BILL NUMBER: AB 1277 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Brough
( Coauthor: Assembly Member
Holden )
FEBRUARY 27, 2015
An act to amend Section 6002 of the Revenue and Taxation
Code, relating to taxation. 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 1277, as amended, Brough. Sales and use tax.
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. Under those
laws, if the State Board of Equalization believes that the collection
of any amount of tax imposed by those laws will be jeopardized by
delay, the board is required to make a determination of the amount of
tax, which is immediately due and payable.
This bill would increase, under each of those laws the amount the
Taxpayers' Rights Advocate is authorized to order returned to a
taxpayer to $2,300 in any monthly period, and would authorize this
amount to be adjusted for inflation, as provided. This bill would
also authorize the Taxpayers' Rights Advocate to order amounts
returned in the case of a seizure of property as a result of a
jeopardy assessment, as specified.
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. Under those laws, if the State Board of
Equalization believes that the collection of any amount of tax
imposed by those laws will be jeopardized by delay, the board is
required to make a determination of the amount of tax, which is
immediately due and payable.
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 in any monthly period, 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. This bill would
also authorize the Taxpayers' Rights Advocate to order amounts
returned in the case of a seizure of property as a result of a
jeopardy assessment, as specified.
The Sales and Use Tax Law imposes a sales tax on retailers
measured by the gross receipts from the sale of tangible personal
property sold at retail in this state, and a use tax 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.
This bill would make a technical, nonsubstantive change to that
law.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7094 of the Revenue
and Taxation Code is amended to read:
7094. (a) The board shall release any levy or notice to withhold
issued pursuant to this part on any property in the event that the
expense of the sale process exceeds the liability for which the levy
is made.
(b) (1) (A) The
Taxpayers' Rights Advocate may order the release of any levy or
notice to withhold issued pursuant to this part or, within 90 days
from the receipt of funds pursuant to a levy or notice to withhold,
order the return of any amount up to one two
thousand five three hundred
dollars ($1,500) ($2,300) of moneys
received, 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.
(B) The amount the Taxpayers' Rights Advocate may release or
return to each taxpayer subject to a levy or notice to withhold, is
limited to two thousand three hundred dollars ($2,300), or the
adjusted amount as specified in paragraph (2), in any monthly period.
(C) Notwithstanding subdivision (d), the Taxpayers' Rights
Advocate may order amounts returned in the case of a seizure of
property as a result of a jeopardy assessment, subject to the amounts
set or adjusted pursuant to this section.
(2) (A) The board shall adjust the
two-thousand-three-hundred-dollar ($2,300) amount specified in
paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year
thereafter, the board shall multiply the amount applicable for the
current fiscal year by the inflation factor adjustment calculated
based on the percentage change in the Consumer Price Index, as
recorded by the California Department of Industrial Relations for the
most recent year available, and the formula set forth in paragraph
(2) of subdivision (h) of Section 17041. The resulting amount will be
the applicable amount for the succeeding fiscal year only when the
applicable amount computed is equal to or exceeds a new operative
threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative
threshold specified in subparagraph (B), the resulting applicable
amount, rounded to the nearest multiple of one hundred dollars
($100), shall be operative for purposes of paragraph (1) beginning
July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, "operative threshold" means an
amount that exceeds by at least one hundred dollars ($100) the
greater of either the amount specified in paragraph (1) or the amount
computed pursuant to subparagraph (A) as the operative adjustment to
the amount specified in paragraph (1).
(c) The board shall not sell any seized property until it has
first notified the taxpayer in writing of the exemptions from levy
under Chapter 4 (commencing with Section 703.010) of Title 9 of the
Code of Civil Procedure.
(d) This Except as provided in subparagraph
(C) of paragraph (1) of subdivision (b), this section shall
not apply to the seizure of any property as a result of a jeopardy
assessment.
