Amended in Assembly April 29, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1277


Introduced by Assembly Member Brough

(Coauthor: Assembly Member Holden)

February 27, 2015


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. 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 jeopardybegin delete assessmentend deletebegin insert determinationend insert, 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 jeopardybegin delete assessmentend deletebegin insert determinationend insert, as specified.

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) (1) (A) The Taxpayers’ Rights Advocate may order the
8release of any levy or notice to withhold issued pursuant to this
P3    1part or, within 90 days from the receipt of funds pursuant to a levy
2or notice to withhold, order the return of any amount up to two
3thousand three hundred dollars ($2,300) of moneys received, upon
4his or her finding that the levy or notice to withhold threatens the
5health or welfare of the taxpayer or his or her spouse and
6dependents or family.

7(B) The amount the Taxpayers’ Rights Advocate may release
8or return to each taxpayer subject to a levy or notice to withhold,
9is limited to two thousand three hundred dollars ($2,300), or the
10adjusted amount as specified in paragraph (2), in any monthly
11period.

12(C) begin deleteNotwithstanding subdivision (d), the end deletebegin insertTheend insertbegin insert end insertTaxpayers’ Rights
13Advocate may order amounts returned in the case of a seizure of
14property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert, subject
15to the amounts set or adjusted pursuant to this sectionbegin insert and if the
16ultimate collection of the amount due is no longer in jeopardyend insert
.

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

20(i) On or before March 1, 2016, and on or before March 1 each
21year thereafter, the board shall multiply the amount applicable for
22the current fiscal year by the inflation factor adjustment calculated
23based on the percentage change in the Consumer Price Index, as
24recorded by the California Department of Industrial Relations for
25the most recent year available, and the formula set forth in
26paragraph (2) of subdivision (h) of Section 17041. The resulting
27amount will be the applicable amount for the succeeding fiscal
28year only when the applicable amount computed is equal to or
29exceeds a new operative threshold, as defined in subparagraph
30(B).

31(ii) When the applicable amount equals or exceeds an operative
32threshold specified in subparagraph (B), 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.

36(B) For purposes of this paragraph, “operative threshold” means
37an amount that exceeds by at least one hundred dollars ($100) the
38greater of either the amount specified in paragraph (1) or the
39 amount computed pursuant to subparagraph (A) as the operative
40adjustment to the amount specified in paragraph (1).

P4    1(c) The board shall not sell any seized property until it has first
2notified the taxpayer in writing of the exemptions from levy under
3Chapter 4 (commencing with Section 703.010) of Title 9 of the
4Code of Civil Procedure.

5(d) Except as provided in subparagraph (C) of paragraph (1) of
6subdivision (b), this section shall not apply to the seizure of any
7property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert.

8

SEC. 2.  

Section 9272 of the Revenue and Taxation Code is
9amended to read:

10

9272.  

(a) The board shall release any levy or notice to withhold
11issued pursuant to this part on any property in the event that the
12expense of the sale process exceeds the liability for which the levy
13is made.

14(b) (1) (A) The Taxpayers’ Rights Advocate may order the
15release of any levy or notice to withhold issued pursuant to this
16part or, within 90 days from the receipt of funds pursuant to a levy
17or notice to withhold, order the return of any amount up to two
18thousand three hundred dollars ($2,300) of moneys received, upon
19his or her finding that the levy or notice to withhold threatens the
20health or welfare of the taxpayer or his or her spouse and
21dependents or family.

22(B) The amount the Taxpayers’ Rights Advocate may release
23or return to each taxpayer subject to a levy or notice to withhold,
24is limited to two thousand three hundred dollars ($2,300), or the
25adjusted amount as specified in paragraph (2), in any monthly
26period.

27(C) begin deleteNotwithstanding subdivision (d), the end deletebegin insertTheend insertbegin insert end insertTaxpayers’ Rights
28Advocate may order amounts returned in the case of a seizure of
29property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert, subject
30to the amounts set or adjusted pursuant to this sectionbegin insert and if the
31ultimate collection of the amount due is no longer in jeopardyend insert
.

