Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1277


Introduced by Assembly Member Brough

begin insert

(Coauthor: Assembly Member Holden)

end insert

February 27, 2015


begin deleteAn act to amend Section 6002 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 1277, as amended, Brough. begin deleteSales and use tax. end deletebegin 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. 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.

end insert
begin insert

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 assessment, as specified.

end insert
begin 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. 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.

end insert
begin 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 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 assessment, as specified.

end insert
begin delete

The Sales and Use Tax Law imposes a sales tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, and a use tax on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state.

end delete
begin delete

This bill would make a technical, nonsubstantive change to that law.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin 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

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
P3    1expense of the sale process exceeds the liability for which the levy
2is made.

3(b) begin insert(1)end insertbegin insertend insertbegin insert(A)end insertbegin insertend insert The Taxpayers’ Rights Advocate may order the
4release of any levy or notice to withhold issued pursuant to this
5part or, within 90 days from the receipt of funds pursuant to a levy
6or notice to withhold, order the return of any amount up tobegin delete oneend delete
7begin insert twoend insert thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of
8moneys received, upon his or her finding that the levy or notice
9to withhold threatens the health or welfare of the taxpayer or his
10or her spouse and dependents or family.

begin insert

11(B) The amount the Taxpayers’ Rights Advocate may release
12or return to each taxpayer subject to a levy or notice to withhold,
13is limited to two thousand three hundred dollars ($2,300), or the
14adjusted amount as specified in paragraph (2), in any monthly
15period.

end insert
begin insert

16(C) Notwithstanding subdivision (d), the Taxpayers’ Rights
17Advocate may order amounts returned in the case of a seizure of
18property as a result of a jeopardy assessment, subject to the
19amounts set or adjusted pursuant to this section.

end insert
begin insert

20(2) (A) The board shall adjust the
21two-thousand-three-hundred-dollar ($2,300) amount specified in
22paragraph (1) as follows:

end insert
begin insert

23(i) On or before March 1, 2016, and on or before March 1 each
24year thereafter, the board shall multiply the amount applicable
25for the current fiscal year by the inflation factor adjustment
26calculated based on the percentage change in the Consumer Price
27Index, as recorded by the California Department of Industrial
28Relations for the most recent year available, and the formula set
29forth in paragraph (2) of subdivision (h) of Section 17041. The
30resulting amount will be the applicable amount for the succeeding
31fiscal year only when the applicable amount computed is equal to
32or exceeds a new operative threshold, as defined in subparagraph
33(B).

end insert
begin insert

34(ii) When the applicable amount equals or exceeds an operative
35threshold specified in subparagraph (B), the resulting applicable
36amount, rounded to the nearest multiple of one hundred dollars
37($100), shall be operative for purposes of paragraph (1) beginning
38July 1 of the succeeding fiscal year.

end insert
begin insert

39(B) For purposes of this paragraph, “operative threshold”
40means an amount that exceeds by at least one hundred dollars
P4    1($100) the greater of either the amount specified in paragraph (1)
2or the amount computed pursuant to subparagraph (A) as the
3operative adjustment to the amount specified in paragraph (1).

end insert

4(c) The board shall not sell any seized property until it has first
5notified the taxpayer in writing of the exemptions from levy under
6Chapter 4 (commencing with Section 703.010) of Title 9 of the
7Code of Civil Procedure.

8(d) begin deleteThis end deletebegin insertExcept as provided in subparagraph (C) of paragraph
9(1) of subdivision (b), this end insert
section shall not apply to the seizure of
10any property as a result of a jeopardy assessment.

11begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 9272 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
12amended to read:end insert

13

9272.  

(a) The board shall release any levy or notice to withhold
14issued pursuant to this part on any property in the event that the
15expense of the sale process exceeds the liability for which the levy
16is made.