SEC. 2. Section 9272 of the Revenue and
Taxation Code is amended to read:
9272. (a) The board shall release any levy or notice to withhold
issued pursuant to this part on any property in the event that the
expense of the sale process exceeds the liability for which the levy
is made.
(b) (1) (A) The
Taxpayers' Rights Advocate may order the release of any levy or
notice to withhold issued pursuant to this part or, within 90 days
from the receipt of funds pursuant to a levy or notice to withhold,
order the return of any amount up to one two
thousand five three hundred
dollars ($1,500) ($2,300) of moneys
received, 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.
(B) The amount the Taxpayers' Rights Advocate may release or
return to each taxpayer subject to a levy or notice to withhold, is
limited to two thousand three hundred dollars ($2,300), or the
adjusted amount as specified in paragraph (2), in any monthly period.
(C) Notwithstanding subdivision (d), the Taxpayers' Rights
Advocate may order amounts returned in the case of a seizure of
property as a result of a jeopardy assessment, subject to the amounts
set or adjusted pursuant to this section.
(2) (A) The board shall adjust the
two-thousand-three-hundred-dollar ($2,300) amount specified in
paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year
thereafter, the board shall multiply the amount applicable for the
current fiscal year by the inflation factor adjustment calculated
based on the percentage change in the Consumer Price Index, as
recorded by the California Department of Industrial Relations for the
most recent year available, and the formula set forth in paragraph
(2) of subdivision (h) of Section 17041. The resulting amount will be
the applicable amount for the succeeding fiscal year only when the
applicable amount computed is equal to or exceeds a new operative
threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative
threshold specified in subparagraph (B), the resulting applicable
amount, rounded to the nearest multiple of one hundred dollars
($100), shall be operative for purposes of paragraph (1) beginning
July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, "operative threshold" means an
amount that exceeds by at least one hundred dollars ($100) the
greater of either the amount specified in paragraph (1) or the amount
computed pursuant to subparagraph (A) as the operative adjustment to
the amount specified in paragraph (1).
(c) The board shall not sell any seized property until it has
first notified the taxpayer in writing of the exemptions from levy
under Chapter 4 (commencing with Section 703.010) of Division 2 of
Title 9 of Part 2 of the Code of Civil Procedure.
(d) This Except as provided in
subparagraph (C) of paragraph (1) of subdivision (b), this
section shall not apply to the seizure of any property as a result of
a jeopardy assessment.
SEC. 3. Section 30459.2 of the Revenue
and Taxation Code is amended to read:
30459.2. (a) The board shall release any levy or notice to
withhold issued pursuant to this part on any property in the event
that the expense of any of the
following: sale process exceeds the liability for
which the levy is made.
(1) The expense of the sale process exceeds the liability for
which the levy is made.
(2)
(b) (1) (A)
The Taxpayers' Rights Advocate orders may
order the release of the any levy
or notice to withhold issued pursuant to this part or, within
90 days from the receipt of funds pursuant to a levy or notice to
with hold, order the return of any amount up to two
thousand three hundred dollars ($2,300) of moneys received,
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.
(B) The amount the Taxpayers' Rights Advocate may release or
return to each taxpayer subject to a levy or notice to withhold, is
limited to two thousand three hundred dollars ($2,300), or the
adjusted amount as specified in paragraph (2), in any monthly period.
(C) Notwithstanding subdivision (d), the Taxpayers' Rights
Advocate may order amounts returned in the case of a seizure of
property as a result of a jeopardy assessment, subject to the amounts
set or adjusted pursuant to this section.