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

35(i) On or before March 1, 2016, and on or before March 1 each
36year thereafter, the board shall multiply the amount applicable for
37the current fiscal year by the inflation factor adjustment calculated
38based on the percentage change in the Consumer Price Index, as
39recorded by the California Department of Industrial Relations for
40the most recent year available, and the formula set forth in
P5    1paragraph (2) of subdivision (h) of Section 17041. The resulting
2amount will be the applicable amount for the succeeding fiscal
3year only when the applicable amount computed is equal to or
4exceeds a new operative threshold, as defined in subparagraph
5(B).

6(ii) When the applicable amount equals or exceeds an operative
7threshold specified in subparagraph (B), 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.

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

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

20(d) Except as provided in subparagraph (C) of paragraph (1) of
21subdivision (b), this section shall not apply to the seizure of any
22property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert.

23

SEC. 3.  

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

25

30459.2.  

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

29(b) (1) (A) The Taxpayers’ Rights Advocate may order the
30release of any levy or notice to withhold issued pursuant to this
31part or, within 90 days from the receipt of funds pursuant to a levy
32or notice to withhold, order the return of any amount up to two
33thousand three hundred dollars ($2,300) of moneys received, upon
34his or her finding that the levy or notice to withhold threatens the
35health or welfare of the taxpayer or his or her spouse and
36dependents or family.

37(B) The amount the Taxpayers’ Rights Advocate may release
38or return to each taxpayer subject to a levy or notice to withhold,
39is limited to two thousand three hundred dollars ($2,300), or the
P6    1 adjusted amount as specified in paragraph (2), in any monthly
2period.

3(C) begin deleteNotwithstanding subdivision (d), the end deletebegin insertTheend insertbegin insert end insertTaxpayers’ Rights
4Advocate may order amounts returned in the case of a seizure of
5property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert, subject
6to the amounts set or adjusted pursuant to this sectionbegin insert and if the
7ultimate collection of the amount due is no longer in jeopardyend insert
.

8(2) (A) The board shall adjust the
9two-thousand-three-hundred-dollar ($2,300) amount specified in
10paragraph (1) as follows:

11(i) On or before March 1, 2016, and on or before March 1 each
12year thereafter, the board shall multiply the amount applicable for
13the current fiscal year by the inflation factor adjustment calculated
14based on the percentage change in the Consumer Price Index, as
15recorded by the California Department of Industrial Relations for
16the most recent year available, and the formula set forth in
17paragraph (2) of subdivision (h) of Section 17041. The resulting
18amount will be the applicable amount for the succeeding fiscal
19year only when the applicable amount computed is equal to or
20exceeds a new operative threshold, as defined in subparagraph
21(B).

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

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

32(c) The board shall not sell any seized property until it has first
33notified the taxpayer in writing of the exemptions from levy under
34Chapter 4 (commencing with Section 703.010) of Division 2 of
35Title 9 of Part 2 of the Code of Civil Procedure.

36(d) Except as provided in subparagraph (c) of paragraph (1) of
37subdivision (b), this section shall not apply to the seizure of any
38property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert.

39

SEC. 4.  

Section 32472 of the Revenue and Taxation Code is
40amended to read:

P7    1

32472.  

(a) The board shall release any levy or notice to
2withhold issued pursuant to this part on any property in the event
3that the expense of the sale process exceeds the liability for which
4the levy is made.

5(b) (1) (A) The Taxpayers’ Rights Advocate may order the
6release of any levy or notice to withhold issued pursuant to this
7part or, within 90 days from the receipt of funds pursuant to a levy
8or notice to withhold, order the return of any amount up to two
9thousand three hundred dollars ($2,300) of moneys received, upon
10his or her finding that the levy or notice to withhold threatens the
11health or welfare of the taxpayer or his or her spouse and
12dependents or family.

13(B) The amount the Taxpayers’ Rights Advocate may release
14or return to each taxpayer subject to a levy or notice to withhold,
15is limited to two thousand three hundred dollars ($2,300), or the
16adjusted amount as specified in paragraph (2), in any monthly
17period.

18(C) begin deleteNotwithstanding subdivision (d), the end deletebegin insertTheend insertbegin insert end insertTaxpayers’ Rights
19Advocate may order amounts returned in the case of a seizure of
20property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert, subject
21to the amounts set or adjusted pursuant to this sectionbegin insert and if the
22ultimate collection of the amount due is no longer in jeopardyend insert
.