17(b) begin insert(1)end insertbegin insertend insertbegin insert(A)end insertbegin insertend insert The Taxpayers’ Rights Advocate may order the
18release of any levy or notice to withhold issued pursuant to this
19part or, within 90 days from the receipt of funds pursuant to a levy
20or notice to withhold, order the return of any amount up tobegin delete oneend delete
21begin insert twoend insert thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of
22moneys received, upon his or her finding that the levy or notice
23to withhold threatens the health or welfare of the taxpayer or his
24or her spouse and dependents or family.

begin insert

25(B) The amount the Taxpayers’ Rights Advocate may release
26or return to each taxpayer subject to a levy or notice to withhold,
27is limited to two thousand three hundred dollars ($2,300), or the
28adjusted amount as specified in paragraph (2), in any monthly
29period.

end insert
begin insert

30(C) Notwithstanding subdivision (d), the Taxpayers’ Rights
31Advocate may order amounts returned in the case of a seizure of
32property as a result of a jeopardy assessment, subject to the
33amounts set or adjusted pursuant to this section.

end insert
begin insert

34(2) (A) The board shall adjust the
35two-thousand-three-hundred-dollar ($2,300) amount specified in
36paragraph (1) as follows:

end insert
begin insert

37(i) On or before March 1, 2016, and on or before March 1 each
38year thereafter, the board shall multiply the amount applicable
39for the current fiscal year by the inflation factor adjustment
40calculated based on the percentage change in the Consumer Price
P5    1Index, as recorded by the California Department of Industrial
2Relations for the most recent year available, and the formula set
3forth in paragraph (2) of subdivision (h) of Section 17041. The
4resulting amount will be the applicable amount for the succeeding
5fiscal year only when the applicable amount computed is equal to
6or exceeds a new operative threshold, as defined in subparagraph
7(B).

end insert
begin insert

8(ii) When the applicable amount equals or exceeds an operative
9threshold specified in subparagraph (B), the resulting applicable
10amount, rounded to the nearest multiple of one hundred dollars
11($100), shall be operative for purposes of paragraph (1) beginning
12July 1 of the succeeding fiscal year.

end insert
begin insert

13(B) For purposes of this paragraph, “operative threshold”
14means an amount that exceeds by at least one hundred dollars
15($100) the greater of either the amount specified in paragraph (1)
16or the amount computed pursuant to subparagraph (A) as the
17operative adjustment to the amount specified in paragraph (1).

end insert

18(c) The board shall not sell any seized property until it has first
19notified the taxpayer in writing of the exemptions from levy under
20Chapter 4 (commencing with Section 703.010) of Division 2 of
21Title 9 of Part 2 of the Code of Civil Procedure.

22(d) begin deleteThis end deletebegin insertExcept as provided in subparagraph (C) of paragraph
23(1) of subdivision (b), this end insert
section shall not apply to the seizure of
24any property as a result of a jeopardy assessment.

25begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 30459.2 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
26amended to read:end insert

27

30459.2.  

(a) The board shall release any levy or notice to
28withhold issued pursuant to this part on any property in the event
29begin insert that the expenseend insert ofbegin delete any ofend delete thebegin delete following:end deletebegin insert sale process exceeds the
30liability for which the levy is made.end insert

begin delete

31(1) The expense of the sale process exceeds the liability for
32which the levy is made.

end delete
begin delete end deletebegin delete

33(2)

end delete

34begin insert(b)end insertbegin insert(1)end insertbegin insertend insertbegin insert(A)end insertbegin insertend insert The Taxpayers’ Rights Advocatebegin delete ordersend deletebegin insert may orderend insert
35 the release ofbegin delete theend deletebegin insert anyend insert levy or notice to withholdbegin insert issued pursuant
36to this part or, within 90 days from the receipt of funds pursuant
37to a levy or notice to withhold, order the return of any amount up
38to two thousand three hundred dollars ($2,300) of moneys received,end insert

39 upon his or her finding that the levy or notice to withhold threatens
P6    1the health or welfare of the taxpayer or his or her spouse and
2dependents or family.

begin insert

3(B) The amount the Taxpayers’ Rights Advocate may release
4or return to each taxpayer subject to a levy or notice to withhold,
5is limited to two thousand three hundred dollars ($2,300), or the
6 adjusted amount as specified in paragraph (2), in any monthly
7period.