(2) (A) The board shall adjust the
two-thousand-three-hundred-dollar ($2,300) amount specified in
paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year
thereafter, the board shall multiply the amount applicable for the
current fiscal year by the inflation factor adjustment calculated
based on the percentage change in the Consumer Price Index, as
recorded by the California Department of Industrial Relations for the
most recent year available, and the formula set forth in paragraph
(2) of subdivision (h) of Section 17041. The resulting amount will be
the applicable amount for the succeeding fiscal year only when the
applicable amount computed is equal to or exceeds a new operative
threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative
threshold specified in subparagraph (B), the resulting applicable
amount, rounded to the nearest multiple of one hundred dollars
($100), shall be operative for purposes of paragraph (1) beginning
July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, "operative threshold" means an
amount that exceeds by at least one hundred dollars ($100) the
greater of either the amount specified in paragraph (1) or the amount
computed pursuant to subparagraph (A) as the operative adjustment to
the amount specified in paragraph (1).
(b)
(c) The board shall not sell any seized property until
it has first notified the taxpayer in writing of the exemptions from
levy under Chapter 4 (commencing with Section 703.010) of Division 2
of Title 9 of Part 2 of the Code of Civil Procedure.
(c)This
(d) Except as provided in subparagraph (c) of
paragraph (1) of subdivision (b), this section shall not apply
to the seizure of any property as a result of a jeopardy assessment.
SEC. 4. Section 32472 of the Revenue
and Taxation Code is amended to read:
32472. (a) The board shall release any levy or notice to withhold
issued pursuant to this part on any property in the event that the
expense of the sale process exceeds the liability for which the levy
is made.
(b) (1) (A) The
Taxpayers' Rights Advocate may order the release of any levy or
notice to withhold issued pursuant to this part or, within 90 days
from the receipt of funds pursuant to a levy or notice to withhold,
order the return of any amount up to one two
thousand five three hundred
dollars ($1,500) ($2,300) of moneys
received, 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.
(B) The amount the Taxpayers' Rights Advocate may release or
return to each taxpayer subject to a levy or notice to withhold, is
limited to two thousand three hundred dollars ($2,300), or the
adjusted amount as specified in paragraph (2), in any monthly period.
(C) Notwithstanding subdivision (d), the Taxpayers' Rights
Advocate may order amounts returned in the case of a seizure of
property as a result of a jeopardy assessment, subject to the amounts
set or adjusted pursuant to this section.
(2) (A) The board shall adjust the
two-thousand-three-hundred-dollar ($2,300) amount specified in
paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year
thereafter, the board shall multiply the amount applicable for the
current fiscal year by the inflation factor adjustment calculated
based on the percentage change in the Consumer Price Index, as
recorded by the California Department of Industrial Relations for the
most recent year available, and the formula set forth in paragraph
(2) of subdivision (h) of Section 17041. The resulting amount will be
the applicable amount for the succeeding fiscal year only when the
applicable amount computed is equal to or exceeds a new operative
threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative
threshold specified in subparagraph (B), the resulting applicable
amount, rounded to the nearest multiple of one hundred dollars
($100), shall be operative for purposes of paragraph (1) beginning
July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, "operative threshold" means an
amount that exceeds by at least one hundred dollars ($100) the
greater of either the amount specified in paragraph (1) or the amount
computed pursuant to subparagraph (A) as the operative adjustment to
the amount specified in paragraph (1).
(c) The board shall not sell any seized property until it has
first notified the taxpayer in writing of the exemptions from levy
under Chapter 4 (commencing with Section 703.010) of Division 2 of
Title 9 of Part 2 of the Code of Civil Procedure.
(d) This Except as provided in
subparagraph (C) of paragraph (1) of subdivision (b), this
section shall not apply to the seizure of any property as a result of
a jeopardy assessment.
SEC. 5. Section 40212 of the Revenue
and Taxation Code is amended to read:
40212. (a) The board shall release any levy or notice to withhold
issued pursuant to this part on any property in the event that the
expense of the sale process exceeds the liability for which the levy
is made.
(b) (1) (A) The
Taxpayers' Rights Advocate may order the release of any levy or
notice to withhold issued pursuant to this part or, within 90 days
from the receipt of funds pursuant to a levy or notice to withhold,
order the return of any amount up to one two
thousand five three hundred
dollars ($1,500) ($2,300) of moneys
received, 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.
