BILL NUMBER: AB 1183	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Wilk

                        FEBRUARY 27, 2015

   An act to amend Section 6456 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1183, as introduced, Wilk. Sales and use taxes: deficiencies:
judgment of dissolution of marriage.
   Existing sales and use tax laws impose a tax on retailers measured
by the gross receipts from the sale of tangible personal property
sold at retail in this state, or on the storage, use, or other
consumption in this state of tangible personal property purchased
from a retailer for storage, use, or other consumption in this state.

   Existing law also sets forth the liability of marital property
that is held as community property, including providing that the
community estate is liable for a debt incurred by either spouse
before or during marriage, regardless of which spouse has the
management and control of the property and regardless of whether one
or both spouses are parties to the debt or to a judgment for the
debt.
   This bill would, notwithstanding those laws governing the
liability of marital property, relieve a spouse of an unpaid sales or
use tax or deficiency of that tax, if the other spouse has the sole
obligation arising from a judgment of dissolution of marriage to pay
the unpaid tax or a deficiency, or any portion of either.
   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 6456 of the Revenue and Taxation Code is
amended to read:
   6456.  (a) Under regulations prescribed by the board, if:
  (1) A tax liability under this part was understated by a failure to
file a return required to be filed under this part, by the omission
of an amount properly includable therein, or by erroneous deductions
or credits claimed on a return, and the understatement of tax
liability is attributable to one spouse; or any amount of the tax
reported on a return was unpaid and the nonpayment of the reported
tax liability is attributable to one spouse,
  (2) The other spouse establishes that he or she did not know of,
and had no reason to know of, that understatement or nonpayment, and
  (3) Taking into account whether or not the other spouse
significantly benefited directly or indirectly from the
understatement or the nonpayment and taking into account all other
facts and circumstances, it is inequitable to hold the other spouse
liable for the deficiency in tax attributable to that understatement
or nonpayment,
then the other spouse shall be relieved of liability for tax
(including interest, penalties, and other amounts) to the extent that
the liability is attributable to that understatement or nonpayment
of tax.
   (b) For purposes of this section, the determination of the spouse
to whom items of understatement or nonpayment are attributable shall
be made without regard to community property laws.
   (c) This section shall apply to all calendar quarters subject to
the provisions of this part, but shall not apply to any calendar
quarter that is more than five years from the final date on the
board-issued determination, five years from the return due date for
nonpayment on a return, or one year from the first contact with the
spouse making a claim under this section; or that has been closed by
res judicata, whichever is later.
   (d) For purposes of paragraph (2) of subdivision (a), "reason to
know" means whether or not a reasonably prudent person would have had
reason to know of the understatement or nonpayment.
   (e) For purposes of this section, with respect to a failure to
file a return or an omission of an item from the return,
"attributable to one spouse" may be determined by whether a spouse
rendered substantial service as a retailer of taxable items to which
the understatement is attributable. If neither spouse rendered
substantial services as a retailer, then the attribution of
applicable items of understatement shall be treated as community
property. An erroneous deduction or credit shall be attributable to
the spouse who caused that deduction or credit to be entered on the
return.
   (f) Under procedures prescribed by the board, if, taking into
account all the facts and circumstances, it is inequitable to hold
the other spouse liable for any unpaid tax or any deficiency (or any
portion of either) attributable to any item for which relief is not
available under subdivision (a), the board may relieve the other
spouse of that liability. 
   (g) Notwithstanding Part 3 (commencing with Section 900) of
Division 4 of the Family Code, if a spouse has the sole legal
obligation to pay the unpaid tax or a deficiency, or any portion of
either, the other spouse shall be relieved of that unpaid tax or
deficiency. For purposes of this subdivision, a legal obligation
means an obligation arising from a judgment of dissolution of
marriage.