1).

end insert

23(c) The board shall not sell any seized property until it has first
24notified the taxpayer in writing of the exemptions from levy under
25Chapter 4 (commencing with Section 703.010) of Division 2 of
26Title 9 of Part 2 of the Code of Civil Procedure.

27(d) This section shall not apply to the seizure of any property
28as a result of a jeopardy assessment.

29

SEC. 10.  

Section 50156.12 of the Revenue and Taxation Code
30 is amended to read:

31

50156.12.  

(a) The board shall release any levy or notice to
32withhold issued pursuant to this part on any property in the event
33that the expense of the sale process exceeds the liability for which
34the levy is made.

35(b) begin insert(1)end insertbegin insertend insertThe Taxpayers’ Rights Advocate may order the release
36of any levy or notice to withhold issued pursuant to this part or,
37within 90 days from the receipt of funds pursuant to a levy or
38notice to withhold, order the return of any amount up tobegin delete oneend deletebegin insert twoend insert
39 thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of moneys
40received, upon his or her finding that the levy or notice to withhold
P13   1threatens the health or welfare of the feepayer or his or her spouse
2and dependents or family.

begin insert

3(2) The board shall adjust the
4two-thousand-three-hundred-dollar ($2,300) amount specified in
5paragraph (1) as follows:

end insert
begin insert

6(A) On or before March 1, 2014, and on or before March 1 each
7year thereafter, the board shall multiply the amount applicable
8for the current fiscal year by the inflation factor adjustment
9calculated based on the percentage change in the Consumer Price
10Index, as recorded by the California Department of Industrial
11Relations for the most recent year available, and the formula set
12forth in paragraph (2) of subdivision (h) of Section 17041. The
13resulting amount will be the applicable amount for the succeeding
14fiscal year only when the applicable amount computed is equal to
15or exceeds a new operative threshold, as defined in subparagraph
16(C).

end insert
begin insert

17(B) When the applicable amount equals or exceeds an operative
18threshold specified in subparagraph (C), the resulting applicable
19amount, rounded to the nearest multiple of one hundred dollars
20($100), shall be operative for purposes of paragraph (1) beginning
21July 1 of the succeeding fiscal year.

end insert
begin insert

22(C) For purposes of this paragraph, “operative threshold”
23means an amount that exceeds by at least one hundred dollars
24($100) the greater of either the amount specified in paragraph (1)
25or the amount computed pursuant to subparagraphs (A) and (B)
26as the operative adjustment to the amount specified in paragraph
27(1).

end insert

28(c) The board shall not sell any seized property until it has first
29notified the fee payer in writing of the exemptions from levy under
30Chapter 4 (commencing with Section 703.010) of Division 2 of
31Title 9 of Part 2 of the Code of Civil Procedure.

32(d) This section shall not apply to the seizure of any property
33as a result of a jeopardy assessment.

34

SEC. 11.  

Section 55333 of the Revenue and Taxation Code is
35amended to read:

36

55333.  

(a) The board shall release any levy or notice to
37withhold issued pursuant to this part on any property in thebegin delete event
38of any of the following:end delete

39begin delete(1)end deletebegin deleteend deletebegin deleteTheend deletebegin insert event that theend insert expense of the sale process exceeds the
40liability for which the levy is made.

begin delete

P14   1(2) The

end delete

2begin insert(b)end insertbegin insertend insertbegin insert(1)end insertbegin insertend insertbegin insertThe end insertTaxpayers’ Rights Advocatebegin delete ordersend deletebegin insert may orderend insert the
3release ofbegin delete theend deletebegin insert anyend insert levy or notice to withhold upon his or her finding
4that the levy or notice to withholdbegin insert issued pursuant to this part or,
5within 90 days from the receipt of funds pursuant to a levy or notice
6to withhold, order the return of any amount up to two thousand
7three hundred dollars ($2,300) of moneys received,end insert
threatens the
8health or welfare of the taxpayer or his or her spouse and
9dependents or family.

