Bill Text: CA AB1277 | 2015-2016 | Regular Session | Chaptered
Bill Title: Tax administration: Taxpayers' Rights Advocate: levy or notice to withhold: return of funds.
Sponsorship: Bipartisan Bill
Status: (Passed) 2015-10-11 - Chaptered by Secretary of State - Chapter 789, Statutes of 2015. [AB1277 Detail]
Download: California-2015-AB1277-Chaptered.html
BILL NUMBER: AB 1277 CHAPTERED
BILL TEXT
CHAPTER 789
FILED WITH SECRETARY OF STATE OCTOBER 11, 2015
APPROVED BY GOVERNOR OCTOBER 11, 2015
PASSED THE SENATE AUGUST 24, 2015
PASSED THE ASSEMBLY MAY 22, 2015
AMENDED IN ASSEMBLY APRIL 29, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
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, 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
jeopardy determination, 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 determination, as specified.
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 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) The Taxpayers' Rights Advocate may order amounts returned in
the case of a seizure of property as a result of a jeopardy
determination, subject to the amounts set or adjusted pursuant to
this section and if the ultimate collection of the amount due is no
longer in jeopardy.
(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) 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 determination.
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 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) The Taxpayers' Rights Advocate may order amounts returned in
the case of a seizure of property as a result of a jeopardy
determination, subject to the amounts set or adjusted pursuant to
this section and if the ultimate collection of the amount due is no
longer in jeopardy.
(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) 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 determination.
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 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 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) The Taxpayers' Rights Advocate may order amounts returned in
the case of a seizure of property as a result of a jeopardy
determination, subject to the amounts set or adjusted pursuant to
this section and if the ultimate collection of the amount due is no
longer in jeopardy.
(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) 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 determination.
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 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) The Taxpayers' Rights Advocate may order amounts returned in
the case of a seizure of property as a result of a jeopardy
determination, subject to the amounts set or adjusted pursuant to
this section and if the ultimate collection of the amount due is no
longer in jeopardy.
(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) 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 determination.
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 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) The Taxpayers' Rights Advocate may order amounts returned in
the case of a seizure of property as a result of a jeopardy
determination, subject to the amounts set or adjusted pursuant to
this section and if the ultimate collection of the amount due is no
longer in jeopardy.
(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) 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 determination.
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 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) The Taxpayers' Rights Advocate may order amounts returned in
the case of a seizure of property as a result of a jeopardy
determination, subject to the amounts set or adjusted pursuant to
this section and if the ultimate collection of the amount due is no
longer in jeopardy.
(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) 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 determination.
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 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) The Taxpayers' Rights Advocate may order amounts returned in
the case of a seizure of property as a result of a jeopardy
determination, subject to the amounts set or adjusted pursuant to
this section and if the ultimate collection of the amount due is no
longer in jeopardy.
(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) 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 determination.
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 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 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) The Taxpayers' Rights Advocate may order amounts returned in
the case of a seizure of property as a result of a jeopardy
determination, subject to the amounts set or adjusted pursuant to
this section and if the ultimate collection of the amount due is no
longer in jeopardy.
(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) 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 determination.
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 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 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) The Taxpayers' Rights Advocate may order amounts returned in
the case of a seizure of property as a result of a jeopardy
determination, subject to the amounts set or adjusted pursuant to
this section and if the ultimate collection of the amount due is no
longer in jeopardy.
(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) 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 determination.
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 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 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) The Taxpayers' Rights Advocate may order amounts returned in
the case of a seizure of property as a result of a jeopardy
determination, subject to the amounts set or adjusted pursuant to
this section and if the ultimate collection of the amount due is no
longer in jeopardy.
(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) 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 determination.
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 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 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) The Taxpayers' Rights Advocate may order amounts returned in
the case of a seizure of property as a result of a jeopardy
determination, subject to the amounts set or adjusted pursuant to
this section and if the ultimate collection of the amount due is no
longer in jeopardy.
(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) 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 determination.
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 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 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) The Taxpayers' Rights Advocate may order amounts returned in
the case of a seizure of property as a result of a jeopardy
determination, subject to the amounts set or adjusted pursuant to
this section and if the ultimate collection of the amount due is no
longer in jeopardy.
(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) 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 determination.