23(2) (A) The board shall adjust the
24two-thousand-three-hundred-dollar ($2,300) amount specified in
25paragraph (1) as follows:

26(i) On or before March 1, 2016, and on or before March 1 each
27year thereafter, the board shall multiply the amount applicable for
28the current fiscal year by the inflation factor adjustment calculated
29based on the percentage change in the Consumer Price Index, as
30recorded by the California Department of Industrial Relations for
31the most recent year available, and the formula set forth in
32paragraph (2) of subdivision (h) of Section 17041. The resulting
33amount will be the applicable amount for the succeeding fiscal
34year only when the applicable amount computed is equal to or
35exceeds a new operative threshold, as defined in subparagraph
36(B).

37(ii) When the applicable amount equals or exceeds an operative
38threshold specified in subparagraph (B), the resulting applicable
39amount, rounded to the nearest multiple of one hundred dollars
P8    1($100), shall be operative for purposes of paragraph (1) beginning
2July 1 of the succeeding fiscal year.

3(B) For purposes of this paragraph, “operative threshold” means
4an amount that exceeds by at least one hundred dollars ($100) the
5greater of either the amount specified in paragraph (1) or the
6amount computed pursuant to subparagraph (A) as the operative
7adjustment to the amount specified in paragraph (1).

8(c) The board shall not sell any seized property until it has first
9notified the taxpayer in writing of the exemptions from levy under
10Chapter 4 (commencing with Section 703.010) of Division 2 of
11Title 9 of Part 2 of the Code of Civil Procedure.

12(d) Except as provided in subparagraph (C) of paragraph (1) of
13subdivision (b), this section shall not apply to the seizure of any
14property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert.

15

SEC. 5.  

Section 40212 of the Revenue and Taxation Code is
16amended to read:

17

40212.  

(a) The board shall release any levy or notice to
18withhold issued pursuant to this part on any property in the event
19that the expense of the sale process exceeds the liability for which
20the levy is made.

21(b) (1) (A) The Taxpayers’ Rights Advocate may order the
22release of any levy or notice to withhold issued pursuant to this
23part or, within 90 days from the receipt of funds pursuant to a levy
24or notice to withhold, order the return of any amount up to two
25thousand three hundred dollars ($2,300) of moneys received, upon
26his or her finding that the levy or notice to withhold threatens the
27health or welfare of the taxpayer or his or her spouse and
28dependents or family.

29(B) The amount the Taxpayers’ Rights Advocate may release
30or return to each taxpayer subject to a levy or notice to withhold,
31is limited to two thousand three hundred dollars ($2,300), or the
32adjusted amount as specified in paragraph (2), in any monthly
33period.

34(C) begin deleteNotwithstanding subdivision (d), the end deletebegin insertTheend insertbegin insert end insertTaxpayers’ Rights
35Advocate may order amounts returned in the case of a seizure of
36property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert, subject
37to the amounts set or adjusted pursuant to this sectionbegin insert end insertbegin insertand if the
38ultimate collection of the amount due is no longer in jeopardyend insert
.

P9    1(2) (A) The board shall adjust the
2two-thousand-three-hundred-dollar ($2,300) amount specified in
3paragraph (1) as follows:

4(i) On or before March 1, 2016, and on or before March 1 each
5year thereafter, the board shall multiply the amount applicable for
6the current fiscal year by the inflation factor adjustment calculated
7based on the percentage change in the Consumer Price Index, as
8 recorded by the California Department of Industrial Relations for
9the most recent year available, and the formula set forth in
10paragraph (2) of subdivision (h) of Section 17041. The resulting
11amount will be the applicable amount for the succeeding fiscal
12year only when the applicable amount computed is equal to or
13exceeds a new operative threshold, as defined in subparagraph
14(B).

15(ii) When the applicable amount equals or exceeds an operative
16threshold specified in subparagraph (B), 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.

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

25(c) The board shall not sell any seized property until it first has
26notified the taxpayer in writing of the exemptions from levy under
27Chapter 4 (commencing with Section 703.010) of Division 2 of
28Title 9 of Part 2 of the Code of Civil Procedure.

29(d) Except as provided in subparagraph (C) of paragraph (1) of
30subdivision (b), this section shall not apply to the seizure of any
31property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert.