(B) The amount the Taxpayers' Rights Advocate may release or
return to each taxpayer subject to a levy or notice to withhold, is
limited to two thousand three hundred dollars ($2,300), or the
adjusted amount as specified in paragraph (2), in any monthly period.
(C) Notwithstanding subdivision (d), the Taxpayers' Rights
Advocate may order amounts returned in the case of a seizure of
property as a result of a jeopardy assessment, subject to the amounts
set or adjusted pursuant to this section.
(2) (A) The board shall adjust the
two-thousand-three-hundred-dollar ($2,300) amount specified in
paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year
thereafter, the board shall multiply the amount applicable for the
current fiscal year by the inflation factor adjustment calculated
based on the percentage change in the Consumer Price Index, as
recorded by the California Department of Industrial Relations for the
most recent year available, and the formula set forth in paragraph
(2) of subdivision (h) of Section 17041. The resulting amount will be
the applicable amount for the succeeding fiscal year only when the
applicable amount computed is equal to or exceeds a new operative
threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative
threshold specified in subparagraph (B), the resulting applicable
amount, rounded to the nearest multiple of one hundred dollars
($100), shall be operative for purposes of paragraph (1) beginning
July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, "operative threshold" means an
amount that exceeds by at least one hundred dollars ($100) the
greater of either the amount specified in paragraph (1) or the amount
computed pursuant to subparagraph (A) as the operative adjustment to
the amount specified in paragraph (1).
(c) The board shall not sell any seized property until it first
has notified the taxpayer in writing of the exemptions from levy
under Chapter 4 (commencing with Section 703.010) of Division 2 of
Title 9 of Part 2 of the Code of Civil Procedure.
(d) This Except as provided in
subparagraph (C) of paragraph (1) of subdivision (b), this
section shall not apply to the seizure of any property as a result of
a jeopardy assessment.
SEC. 6. Section 41172 of the Revenue
and Taxation Code is amended to read:
41172. (a) The board shall release any levy or notice to withhold
issued pursuant to this part on any property in the event that the
expense of the sale process exceeds the liability for which the levy
is made.
(b) (1) (A) The
Taxpayers' Rights Advocate may order the release of any levy or
notice to withhold issued pursuant to this part or, within 90 days
from the receipt of funds pursuant to a levy or notice to withhold,
order the return of any amount up to one two
thousand five three hundred
dollars ($1,500) ($2,300) of moneys
received, 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.
(B) The amount the Taxpayers' Rights Advocate may release or
return to each taxpayer subject to a levy or notice to withhold, is
limited to two thousand three hundred dollars ($2,300), or the
adjusted amount as specified in paragraph (2), in any monthly period.
(C) Notwithstanding subdivision (d), the Taxpayers' Rights
Advocate may order amounts returned in the case of a seizure of
property as a result of a jeopardy assessment, subject to the amounts
set or adjusted pursuant to this section.
(2) (A) The board shall adjust the
two-thousand-three-hundred-dollar ($2,300) amount specified in
paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year
thereafter, the board shall multiply the amount applicable for the
current fiscal year by the inflation factor adjustment calculated
based on the percentage change in the Consumer Price Index, as
recorded by the California Department of Industrial Relations for the
most recent year available, and the formula set forth in paragraph
(2) of subdivision (h) of Section 17041. The resulting amount will be
the applicable amount for the succeeding fiscal year only when the
applicable amount computed is equal to or exceeds a new operative
threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative
threshold specified in subparagraph (B), the resulting applicable
amount, rounded to the nearest multiple of one hundred dollars
($100), shall be operative for purposes of paragraph (1) beginning
July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, "operative threshold" means an
amount that exceeds by at least one hundred dollars ($100) the
greater of either the amount specified in paragraph (1) or the amount
computed pursuant to subparagraph (A) as the operative adjustment to
the amount specified in paragraph (1).