end insert
begin insert

8(C) Notwithstanding subdivision (d), the Taxpayers’ Rights
9Advocate may order amounts returned in the case of a seizure of
10property as a result of a jeopardy assessment, subject to the
11amounts set or adjusted pursuant to this section.

end insert
begin insert

12(2) (A) The board shall adjust the
13two-thousand-three-hundred-dollar ($2,300) amount specified in
14paragraph (1) as follows:

end insert
begin insert

15(i) On or before March 1, 2016, and on or before March 1 each
16year thereafter, the board shall multiply the amount applicable
17for the current fiscal year by the inflation factor adjustment
18calculated based on the percentage change in the Consumer Price
19Index, as recorded by the California Department of Industrial
20Relations for the most recent year available, and the formula set
21forth in paragraph (2) of subdivision (h) of Section 17041. The
22resulting amount will be the applicable amount for the succeeding
23fiscal year only when the applicable amount computed is equal to
24or exceeds a new operative threshold, as defined in subparagraph
25(B).

end insert
begin insert

26(ii) When the applicable amount equals or exceeds an operative
27threshold specified in subparagraph (B), the resulting applicable
28amount, rounded to the nearest multiple of one hundred dollars
29($100), shall be operative for purposes of paragraph (1) beginning
30July 1 of the succeeding fiscal year.

end insert
begin insert

31(B) For purposes of this paragraph, “operative threshold”
32means an amount that exceeds by at least one hundred dollars
33($100) the greater of either the amount specified in paragraph (1)
34or the amount computed pursuant to subparagraph (A) as the
35operative adjustment to the amount specified in paragraph (1).

end insert
begin delete

36(b)

end delete

37begin insert(c)end insert The board shall not sell any seized property until it has first
38notified the taxpayer in writing of the exemptions from levy under
39Chapter 4 (commencing with Section 703.010) of Division 2 of
40Title 9 of Part 2 of the Code of Civil Procedure.

begin delete

P7    1(c)This

end delete

2begin insert(d)end insertbegin insertExcept as provided in subparagraph (c) of paragraph (1)
3of subdivision (b), this end insert
section shall not apply to the seizure of any
4property as a result of a jeopardy assessment.

5begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 32472 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
6amended to read:end insert

7

32472.  

(a) The board shall release any levy or notice to
8withhold issued pursuant to this part on any property in the event
9that the expense of the sale process exceeds the liability for which
10the levy is made.

11(b) begin insert(1)end insertbegin insertend insertbegin insert(A)end insertbegin insertend insert The Taxpayers’ Rights Advocate may order the
12release of any levy or notice to withhold issued pursuant to this
13part or, within 90 days from the receipt of funds pursuant to a levy
14or notice to withhold, order the return of any amount up tobegin delete oneend delete
15begin insert twoend insert thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of
16moneys received, upon his or her finding that the levy or notice
17to withhold threatens the health or welfare of the taxpayer or his
18or her spouse and dependents or family.

begin insert

19(B) The amount the Taxpayers’ Rights Advocate may release
20or return to each taxpayer subject to a levy or notice to withhold,
21is limited to two thousand three hundred dollars ($2,300), or the
22adjusted amount as specified in paragraph (2), in any monthly
23period.

end insert
begin insert

24(C) Notwithstanding subdivision (d), the Taxpayers’ Rights
25Advocate may order amounts returned in the case of a seizure of
26property as a result of a jeopardy assessment, subject to the
27amounts set or adjusted pursuant to this section.

end insert
begin insert

28(2) (A) The board shall adjust the
29two-thousand-three-hundred-dollar ($2,300) amount specified in
30paragraph (1) as follows:

end insert
begin insert

31(i) On or before March 1, 2016, and on or before March 1 each
32year thereafter, the board shall multiply the amount applicable
33for the current fiscal year by the inflation factor adjustment
34calculated based on the percentage change in the Consumer Price
35Index, as recorded by the California Department of Industrial
36Relations for the most recent year available, and the formula set
37forth in paragraph (2) of subdivision (h) of Section 17041. The
38resulting amount will be the applicable amount for the succeeding
39fiscal year only when the applicable amount computed is equal to
P8    1or exceeds a new operative threshold, as defined in subparagraph
2(B).

