BILL ANALYSIS Ó
AB 1277
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Date of Hearing: May 13, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1277 (Brough) - As Amended April 29, 2015
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|Policy |Revenue and Taxation |Vote:|7 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill increases, from $1,500 to $2,300, for a variety of
taxes administered by the Board of Equalization (BOE), the
maximum amount of levied funds the Taxpayers' Rights Advocate
may order returned to a taxpayer upon a finding that the levy or
notice to withhold threatens the health or welfare of the
taxpayer or the taxpayer's family, and requires the BOE to
adjust the maximum amount for inflation on or before March 1 of
each year, beginning March 1, 2016.
FISCAL EFFECT:
AB 1277
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Minor and absorbable administrative costs to BOE, expected
annual GF revenue losses of approximately $4,600 based on an
assumed return of funds by the Taxpayers' Rights Advocate twice
a year.
COMMENTS:
1)Purpose. According to the author, this bill provides
additional relief for taxpayers in dire financial
circumstances. AB 1277 increases the amount of levied funds
the Taxpayers' Rights Advocate may return to taxpayers in
cases where the levy threatens the health or welfare of the
taxpayer, the taxpayer's spouse, or the taxpayer's family.
The author asserts the amount has not been adjusted since the
authority was established in 1996.
The bill's sponsor, the BOE, claims the increase in the
maximum returnable amount from $1,500 to $2,300 effectively
adjusts for inflation since 1996, and the bill's inflation
adjustment provision will provide future modifications as
needed. The bill also includes levy return authority to the
remaining BOE-administered tax and fee programs.
2)Return, Not Relief. The BOE is authorized to levy funds,
including bank accounts, to collect delinquent tax due.
Occasionally, the seized taxpayer funds are essential to pay
the taxpayer's basic living expenses. Only the Taxpayers'
Rights Advocate has the authority to return funds in such
instances, and decisions are made based on documented need,
not tax owed, and returned funds do not relieve the taxpayer
of any taxes owed. While the amount returned is modest, the
author and sponsor believe a reasonable increase in the
maximum will help the amount returned keep pace with the cost
of living.
AB 1277
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Analysis Prepared by:Joel Tashjian / APPR. / (916)
319-2081