(c) The board shall not sell any seized property until it has
first notified the taxpayer in writing of the exemptions from levy
under Chapter 4 (commencing with Section 703.010) of Division 2 of
Title 9 of Part 2 of the Code of Civil Procedure.
(d) This Except as provided in
subparagraph (C) of paragraph (1) of subdivision (b), this
section shall not apply to the seizure of any property as a result of
a jeopardy assessment.
SEC. 7. Section 43523 of the Revenue
and Taxation Code is amended to read:
43523. (a) The board shall release any levy or notice to withhold
issued pursuant to this part on any property in the event that the
expense of the sale process exceeds the liability for which the levy
is made.
(b) (1) (A) The
Taxpayers' Rights Advocate may order the release of any levy or
notice to withhold issued pursuant to this part or, within 90 days
from the receipt of funds pursuant to a levy or notice to withhold,
order the return of any amount up to one two
thousand five three hundred
dollars ($1,500) ($2,300) of moneys
received, 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.
(B) The amount the Taxpayers' Rights Advocate may release or
return to each taxpayer subject to a levy or notice to withhold, is
limited to two thousand three hundred dollars ($2,300), or the
adjusted amount as specified in paragraph (2), in any monthly period.
(C) Notwithstanding subdivision (d), the Taxpayers' Rights
Advocate may order amounts returned in the case of a seizure of
property as a result of a jeopardy assessment, subject to the amounts
set or adjusted pursuant to this section.
(2) (A) The board shall adjust the
two-thousand-three-hundred-dollar ($2,300) amount specified in
paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year
thereafter, the board shall multiply the amount applicable for the
current fiscal year by the inflation factor adjustment calculated
based on the percentage change in the Consumer Price Index, as
recorded by the California Department of Industrial Relations for the
most recent year available, and the formula set forth in paragraph
(2) of subdivision (h) of Section 17041. The resulting amount will be
the applicable amount for the succeeding fiscal year only when the
applicable amount computed is equal to or exceeds a new operative
threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative
threshold specified in subparagraph (B), the resulting applicable
amount, rounded to the nearest multiple of one hundred dollars
($100), shall be operative for purposes of paragraph (1) beginning
July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, "operative threshold" means an
amount that exceeds by at least one hundred dollars ($100) the
greater of either the amount specified in paragraph (1) or the amount
computed pursuant to subparagraph (A) as the operative adjustment to
the amount specified in paragraph (1).
(c) The board shall not sell any seized property until it has
first notified the taxpayer in writing of the exemptions from levy
under Chapter 4 (commencing with Section 703.010) of Division 2 of
Title 9 of Part 2 of the Code of Civil Procedure.
(d) This Except as provided in
subparagraph (C) of paragraph (1) of subdivision (b), this
section shall not apply to the seizure of any property as a result of
a jeopardy assessment.
SEC. 8. Section 45868 of the Revenue
and Taxation Code is amended to read:
45868. (a) The board shall release any levy or notice to withhold
issued pursuant to this part on any property in the event that the
expense of the sale process exceeds the liability for which the levy
is made.
(b) (1) (A) The
Taxpayers' Rights Advocate may order the release of any levy or
notice to withhold issued pursuant to this part or, within 90 days
from the receipt of funds pursuant to a levy or notice to withhold,
order the return of any amount up to one two
thousand five three hundred
dollars ($1,500) ($2,300) of moneys
received, upon his or her finding that the levy or notice to withhold
threatens the health or welfare of the feepayer or his or her spouse
and dependents or family.
(B) The amount the Taxpayers' Rights Advocate may release or
return to each taxpayer subject to a levy or notice to withhold, is
limited to two thousand three hundred dollars ($2,300), or the
adjusted amount as specified in paragraph (2), in any monthly period.
(C) Notwithstanding subdivision (d), the Taxpayers' Rights
Advocate may order amounts returned in the case of a seizure of
property as a result of a jeopardy assessment, subject to the amounts
set or adjusted pursuant to this section.