32

SEC. 6.  

Section 41172 of the Revenue and Taxation Code is
33amended to read:

34

41172.  

(a) The board shall release any levy or notice to
35withhold issued pursuant to this part on any property in the event
36that the expense of the sale process exceeds the liability for which
37the levy is made.

38(b) (1) (A) The Taxpayers’ Rights Advocate may order the
39release of any levy or notice to withhold issued pursuant to this
40part or, within 90 days from the receipt of funds pursuant to a levy
P10   1or notice to withhold, order the return of any amount up to two
2thousand three hundred dollars ($2,300) of moneys received, upon
3his or her finding that the levy or notice to withhold threatens the
4health or welfare of the taxpayer or his or her spouse and
5dependents or family.

6(B) The amount the Taxpayers’ Rights Advocate may release
7or return to each taxpayer subject to a levy or notice to withhold,
8is limited to two thousand three hundred dollars ($2,300), or the
9adjusted amount as specified in paragraph (2), in any monthly
10period.

11(C) begin deleteNotwithstanding subdivision (d), the end deletebegin insertTheend insertbegin insert end insertTaxpayers’ Rights
12Advocate may order amounts returned in the case of a seizure of
13property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert, subject
14to the amounts set or adjusted pursuant to this sectionbegin insert and if the
15ultimate collection of the amount due is no longer in jeopardyend insert
.

16(2) (A) The board shall adjust the
17two-thousand-three-hundred-dollar ($2,300) amount specified in
18paragraph (1) as follows:

19(i) On or before March 1, 2016, and on or before March 1 each
20year thereafter, the board shall multiply the amount applicable for
21the current fiscal year by the inflation factor adjustment calculated
22based on the percentage change in the Consumer Price Index, as
23recorded by the California Department of Industrial Relations for
24the most recent year available, and the formula set forth in
25paragraph (2) of subdivision (h) of Section 17041. The resulting
26amount will be the applicable amount for the succeeding fiscal
27year only when the applicable amount computed is equal to or
28exceeds a new operative threshold, as defined in subparagraph
29(B).

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

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

P11   1(c) The board shall not sell any seized property until it has first
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) Except as provided in subparagraph (C) of paragraph (1) of
6subdivision (b), this section shall not apply to the seizure of any
7property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert.

8

SEC. 7.  

Section 43523 of the Revenue and Taxation Code is
9amended to read:

10

43523.  

(a) The board shall release any levy or notice to
11withhold issued pursuant to this part on any property in the event
12that the expense of the sale process exceeds the liability for which
13the levy is made.

14(b) (1) (A)  The Taxpayers’ Rights Advocate may order the
15release of any levy or notice to withhold issued pursuant to this
16part or, within 90 days from the receipt of funds pursuant to a levy
17or notice to withhold, order the return of any amount up to two
18thousand three hundred dollars ($2,300) of moneys received, upon
19his or her finding that the levy or notice to withhold threatens the
20health or welfare of the taxpayer or his or her spouse and
21dependents or family.

22(B) The amount the Taxpayers’ Rights Advocate may release
23or return to each taxpayer subject to a levy or notice to withhold,
24is limited to two thousand three hundred dollars ($2,300), or the
25adjusted amount as specified in paragraph (2), in any monthly
26period.

27(C) begin deleteNotwithstanding subdivision (d), the end deletebegin insertTheend insertbegin insert end insertTaxpayers’ Rights
28Advocate may order amounts returned in the case of a seizure of
29property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert, subject
30to the amounts set or adjusted pursuant to this sectionbegin insert end insertbegin insertand if the
31ultimate collection of the amount due is no longer in jeopardyend insert
.

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

35(i) On or before March 1, 2016, and on or before March 1 each
36year thereafter, the board shall multiply the amount applicable for
37the current fiscal year by the inflation factor adjustment calculated
38based on the percentage change in the Consumer Price Index, as
39 recorded by the California Department of Industrial Relations for
40the most recent year available, and the formula set forth in
P12   1paragraph (2) of subdivision (h) of Section 17041. The resulting
2amount will be the applicable amount for the succeeding fiscal
3year only when the applicable amount computed is equal to or
4exceeds a new operative threshold, as defined in subparagraph
5(B).