end insert
begin insert

3(ii) When the applicable amount equals or exceeds an operative
4threshold specified in subparagraph (B), the resulting applicable
5amount, rounded to the nearest multiple of one hundred dollars
6($100), shall be operative for purposes of paragraph (1) beginning
7July 1 of the succeeding fiscal year.

end insert
begin insert

8(B) For purposes of this paragraph, “operative threshold”
9means an amount that exceeds by at least one hundred dollars
10($100) the greater of either the amount specified in paragraph (1)
11or the amount computed pursuant to subparagraph (A) as the
12operative adjustment to the amount specified in paragraph (1).

end insert

13(c) The board shall not sell any seized property until it has first
14notified the taxpayer in writing of the exemptions from levy under
15Chapter 4 (commencing with Section 703.010) of Division 2 of
16Title 9 of Part 2 of the Code of Civil Procedure.

17(d) begin deleteThis end deletebegin insertExcept as provided in subparagraph (C) of paragraph
18(1) of subdivision (b), this end insert
section shall not apply to the seizure of
19any property as a result of a jeopardy assessment.

20begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 40212 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
21amended to read:end insert

22

40212.  

(a) The board shall release any levy or notice to
23withhold issued pursuant to this part on any property in the event
24that the expense of the sale process exceeds the liability for which
25the levy is made.

26(b) begin insert(1)end insertbegin insertend insertbegin insert(A)end insertbegin insertend insert The Taxpayers’ Rights Advocate may order the
27release of any levy or notice to withhold issued pursuant to this
28part or, within 90 days from the receipt of funds pursuant to a levy
29or notice to withhold, order the return of any amount up tobegin delete oneend delete
30begin insert twoend insert thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of
31moneys received, upon his or her finding that the levy or notice
32to withhold threatens the health or welfare of the taxpayer or his
33or her spouse and dependents or family.

begin insert

34(B) The amount the Taxpayers’ Rights Advocate may release
35or return to each taxpayer subject to a levy or notice to withhold,
36is limited to two thousand three hundred dollars ($2,300), or the
37adjusted amount as specified in paragraph (2), in any monthly
38period.

end insert
begin insert

39(C) Notwithstanding subdivision (d), the Taxpayers’ Rights
40Advocate may order amounts returned in the case of a seizure of
P9    1property as a result of a jeopardy assessment, subject to the
2amounts set or adjusted pursuant to this section.

end insert
begin insert

3(2) (A) The board shall adjust the
4two-thousand-three-hundred-dollar ($2,300) amount specified in
5paragraph (1) as follows:

end insert
begin insert

6(i) On or before March 1, 2016, and on or before March 1 each
7year thereafter, the board shall multiply the amount applicable
8for the current fiscal year by the inflation factor adjustment
9calculated based on the percentage change in the Consumer Price
10Index, as recorded by the California Department of Industrial
11Relations for the most recent year available, and the formula set
12forth in paragraph (2) of subdivision (h) of Section 17041. The
13resulting amount will be the applicable amount for the succeeding
14fiscal year only when the applicable amount computed is equal to
15or exceeds a new operative threshold, as defined in subparagraph
16(B).

end insert
begin insert

17(ii) When the applicable amount equals or exceeds an operative
18threshold specified in subparagraph (B), the resulting applicable
19amount, rounded to the nearest multiple of one hundred dollars
20($100), shall be operative for purposes of paragraph (1) beginning
21July 1 of the succeeding fiscal year.

end insert
begin insert

22(B) For purposes of this paragraph, “operative threshold”
23means an amount that exceeds by at least one hundred dollars
24($100) the greater of either the amount specified in paragraph (1)
25or the amount computed pursuant to subparagraph (A) as the
26operative adjustment to the amount specified in paragraph (1).

end insert

27(c) The board shall not sell any seized property until it first has
28notified the taxpayer in writing of the exemptions from levy under
29Chapter 4 (commencing with Section 703.010) of Division 2 of
30Title 9 of Part 2 of the Code of Civil Procedure.