(2) (A) The board shall adjust the
two-thousand-three-hundred-dollar ($2,300) amount specified in
paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year
thereafter, the board shall multiply the amount applicable for the
current fiscal year by the inflation factor adjustment calculated
based on the percentage change in the Consumer Price Index, as
recorded by the California Department of Industrial Relations for the
most recent year available, and the formula set forth in paragraph
(2) of subdivision (h) of Section 17041. The resulting amount will be
the applicable amount for the succeeding fiscal year only when the
applicable amount computed is equal to or exceeds a new operative
threshold, as defined in subparagraph (B).
(ii) When the
applicable amount equals or exceeds an operative threshold specified
in subparagraph (B), the resulting applicable amount, rounded to the
nearest multiple of one hundred dollars ($100), shall be operative
for purposes of paragraph (1) beginning July 1 of the succeeding
fiscal year.
(B) For purposes of this paragraph, "operative threshold" means an
amount that exceeds by at least one hundred dollars ($100) the
greater of either the amount specified in paragraph (1) or the amount
computed pursuant to subparagraph (A) as the operative adjustment to
the amount specified in paragraph (1).
(c) The board shall not sell any seized property until it has
first notified the feepayer in writing of the exemptions from levy
under Chapter 4 (commencing with Section 703.010) of Division 2 of
Title 9 of Part 2 of the Code of Civil Procedure.
(d) This Except as provided in
subparagraph (C) of paragraph (1) of subdivision (b), this
section shall not apply to the seizure of any property as a result of
a jeopardy assessment.
SEC. 9. Section 46623 of the Revenue
and Taxation Code is amended to read:
46623. (a) The board shall release any levy or notice to withhold
issued pursuant to this part on any property in the event the
expense of the sale process exceeds the liability for which the levy
is made.
(b) (1) (A) The
Taxpayers' Rights Advocate may order the release of any levy or
notice to withhold issued pursuant to this part or, within 90 days
from the receipt of the funds pursuant to a levy or the notice to
withhold, may order the return of any amount up to one
two thousand five three
hundred dollars ($1,500) ($2,300)
of moneys received, upon his or her finding that the levy or notice
to withhold threatens the health or welfare of the feepayer or his or
her spouse and dependents.
(B) The amount the Taxpayers' Rights Advocate may release or
return to each taxpayer subject to a levy or notice to withhold, is
limited to two thousand three hundred dollars ($2,300), or the
adjusted amount as specified in paragraph (2), in any monthly period.
(C) Notwithstanding subdivision (d), the Taxpayers' Rights
Advocate may order amounts returned in the case of a seizure of
property as a result of a jeopardy assessment, subject to the amounts
set or adjusted pursuant to this section.
(2) (A) The board shall adjust the
two-thousand-three-hundred-dollar ($2,300) amount specified in
paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year
thereafter, the board shall multiply the amount applicable for the
current fiscal year by the inflation factor adjustment calculated
based on the percentage change in the Consumer Price Index, as
recorded by the California Department of Industrial Relations for the
most recent year available, and the formula set forth in paragraph
(2) of subdivision (h) of Section 17041. The resulting amount will be
the applicable amount for the succeeding fiscal year only when the
applicable amount computed is equal to or exceeds a new operative
threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative
threshold specified in subparagraph (B), the resulting applicable
amount, rounded to the nearest multiple of one hundred dollars
($100), shall be operative for purposes of paragraph (1) beginning
July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, "operative threshold" means an
amount that exceeds by at least one hundred dollars ($100) the
greater of either the amount specified in paragraph (1) or the amount
computed pursuant to subparagraph (A) as the operative adjustment to
the amount specified in paragraph (1).
(c) The board shall not sell any seized property until it has
first notified the taxpayer in writing of the exemptions from levy
under Chapter 4 (commencing with Section 703.010) of Division 2 of
Title 9 of Part 2 of the Code of Civil Procedure.