6(ii) When the applicable amount equals or exceeds an operative
7threshold specified in subparagraph (B), 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.

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

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

20(d) Except as provided in subparagraph (C) of paragraph (1) of
21subdivision (b), this section shall not apply to the seizure of any
22property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert.

23

SEC. 8.  

Section 45868 of the Revenue and Taxation Code is
24amended to read:

25

45868.  

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

29(b) (1) (A) The Taxpayers’ Rights Advocate may order the
30release of any levy or notice to withhold issued pursuant to this
31part or, within 90 days from the receipt of funds pursuant to a levy
32or notice to withhold, order the return of any amount up to two
33thousand three hundred dollars ($2,300) of moneys received, upon
34his or her finding that the levy or notice to withhold threatens the
35health or welfare of the feepayer or his or her spouse and
36dependents or family.

37(B) The amount the Taxpayers’ Rights Advocate may release
38or return to each taxpayer subject to a levy or notice to withhold,
39is limited to two thousand three hundred dollars ($2,300), or the
P13   1adjusted amount as specified in paragraph (2), in any monthly
2period.

3(C) begin deleteNotwithstanding subdivision (d), the end deletebegin insertTheend insertbegin insert end insertTaxpayers’ Rights
4Advocate may order amounts returned in the case of a seizure of
5property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert, subject
6to the amounts set or adjusted pursuant to this sectionbegin insert end insertbegin insertand if the
7ultimate collection of the amount due is no longer in jeopardyend insert
.

8(2) (A) The board shall adjust the
9two-thousand-three-hundred-dollar ($2,300) amount specified in
10paragraph (1) as follows:

11(i) On or before March 1, 2016, and on or before March 1 each
12year thereafter, the board shall multiply the amount applicable for
13the current fiscal year by the inflation factor adjustment calculated
14based on the percentage change in the Consumer Price Index, as
15 recorded by the California Department of Industrial Relations for
16the most recent year available, and the formula set forth in
17paragraph (2) of subdivision (h) of Section 17041. The resulting
18amount will be the applicable amount for the succeeding fiscal
19year only when the applicable amount computed is equal to or
20exceeds a new operative threshold, as defined in subparagraph
21(B).

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

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

32(c) The board shall not sell any seized property until it has first
33notified the feepayer in writing of the exemptions from levy under
34Chapter 4 (commencing with Section 703.010) of Division 2 of
35Title 9 of Part 2 of the Code of Civil Procedure.

36(d) Except as provided in subparagraph (C) of paragraph (1) of
37subdivision (b), this section shall not apply to the seizure of any
38property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert.

39

SEC. 9.  

Section 46623 of the Revenue and Taxation Code is
40amended to read:

P14   1

46623.  

(a) The board shall release any levy or notice to
2withhold issued pursuant to this part on any property in the event
3the expense of the sale process exceeds the liability for which the
4levy is made.

5(b) (1) (A) The Taxpayers’ Rights Advocate may order the
6release of any levy or notice to withhold issued pursuant to this
7part or, within 90 days from the receipt of the funds pursuant to a
8levy or the notice to withhold, may order the return of any amount
9up to two thousand three hundred dollars ($2,300) of moneys
10received, upon his or her finding that the levy or notice to withhold
11threatens the health or welfare of the feepayer or his or her spouse
12and dependents.

13(B) The amount the Taxpayers’ Rights Advocate may release
14or return to each taxpayer subject to a levy or notice to withhold,
15is limited to two thousand three hundred dollars ($2,300), or the
16adjusted amount as specified in paragraph (2), in any monthly
17period.

18(C) begin deleteNotwithstanding subdivision (d), the end deletebegin insertTheend insertbegin insert end insertTaxpayers’ Rights
19Advocate may order amounts returned in the case of a seizure of
20property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert, subject
21to the amounts set or adjusted pursuant to this sectionbegin insert end insertbegin insertand if the
22ultimate collection of the amount due is no longer in jeopardyend insert
.