begin insert

10(2) The board shall adjust the
11two-thousand-three-hundred-dollar ($2,300) amount specified in
12paragraph (1) as follows:

end insert
begin insert

13(A) On or before March 1, 2014, and on or before March 1 each
14year thereafter, the board shall multiply the amount applicable
15for the current fiscal year by the inflation factor adjustment
16calculated based on the percentage change in the Consumer Price
17Index, as recorded by the California Department of Industrial
18Relations for the most recent year available, and the formula set
19forth in paragraph (2) of subdivision (h) of Section 17041. The
20resulting amount will be the applicable amount for the succeeding
21fiscal year only when the applicable amount computed is equal to
22or exceeds a new operative threshold, as defined in subparagraph
23(C).

end insert
begin insert

24(B) When the applicable amount equals or exceeds an operative
25threshold specified in subparagraph (C), the resulting applicable
26amount, rounded to the nearest multiple of one hundred dollars
27($100), shall be operative for purposes of paragraph (1) beginning
28July 1 of the succeeding fiscal year.

end insert
begin insert

29(C) For purposes of this paragraph, “operative threshold”
30means an amount that exceeds by at least one hundred dollars
31($100) the greater of either the amount specified in paragraph (1)
32or the amount computed pursuant to subparagraphs (A) and (B)
33as the operative adjustment to the amount specified in paragraph
34(1).

end insert
begin delete

35(b)

end delete

36begin insert(c)end insert The board shall not sell any seized property until it has first
37notified the taxpayer in writing of the exemptions from levy under
38Chapter 4 (commencing with Section 703.010) of Title 9 of the
39Code of Civil Procedure.

begin delete

40(c)

end delete

P15   1begin insert(d)end insert This section shall not apply to the seizure of any property
2as a result of a jeopardy assessment.

3

SEC. 12.  

Section 60632 of the Revenue and Taxation Code is
4amended to read:

5

60632.  

(a) The board shall release any levy or notice to
6withhold issued pursuant to this part on any property in the event
7the expense of the sale process exceeds the liability for which the
8levy is made.

9(b) begin insert(1)end insertbegin insertend insertThe Taxpayers’ Rights Advocate may order the release
10of any levy or notice to withhold issued pursuant to this part, or
11within 90 days from the receipt of the funds pursuant to a levy or
12notice to withhold may order the return of any amount up tobegin delete oneend delete
13begin insert twoend insert thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of
14moneys received, upon his or her finding that the levy or notice
15to withhold threatens the health or welfare of the taxpayer or his
16or her spouse or dependents.

begin insert

17(2) The board shall adjust the
18two-thousand-three-hundred-dollar ($2,300) amount specified in
19paragraph (1) as follows:

end insert
begin insert

20(A) On or before March 1, 2014, and on or before March 1 each
21year thereafter, the board shall multiply the amount applicable
22for the current fiscal year by the inflation factor adjustment
23calculated based on the percentage change in the Consumer Price
24Index, as recorded by the California Department of Industrial
25Relations for the most recent year available, and the formula set
26forth in paragraph (2) of subdivision (h) of Section 17041. The
27resulting amount will be the applicable amount for the succeeding
28fiscal year only when the applicable amount computed is equal to
29or exceeds a new operative threshold, as defined in subparagraph
30(C).

end insert
begin insert

31(B) When the applicable amount equals or exceeds an operative
32threshold specified in subparagraph (C), the resulting applicable
33amount, rounded to the nearest multiple of one hundred dollars
34($100), shall be operative for purposes of paragraph (1) beginning
35July 1 of the succeeding fiscal year.

end insert
begin insert

36(C) For purposes of this paragraph, “operative threshold”
37means an amount that exceeds by at least one hundred dollars
38($100) the greater of either the amount specified in paragraph (1)
39or the amount computed pursuant to subparagraphs (A) and (B)
P16   1as the operative adjustment to the amount specified in paragraph
2(1).

end insert

3(c) The board shall not sell any seized property until it has first
4notified the taxpayer in writing of the exemptions from levy under
5Chapter 4 (commencing with Section 703.010) of Title 9 of the
6Code of Civil Procedure.

7(d) This section shall not apply to the seizure of any property
8as a result of a jeopardy assessment.



O

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