Amended in Assembly April 1, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2249

Introduced by Assembly Member Bloom

February 21, 2014

begin deleteAn act to amend Section 55040 of the Revenue and Taxation Code, relating to taxation. end deletebegin insertAn 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.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2249, as amended, Bloom. ~~begin deleteFee Collection Procedures Law. end delete~~begin insertTax administration: Taxpayers’ Rights Advocate: levy or notice to withhold: return of funds.end insert

begin insert

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.

end insertbegin insert

This bill would increase the amount the Taxpayers’ Rights Advocate is authorized to order returned to $2,300, and would authorize this amount to be adjusted for inflation, as provided.

end insertbegin insert

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.

end insertbegin insert

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, 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.

end insertbegin delete
The Fee Collection Procedures Law provides procedures for the collection of certain fees and surcharges by the State Board of Equalization. That law requires a feepayer to file a return in the form as prescribed by the board, which may include electronic media, and requires the form to be authenticated as specified.
end deletebegin delete
This bill would make technical, nonsubstantive changes to those requirements.
end delete

Vote: majority. Appropriation: no. Fiscal committee: ~~begin deleteno end delete~~begin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2 1begin insert

begin insertSECTION 1.end insert

end insert

begin insertSection 7094 of the end insertbegin insertRevenue and Taxation Codeend insert
2begin insert is amended to read:end insert

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) begin insert(1)end insertbegin insert end insertThe Taxpayers’ Rights Advocate may order the release
8of any levy or notice to withhold issued pursuant to this part or,
9within 90 days from the receipt of funds pursuant to a levy or
10notice to withhold, order the return of any amount up to~~begin delete oneend delete~~begin insert twoend insert
11 thousand~~begin delete fiveend delete~~begin insert threeend insert hundred dollars~~begin delete ($1,500)end delete~~begin insert ($2,300)end insert of moneys
12received, upon his or her finding that the levy or notice to withhold
13threatens the health or welfare of the taxpayer or his or her spouse
14and dependents or family.

begin insert

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

end insertbegin insert

(A) On or before March 1, 2015, 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 (C).

end insertbegin insert

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

end insertbegin insert

(C) 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 subparagraphs (A) and (B) as the operative adjustment to the amount specified in paragraph (1).

end insert

(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 section shall not apply to the seizure of any property as a result of a jeopardy assessment.

P3 32begin insert

begin insertSEC. 2.end insert

end insert

begin insertSection 9272 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
33amended to read:end insert

9272.

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

38(b) begin insert(1)end insertbegin insert end insertThe Taxpayers’ Rights Advocate may order the release
39of any levy or notice to withhold issued pursuant to this part or,
40within 90 days from the receipt of funds pursuant to a levy or
P4 1notice to withhold, order the return of any amount up to~~begin delete oneend delete~~begin insert twoend insert
2 thousand~~begin delete fiveend delete~~begin insert threeend insert hundred dollars~~begin delete ($1,500)end delete~~begin insert ($2,300)end insert of moneys
3received, upon his or her finding that the levy or notice to withhold
4threatens the health or welfare of the taxpayer or his or her spouse
5and dependents or family.

begin insert

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

end insertbegin insert

end insert

(d) This section shall not apply to the seizure of any property as a result of a jeopardy assessment.

37begin insert

begin insertSEC. 3.end insert

end insert

begin insertSection 30459.2 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
38amended to read:end insert

30459.2.

(a) The board shall release any levy or notice to
40withhold issued pursuant to this part on any property in the event
P5 1begin insert that the expenseend insert of~~begin delete any of the following:end delete~~begin insert the sale process exceeds
2the liability for which the levy is made.end insert

begin delete
3(1) The expense of the sale process exceeds the liability for
4which the levy is made.
end delete~~begin delete end delete~~begin delete
5(2) The
end delete

6begin insert(b)end insertbegin insert end insertbegin insert(1)end insertbegin insert end insertbegin insertTheend insert Taxpayers’ Rights Advocate~~begin delete ordersend delete~~begin insert may orderend insert the
7release of~~begin delete theend delete~~begin insert anyend insert levy or notice to withholdbegin insert issued pursuant to
8this part or, within 90 days from the receipt of funds pursuant to
9a levy or notice to withhold, order the return of any amount up to
10two thousand three hundred dollars ($2,300) of moneys received,end insert
11 upon his or her finding that the levy or notice to withhold threatens
12the health or welfare of the taxpayer or his or her spouse and
13dependents or family.

begin insert

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

end insertbegin insert

end insertbegin delete
(b)
end delete

begin insert(c)end insert 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.

begin delete
(c)
end delete

begin insert(d)end insert This section shall not apply to the seizure of any property as a result of a jeopardy assessment.

P6 8begin insert

begin insertSEC. 4.end insert

end insert

begin insertSection 32472 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
9amended to read:end insert

32472.