23(2) (A) The board shall adjust the
24two-thousand-three-hundred-dollar ($2,300) amount specified in
25paragraph (1) as follows:

26(i) On or before March 1, 2016, and on or before March 1 each
27year thereafter, the board shall multiply the amount applicable for
28the current fiscal year by the inflation factor adjustment calculated
29based on the percentage change in the Consumer Price Index, as
30 recorded by the California Department of Industrial Relations for
31the most recent year available, and the formula set forth in
32paragraph (2) of subdivision (h) of Section 17041. The resulting
33amount will be the applicable amount for the succeeding fiscal
34year only when the applicable amount computed is equal to or
35exceeds a new operative threshold, as defined in subparagraph
36(B).

37(ii) When the applicable amount equals or exceeds an operative
38threshold specified in subparagraph (B), the resulting applicable
39amount, rounded to the nearest multiple of one hundred dollars
P15   1($100), shall be operative for purposes of paragraph (1) beginning
2July 1 of the succeeding fiscal year.

3(B) For purposes of this paragraph, “operative threshold” means
4an amount that exceeds by at least one hundred dollars ($100) the
5greater of either the amount specified in paragraph (1) or the
6amount computed pursuant to subparagraph (A) as the operative
7adjustment to the amount specified in paragraph (1).

8(c) The board shall not sell any seized property until it has first
9notified the taxpayer in writing of the exemptions from levy under
10Chapter 4 (commencing with Section 703.010) of Division 2 of
11Title 9 of Part 2 of the Code of Civil Procedure.

12(d) Except as provided in subparagraph (C) of paragraph (1) of
13subdivision (b), this section shall not apply to the seizure of any
14property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert.

15

SEC. 10.  

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

17

50156.12.  

(a) The board shall release any levy or notice to
18withhold issued pursuant to this part on any property in the event
19that the expense of the sale process exceeds the liability for which
20the levy is made.

21(b) (1) (A) The Taxpayers’ Rights Advocate may order the
22release of any levy or notice to withhold issued pursuant to this
23part or, within 90 days from the receipt of funds pursuant to a levy
24or notice to withhold, order the return of any amount up to two
25thousand three hundred dollars ($2,300) of moneys received, upon
26his or her finding that the levy or notice to withhold threatens the
27health or welfare of the feepayer or his or her spouse and
28dependents or family.

29(B) The amount the Taxpayers’ Rights Advocate may release
30or return to each taxpayer subject to a levy or notice to withhold,
31is limited to two thousand three hundred dollars ($2,300), or the
32adjusted amount as specified in paragraph (2), in any monthly
33period.

34(C) begin deleteNotwithstanding subdivision (d), the end deletebegin insertTheend insertbegin insert end insertTaxpayers’ Rights
35Advocate may order amounts returned in the case of a seizure of
36property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert, subject
37to the amounts set or adjusted pursuant to this sectionbegin insert end insertbegin insertand if the
38ultimate collection of the amount due is no longer in jeopardyend insert
.

P16   1(2) (A) The board shall adjust the
2two-thousand-three-hundred-dollar ($2,300) amount specified in
3paragraph (1) as follows:

4(i) On or before March 1, 2016, and on or before March 1 each
5year thereafter, the board shall multiply the amount applicable for
6the current fiscal year by the inflation factor adjustment calculated
7based on the percentage change in the Consumer Price Index, as
8recorded by the California Department of Industrial Relations for
9the most recent year available, and the formula set forth in
10paragraph (2) of subdivision (h) of Section 17041. The resulting
11amount will be the applicable amount for the succeeding fiscal
12year only when the applicable amount computed is equal to or
13exceeds a new operative threshold, as defined in subparagraph
14(B).

15(ii) When the applicable amount equals or exceeds an operative
16threshold specified in subparagraph (B), 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.

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

25(c) The board shall not sell any seized property until it has first
26notified the fee payer in writing of the exemptions from levy under
27Chapter 4 (commencing with Section 703.010) of Division 2 of
28Title 9 of Part 2 of the Code of Civil Procedure.

29(d) Except as provided in subparagraph (C) of paragraph (1) of
30subdivision (b), this section shall not apply to the seizure of any
31property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert.

32

SEC. 11.  

Section 55333 of the Revenue and Taxation Code is
33amended to read:

34

55333.  

(a) The board shall release any levy or notice to
35withhold issued pursuant to this part on any property in the event
36that the expense of the sale process exceeds the liability for which
37the levy is made.

