BILL ANALYSIS �
AB 1222
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Date of Hearing: May 1, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1222 (Bloom) - As Introduced: February 22, 2013
Policy Committee: Revenue and
Taxation Vote: 8-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill increases the amount of money the Taxpayers' Rights
Advocate (TRA) of the Board of Equalization may order returned
to a taxpayer, including fee-payers, upon a finding the amount
of money owed to the state threatens the health or welfare of
the taxpayer or the taxpayer's family. Specifically, this bill:
1)Increases, from $1,500 to $2,300, the amount of money the TRA
may order returned to a taxpayer under specified tax and fee
programs, including the sales and use tax.
2)Extends the TRA's authority to return money to taxpayers under
the Cigarette and Tobacco Products Tax Law and the Fee
Collection Procedures Law.
3)Provides the State Board of Equalization (BOE) shall make an
annual inflation adjustment, as specified, to the maximum
amount that can be returned to taxpayers.
FISCAL EFFECT
The BOE estimates this bill will reduce state revenues by a
small amount, less than $5,000 annually. This bill will have a
negligible effect on BOE's administrative costs.
COMMENTS
1)Purpose . The author states when many Californians are
struggling to make ends meet, it is essential that the BOE
have tools to protect taxpayers while still ensuring their
AB 1222
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taxes are paid in full. BOE is sponsoring this bill to update
the amount of temporary relief taxpayers may receive when the
amount of money owed the state threatens their health and
welfare or the health and welfare of their family. The return
of funds does not reduce the tax liability, but instead
provides a means for taxpayers to meet their basic needs once
their bank accounts have had a levy placed on them, making the
funds unavailable to taxpayers.
The author notes the amount that can be returned has not been
increased since 1995. According to the author, increasing the
amount the TRA may return from $1,500 to $2,300 accounts for
inflation, and provides a mechanism to ensure the amount keeps
pace with the cost of living.
2)The BOE contends it is important to adjust for inflation the
amount of temporary assistance taxpayers may receive when the
taxpayer or their family's health or welfare is threatened.
In addition, BOE notes the bill provides the TRA consistent
return authority for all tax and fee programs administered by
the BOE.
3)Background . The TRA helps resolve taxpayer complaints,
including complaints alleging unsatisfactory treatment by BOE
employees. The TRA can order the release of a taxpayers funds
when the health or welfare of the taxpayer or the taxpayer's
family is threatened. The $1,500 ceiling was set in 1995.
4)There is no registered opposition to this bill.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081