(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) begin insert(1)end insertbegin insert end insert The Taxpayers’ Rights Advocate may order the release
15of any levy or notice to withhold issued pursuant to this part or,
16within 90 days from the receipt of funds pursuant to a levy or
17notice to withhold, order the return of any amount up to~~begin delete oneend delete~~begin insert twoend insert
18 thousand~~begin delete fiveend delete~~begin insert threeend insert hundred dollars~~begin delete ($1,500)end delete~~begin insert ($2,300)end insert of moneys
19received, upon his or her finding that the levy or notice to withhold
20threatens the health or welfare of the taxpayer or his or her spouse
21and dependents or family.

begin insert

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

end insertbegin insert

end insert

(d) This section shall not apply to the seizure of any property as a result of a jeopardy assessment.

P7 13begin insert

begin insertSEC. 5.end insert

end insert

begin insertSection 40212 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
14amended to read:end insert

40212.

(a) The board shall release any levy or notice to
16withhold issued pursuant to this part on any property in the event
17that the expense of the sale process exceeds the liability for which
18the levy is made.

19(b) begin insert(1)end insertbegin insert end insert The Taxpayers’ Rights Advocate may order the release
20of any levy or notice to withhold issued pursuant to this part or,
21within 90 days from the receipt of funds pursuant to a levy or
22notice to withhold, order the return of any amount up to~~begin delete oneend delete~~begin insert twoend insert
23 thousand~~begin delete fiveend delete~~begin insert threeend insert hundred dollars~~begin delete ($1,500)end delete~~begin insert ($2,300)end insert of moneys
24received, upon his or her finding that the levy or notice to withhold
25threatens the health or welfare of the taxpayer or his or her spouse
26and dependents or family.

begin insert

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

end insertbegin insert

end insert

(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 section shall not apply to the seizure of any property as a result of a jeopardy assessment.

P8 18begin insert

begin insertSEC. 6.end insert

end insert

begin insertSection 41172 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
19amended to read:end insert

41172.

(a) The board shall release any levy or notice to
21withhold issued pursuant to this part on any property in the event
22that the expense of the sale process exceeds the liability for which
23the levy is made.

24(b) begin insert(1)end insertbegin insert end insert The Taxpayers’ Rights Advocate may order the release
25of any levy or notice to withhold issued pursuant to this part or,
26within 90 days from the receipt of funds pursuant to a levy or
27notice to withhold, order the return of any amount up to~~begin delete oneend delete~~begin insert twoend insert
28 thousand~~begin delete fiveend delete~~begin insert threeend insert hundred dollars~~begin delete ($1,500)end delete~~begin insert ($2,300)end insert of moneys
29received, upon his or her finding that the levy or notice to withhold
30threatens the health or welfare of the taxpayer or his or her spouse
31and dependents or family.

begin insert

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

end insertbegin insert

end insert

(d) This section shall not apply to the seizure of any property as a result of a jeopardy assessment.

P9 23begin insert

begin insertSEC. 7.end insert

end insert

begin insertSection 43523 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
24amended to read:end insert

43523.

(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) begin insert(1)end insertbegin insert end insert The Taxpayers’ Rights Advocate may order the release
30of any levy or notice to withhold issued pursuant to this part or,
31within 90 days from the receipt of funds pursuant to a levy or
32notice to withhold, order the return of any amount up to~~begin delete oneend delete~~begin insert twoend insert
33 thousand~~begin delete fiveend delete~~begin insert threeend insert hundred dollars~~begin delete ($1,500)end delete~~begin insert ($2,300)end insert of moneys
34received, upon his or her finding that the levy or notice to withhold
35threatens the health or welfare of the taxpayer or his or her spouse
36and dependents or family.

begin insert

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

end insertbegin insert

end insert

(d) This section shall not apply to the seizure of any property as a result of a jeopardy assessment.

P10 29begin insert

begin insertSEC. 8.end insert

end insert

begin insertSection 45868 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
30amended to read:end insert

45868.

(a) The board shall release any levy or notice to
32withhold issued pursuant to this part on any property in the event
33that the expense of the sale process exceeds the liability for which
34the levy is made.

35(b) begin insert(1)end insertbegin insert end insert The Taxpayers’ Rights Advocate may order the release
36of any levy or notice to withhold issued pursuant to this part or,
37within 90 days from the receipt of funds pursuant to a levy or
38notice to withhold, order the return of any amount up to~~begin delete oneend delete~~begin insert twoend insert
39 thousand~~begin delete fiveend delete~~begin insert threeend insert hundred dollars~~begin delete ($1,500)end delete~~begin insert ($2,300)end insert of moneys
40received, upon his or her finding that the levy or notice to withhold
P11 1threatens the health or welfare of the feepayer or his or her spouse
2and dependents or family.

begin insert

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

end insertbegin insert

end insert

(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 section shall not apply to the seizure of any property as a result of a jeopardy assessment.

34begin insert

begin insertSEC. 9.end insert

end insert

begin insertSection 46623 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
35amended to read:end insert

46623.