31(d) begin deleteThis end deletebegin insertExcept as provided in subparagraph (C) of paragraph
32(1) of subdivision (b), this end insert
section shall not apply to the seizure of
33any property as a result of a jeopardy assessment.

34begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 41172 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
35amended to read:end insert

36

41172.  

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

P10   1(b) begin insert(1)end insertbegin insertend insertbegin insert(A)end insertbegin insertend insert The Taxpayers’ Rights Advocate may order the
2release of any levy or notice to withhold issued pursuant to this
3part or, within 90 days from the receipt of funds pursuant to a levy
4or notice to withhold, order the return of any amount up tobegin delete oneend delete
5begin insert twoend insert thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin 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 taxpayer or his
8or her spouse and dependents or family.

begin insert

9(B) The amount the Taxpayers’ Rights Advocate may release
10or return to each taxpayer subject to a levy or notice to withhold,
11is limited to two thousand three hundred dollars ($2,300), or the
12adjusted amount as specified in paragraph (2), in any monthly
13period.

end insert
begin insert

14(C) Notwithstanding subdivision (d), the Taxpayers’ Rights
15Advocate may order amounts returned in the case of a seizure of
16property as a result of a jeopardy assessment, subject to the
17amounts set or adjusted pursuant to this section.

end insert
begin insert

18(2) (A) The board shall adjust the
19two-thousand-three-hundred-dollar ($2,300) amount specified in
20paragraph (1) as follows:

end insert
begin insert

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

end insert
begin insert

32(ii) When the applicable amount equals or exceeds an operative
33threshold specified in subparagraph (B), the resulting applicable
34amount, rounded to the nearest multiple of one hundred dollars
35($100), shall be operative for purposes of paragraph (1) beginning
36July 1 of the succeeding fiscal year.

end insert
begin insert

37(B) For purposes of this paragraph, “operative threshold”
38means an amount that exceeds by at least one hundred dollars
39($100) the greater of either the amount specified in paragraph (1)
P11   1or the amount computed pursuant to subparagraph (A) as the
2operative adjustment to the amount specified in paragraph (1).

end insert

3(c) The board shall not sell any seized property until it has first
4notified the taxpayer in writing of the exemptions from levy under
5Chapter 4 (commencing with Section 703.010) of Division 2 of
6Title 9 of Part 2 of the Code of Civil Procedure.

7(d) begin deleteThis end deletebegin insertExcept as provided in subparagraph (C) of paragraph
8(1) of subdivision (b), this end insert
section shall not apply to the seizure of
9any property as a result of a jeopardy assessment.

10begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 43523 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
11amended to read:end insert

12

43523.  

(a) The board shall release any levy or notice to
13withhold issued pursuant to this part on any property in the event
14that the expense of the sale process exceeds the liability for which
15the levy is made.

16(b) begin insert(1)end insertbegin insertend insertbegin insert(A)end insertbegin insertend insert The Taxpayers’ Rights Advocate may order the
17release of any levy or notice to withhold issued pursuant to this
18part or, within 90 days from the receipt of funds pursuant to a levy
19or notice to withhold, order the return of any amount up tobegin delete oneend delete
20begin insert twoend insert thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of
21moneys received, upon his or her finding that the levy or notice
22to withhold threatens the health or welfare of the taxpayer or his
23or her spouse and dependents or family.

begin insert

24(B) The amount the Taxpayers’ Rights Advocate may release
25or return to each taxpayer subject to a levy or notice to withhold,
26is limited to two thousand three hundred dollars ($2,300), or the
27adjusted amount as specified in paragraph (2), in any monthly
28period.

end insert
begin insert

29(C) Notwithstanding subdivision (d), the Taxpayers’ Rights
30Advocate may order amounts returned in the case of a seizure of
31property as a result of a jeopardy assessment, subject to the
32amounts set or adjusted pursuant to this section.