(d) This Except as provided in
subparagraph (C) of paragraph (1) of subdivision (b), this
section shall not apply to the seizure of any property as a result of
a jeopardy assessment.
SEC. 10. Section 50156.12 of the
Revenue and Taxation Code is amended to read:
50156.12. (a) The board shall release any levy or notice to
withhold issued pursuant to this part on any property in the event
that the expense of the sale process exceeds the liability for which
the levy is made.
(b) (1) (A) The
Taxpayers' Rights Advocate may order the release of any levy or
notice to withhold issued pursuant to this part or, within 90 days
from the receipt of funds pursuant to a levy or notice to withhold,
order the return of any amount up to one two
thousand five three hundred
dollars ($1,500) ($2,300) of moneys
received, upon his or her finding that the levy or notice to withhold
threatens the health or welfare of the feepayer or his or her spouse
and dependents or family.
(B) The amount the Taxpayers' Rights Advocate may release or
return to each taxpayer subject to a levy or notice to withhold, is
limited to two thousand three hundred dollars ($2,300), or the
adjusted amount as specified in paragraph (2), in any monthly period.
(C) Notwithstanding subdivision (d), the Taxpayers' Rights
Advocate may order amounts returned in the case of a seizure of
property as a result of a jeopardy assessment, subject to the amounts
set or adjusted pursuant to this section.
(2) (A) The board shall adjust the
two-thousand-three-hundred-dollar ($2,300) amount specified in
paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year
thereafter, the board shall multiply the amount applicable for the
current fiscal year by the inflation factor adjustment calculated
based on the percentage change in the Consumer Price Index, as
recorded by the California Department of Industrial Relations for the
most recent year available, and the formula set forth in paragraph
(2) of subdivision (h) of Section 17041. The resulting amount will be
the applicable amount for the succeeding fiscal year only when the
applicable amount computed is equal to or exceeds a new operative
threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative
threshold specified in subparagraph (B), the resulting applicable
amount, rounded to the nearest multiple of one hundred dollars
($100), shall be operative for purposes of paragraph (1) beginning
July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, "operative threshold" means an
amount that exceeds by at least one hundred dollars ($100) the
greater of either the amount specified in paragraph (1) or the amount
computed pursuant to subparagraph (A) as the operative adjustment to
the amount specified in paragraph (1).
(c) The board shall not sell any seized property until it has
first notified the fee payer in writing of the exemptions from levy
under Chapter 4 (commencing with Section 703.010) of Division 2 of
Title 9 of Part 2 of the Code of Civil Procedure.
(d) This Except as provided in
subparagraph (C) of paragraph (1) of subdivision (b), this
section shall not apply to the seizure of any property as a result of
a jeopardy assessment.
SEC. 11. Section 55333 of the Revenue
and Taxation Code is amended to read:
55333. (a) The board shall release any levy or notice to withhold
issued pursuant to this part on any property in the event that
the expense of any of the
following: sale process exceeds the liability for
which the levy is made.
(1) The expense of the sale process exceeds the liability for
which the levy is made.
(2)
(b) (1) (A)
The Taxpayers' Rights Advocate orders may
order the release of the any levy
or notice to withhold upon his or her finding that the levy or
notice to withhold issued pursuant to this part or, within 90
days from the receipt of funds pursuant to a levy or notice to
withhold, order the return of any amount up to two thousand three
hundred dollars ($2,300) of moneys received, threatens the
health or welfare of the taxpayer or his or her spouse and dependents
or family.
(B) The amount the Taxpayers' Rights Advocate may release or
return to each taxpayer subject to a levy or notice to withhold, is
limited to two thousand three hundred dollars ($2,300), or the
adjusted amount as specified in paragraph (2), in any monthly period.
(C) Notwithstanding subdivision (d), the Taxpayers' Rights
Advocate may order amounts returned in the case of a seizure of
property as a result of a jeopardy assessment, subject to the amounts
set or adjusted pursuant to this section.