38(b) (1) (A) The Taxpayers’ Rights Advocate may order the
39release of any levy or notice to withhold upon his or her finding
40that the levy or notice to withhold issued pursuant to this part or,
P17   1within 90 days from the receipt of funds pursuant to a levy or
2notice to withhold, order the return of any amount up to two
3thousand three hundred dollars ($2,300) of moneys received,
4threatens the health or welfare of the taxpayer or his or her spouse
5and dependents or family.

6(B) The amount the Taxpayers’ Rights Advocate may release
7or return to each taxpayer subject to a levy or notice to withhold,
8is limited to two thousand three hundred dollars ($2,300), or the
9 adjusted amount as specified in paragraph (2), in any monthly
10period.

11(C) begin deleteNotwithstanding subdivision (d), the end deletebegin insertTheend insertbegin insert end insertTaxpayers’ Rights
12Advocate may order amounts returned in the case of a seizure of
13property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert, subject
14to the amounts set or adjusted pursuant to this sectionbegin insert end insertbegin insertand if the
15ultimate collection of the amount due is no longer in jeopardyend insert
.

16(2) (A) The board shall adjust the
17two-thousand-three-hundred-dollar ($2,300) amount specified in
18paragraph (1) as follows:

19(i) On or before March 1, 2016, and on or before March 1 each
20year thereafter, the board shall multiply the amount applicable for
21the current fiscal year by the inflation factor adjustment calculated
22based on the percentage change in the Consumer Price Index, as
23recorded by the California Department of Industrial Relations for
24the most recent year available, and the formula set forth in
25paragraph (2) of subdivision (h) of Section 17041. The resulting
26amount will be the applicable amount for the succeeding fiscal
27year only when the applicable amount computed is equal to or
28exceeds a new operative threshold, as defined in subparagraph
29(B).

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

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

P18   1(c) The board shall not sell any seized property until it has first
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) Except as provided in subparagraph (C) of paragraph (1) of
6subdivision (b), this section shall not apply to the seizure of any
7property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert.

8

SEC. 12.  

Section 60632 of the Revenue and Taxation Code is
9amended to read:

10

60632.  

(a) The board shall release any levy or notice to
11withhold issued pursuant to this part on any property in the event
12the expense of the sale process exceeds the liability for which the
13levy is made.

14(b) (1) (A) The Taxpayers’ Rights Advocate may order the
15release of any levy or notice to withhold issued pursuant to this
16part, or within 90 days from the receipt of the funds pursuant to a
17levy or notice to withhold may order the return of any amount up
18to two thousand three hundred dollars ($2,300) of moneys received,
19upon his or her finding that the levy or notice to withhold threatens
20the health or welfare of the taxpayer or his or her spouse or
21dependents.

22(B) The amount the Taxpayers’ Rights Advocate may release
23or return to each taxpayer subject to a levy or notice to withhold,
24is limited to two thousand three hundred dollars ($2,300), or the
25adjusted amount as specified in paragraph (2), in any monthly
26period.

27(C) begin deleteNotwithstanding subdivision (d), the end deletebegin insertTheend insertbegin insert end insertTaxpayers’ Rights
28Advocate may order amounts returned in the case of a seizure of
29property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert, subject
30to the amounts set or adjusted pursuant to this sectionbegin insert end insertbegin insertand if the
31ultimate collection of the amount due is no longer in jeopardyend insert
.

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

35(i) On or before March 1, 2016, and on or before March 1 each
36year thereafter, the board shall multiply the amount applicable for
37the current fiscal year by the inflation factor adjustment calculated
38based on the percentage change in the Consumer Price Index, as
39 recorded by the California Department of Industrial Relations for
40the most recent year available, and the formula set forth in
P19   1paragraph (2) of subdivision (h) of Section 17041. The resulting
2amount will be the applicable amount for the succeeding fiscal
3year only when the applicable amount computed is equal to or
4exceeds a new operative threshold, as defined in subparagraph
5(B).

6(ii) When the applicable amount equals or exceeds an operative
7threshold specified in subparagraph (B), 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.

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

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

20(d) Except as provided in subparagraph (C) of paragraph (1) of
21subdivision (b), this section shall not apply to the seizure of any
22property as a result of a jeopardybegin delete assessmentend deletebegin insert determinationend insert.



O

    97