(a) The board shall release any levy or notice to
37withhold issued pursuant to this part on any property in the event
38the expense of the sale process exceeds the liability for which the
39levy is made.

P12 1(b) begin insert(1)end insertbegin insert end insert The Taxpayers’ Rights Advocate may order the release
2of any levy or notice to withhold issued pursuant to this part or,
3within 90 days from the receipt of the funds pursuant to a levy or
4the notice to withhold, may order the return of any amount up to
5~~begin delete oneend delete~~begin insert twoend insert thousand~~begin delete fiveend delete~~begin insert threeend insert hundred dollars~~begin delete ($1,500)end delete~~begin insert ($2,300)end insert of
6moneys received, upon his or her finding that the levy or notice
7to withhold threatens the health or welfare of the feepayer or his
8or her spouse and dependents.

begin insert

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

end insertbegin insert

end insert

(d) This section shall not apply to the seizure of any property as a result of a jeopardy assessment.

P13 1begin insert

begin insertSEC. 10.end insert

end insert

begin insertSection 50156.12 of the end insertbegin insertRevenue and Taxation Codeend insert
2begin insert is amended to read:end insert

50156.12.

(a) The board shall release any levy or notice to
4withhold issued pursuant to this part on any property in the event
5that the expense of the sale process exceeds the liability for which
6the levy is made.

7(b) begin insert(1)end insertbegin insert end insert The Taxpayers’ Rights Advocate may order the release
8of any levy or notice to withhold issued pursuant to this part or,
9within 90 days from the receipt of funds pursuant to a levy or
10notice to withhold, order the return of any amount up to~~begin delete oneend delete~~begin insert twoend insert
11 thousand~~begin delete fiveend delete~~begin insert threeend insert hundred dollars~~begin delete ($1,500)end delete~~begin insert ($2,300)end insert of moneys
12received, upon his or her finding that the levy or notice to withhold
13threatens the health or welfare of the feepayer or his or her spouse
14and dependents or family.

begin insert

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

end insertbegin insert

end insert

(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 section shall not apply to the seizure of any property as a result of a jeopardy assessment.

P14 7begin insert

begin insertSEC. 11.end insert

end insert

begin insertSection 55333 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
8amended to read:end insert

55333.

(a) The board shall release any levy or notice to
10withhold issued pursuant to this part on any property in the event
11begin insert that the expenseend insert of~~begin delete any ofend delete~~ the~~begin delete following:end delete~~begin insert sale process exceeds the
12liability for which the levy is made.end insert

begin delete
13(1) The expense of the sale process exceeds the liability for
14which the levy is made.
end delete~~begin delete end delete~~begin delete
15(2) The
end delete

16begin insert(b)end insertbegin insert end insertbegin insert(1)end insertbegin insert end insertbegin insertTheend insert Taxpayers’ Rights Advocate~~begin delete ordersend delete~~begin insert may orderend insert the
17release of~~begin delete theend delete~~begin insert anyend insert levy or notice to withhold upon his or her finding
18that the levy or notice to withholdbegin insert issued pursuant to this part or,
19within 90 days from the receipt of funds pursuant to a levy or notice
20to withhold, order the return of any amount up to two thousand
21three hundred dollars ($2,300) of moneys received,end insert threatens the
22health or welfare of the taxpayer or his or her spouse and
23dependents or family.

begin insert

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

end insertbegin insert

end insertbegin delete
(b)
end delete

begin delete
(c)
end delete

begin insert(d)end insert This section shall not apply to the seizure of any property as a result of a jeopardy assessment.

P15 17begin insert

begin insertSEC. 12.end insert

end insert

begin insertSection 60632 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
18amended to read:end insert

60632.

(a) The board shall release any levy or notice to
20withhold issued pursuant to this part on any property in the event
21the expense of the sale process exceeds the liability for which the
22levy is made.

23(b) begin insert(1)end insertbegin insert end insert The Taxpayers’ Rights Advocate may order the release
24of any levy or notice to withhold issued pursuant to this part, or
25within 90 days from the receipt of the funds pursuant to a levy or
26notice to withhold may order the return of any amount up to~~begin delete oneend delete~~
27begin insert twoend insert thousand~~begin delete fiveend delete~~begin insert threeend insert hundred dollars~~begin delete ($1,500)end delete~~begin insert ($2,300)end insert of
28moneys received, upon his or her finding that the levy or notice
29to withhold threatens the health or welfare of the taxpayer or his
30or her spouse or dependents.

begin insert

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

end insertbegin insert

end insert

(d) This section shall not apply to the seizure of any property as a result of a jeopardy assessment.

begin delete
SECTION 1.

Section 55040 of the Revenue and Taxation Code is amended to read:

55040.

A feepayer shall file a return in the form as prescribed by the board, which may include, but not be limited to, electronic media. Returns shall be authenticated in a form or pursuant to methods the board may prescribe.

end delete