(2) (A) The board shall adjust the
two-thousand-three-hundred-dollar ($2,300) amount specified in
paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year
thereafter, the board shall multiply the amount applicable for the
current fiscal year by the inflation factor adjustment calculated
based on the percentage change in the Consumer Price Index, as
recorded by the California Department of Industrial Relations for the
most recent year available, and the formula set forth in paragraph
(2) of subdivision (h) of Section 17041. The resulting amount will be
the applicable amount for the succeeding fiscal year only when the
applicable amount computed is equal to or exceeds a new operative
threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative
threshold specified in subparagraph (B), the resulting applicable
amount, rounded to the nearest multiple of one hundred dollars
($100), shall be operative for purposes of paragraph (1) beginning
July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, "operative threshold" means an
amount that exceeds by at least one hundred dollars ($100) the
greater of either the amount specified in paragraph (1) or the amount
computed pursuant to subparagraph (A) as the operative adjustment to
the amount specified in paragraph (1).
(b)
(c) The board shall not sell any seized property until
it has first notified the taxpayer in writing of the exemptions from
levy under Chapter 4 (commencing with Section 703.010) of
Division 2 of Title 9 of Part 2 of the Code of Civil
Procedure.
(c) This
(d) Except as provided in subparagraph (C) of
paragraph (1) of subdivision (b), this section shall not apply
to the seizure of any property as a result of a jeopardy assessment.
SEC. 12. Section 60632 of the Revenue
and Taxation Code is amended to read:
60632. (a) The board shall release any levy or notice to withhold
issued pursuant to this part on any property in the event the
expense of the sale process exceeds the liability for which the levy
is made.
(b) (1) (A) The
Taxpayers' Rights Advocate may order the release of any levy or
notice to withhold issued pursuant to this part, or within 90 days
from the receipt of the funds pursuant to a levy or notice to
withhold may order the return of any amount up to one
two thousand five three
hundred dollars ($1,500) ($2,300)
of moneys received, 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 or dependents.
(B) The amount the Taxpayers' Rights Advocate may release or
return to each taxpayer subject to a levy or notice to withhold, is
limited to two thousand three hundred dollars ($2,300), or the
adjusted amount as specified in paragraph (2), in any monthly period.
(C) Notwithstanding subdivision (d), the Taxpayers' Rights
Advocate may order amounts returned in the case of a seizure of
property as a result of a jeopardy assessment, subject to the amounts
set or adjusted pursuant to this section.
(2) (A) The board shall adjust the
two-thousand-three-hundred-dollar ($2,300) amount specified in
paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year
thereafter, the board shall multiply the amount applicable for the
current fiscal year by the inflation factor adjustment calculated
based on the percentage change in the Consumer Price Index, as
recorded by the California Department of Industrial Relations for the
most recent year available, and the formula set forth in paragraph
(2) of subdivision (h) of Section 17041. The resulting amount will be
the applicable amount for the succeeding fiscal year only when the
applicable amount computed is equal to or exceeds a new operative
threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative
threshold specified in subparagraph (B), the resulting applicable
amount, rounded to the nearest multiple of one hundred dollars
($100), shall be operative for purposes of paragraph (1) beginning
July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, "operative threshold" means an
amount that exceeds by at least one hundred dollars ($100) the
greater of either the amount specified in paragraph (1) or the amount
computed pursuant to subparagraph (A) as the operative adjustment to
the amount specified in paragraph (1).
(c) The board shall not sell any seized property until it has
first notified the taxpayer in writing of the exemptions from levy
under Chapter 4 (commencing with Section 703.010) of Title 9 of the
Code of Civil Procedure.
(d) This Except as provided in
subparagraph (C) of paragraph (1) of subdivision (b), this
section shall not apply to the seizure of any property as a result of
a jeopardy assessment.
SECTION 1. Section 6002 of the Revenue and
Taxation Code is amended to read:
6002. Unless the context otherwise requires, the definitions
given in this chapter govern the construction of this part.