end insert
begin insert

33(2) (A) The board shall adjust the
34two-thousand-three-hundred-dollar ($2,300) amount specified in
35paragraph (1) as follows:

end insert
begin insert

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

end insert
begin insert

7(ii) When the applicable amount equals or exceeds an operative
8threshold specified in subparagraph (B), the resulting applicable
9amount, rounded to the nearest multiple of one hundred dollars
10($100), shall be operative for purposes of paragraph (1) beginning
11July 1 of the succeeding fiscal year.

end insert
begin insert

12(B) For purposes of this paragraph, “operative threshold”
13means an amount that exceeds by at least one hundred dollars
14($100) the greater of either the amount specified in paragraph (1)
15or the amount computed pursuant to subparagraph (A) as the
16operative adjustment to the amount specified in paragraph (1).

end insert

17(c) The board shall not sell any seized property until it has first
18notified the taxpayer in writing of the exemptions from levy under
19Chapter 4 (commencing with Section 703.010) of Division 2 of
20Title 9 of Part 2 of the Code of Civil Procedure.

21(d) begin deleteThis end deletebegin insertExcept as provided in subparagraph (C) of paragraph
22(1) of subdivision (b), this end insert
section shall not apply to the seizure of
23any property as a result of a jeopardy assessment.

24begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 45868 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
25amended to read:end insert

26

45868.  

(a) The board shall release any levy or notice to
27withhold issued pursuant to this part on any property in the event
28that the expense of the sale process exceeds the liability for which
29the levy is made.

30(b) begin insert(1)end insertbegin insertend insertbegin insert(A)end insertbegin insertend insert The Taxpayers’ Rights Advocate may order the
31release of any levy or notice to withhold issued pursuant to this
32part or, within 90 days from the receipt of funds pursuant to a levy
33or notice to withhold, order the return of any amount up tobegin delete oneend delete
34begin insert twoend insert thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert of
35moneys received, upon his or her finding that the levy or notice
36to withhold threatens the health or welfare of the feepayer or his
37or her spouse and dependents or family.

begin insert

38(B) The amount the Taxpayers’ Rights Advocate may release
39or return to each taxpayer subject to a levy or notice to withhold,
40is limited to two thousand three hundred dollars ($2,300), or the
P13   1adjusted amount as specified in paragraph (2), in any monthly
2period.

end insert
begin insert

3(C) Notwithstanding subdivision (d), the Taxpayers’ Rights
4Advocate may order amounts returned in the case of a seizure of
5property as a result of a jeopardy assessment, subject to the
6amounts set or adjusted pursuant to this section.

end insert
begin insert

7(2) (A) The board shall adjust the
8two-thousand-three-hundred-dollar ($2,300) amount specified in
9paragraph (1) as follows:

end insert
begin insert

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

end insert
begin insert

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

end insert
begin insert

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

end insert

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

35(d) begin deleteThis end deletebegin insertExcept as provided in subparagraph (C) of paragraph
36(1) of subdivision (b), this end insert
section shall not apply to the seizure of
37any property as a result of a jeopardy assessment.

38begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 46623 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
39amended to read:end insert

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) begin insert(1)end insertbegin insertend insertbegin insert(A)end insertbegin insertend insert 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 tobegin delete oneend deletebegin insert twoend insert thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert
10 of moneys received, upon his or her finding that the levy or notice
11to withhold threatens the health or welfare of the feepayer or his
12or her spouse and dependents.

begin insert

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.

end insert
begin insert

18(C) Notwithstanding subdivision (d), the Taxpayers’ Rights
19Advocate may order amounts returned in the case of a seizure of
20property as a result of a jeopardy assessment, subject to the
21amounts set or adjusted pursuant to this section.

end insert
begin insert

22(2) (A) The board shall adjust the
23two-thousand-three-hundred-dollar ($2,300) amount specified in
24paragraph (1) as follows:

end insert
begin insert

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

end insert
begin insert

36(ii) When the applicable amount equals or exceeds an operative
37threshold specified in subparagraph (B), the resulting applicable
38amount, rounded to the nearest multiple of one hundred dollars
39($100), shall be operative for purposes of paragraph (1) beginning
40July 1 of the succeeding fiscal year.

end insert
begin insert

P15   1(B) For purposes of this paragraph, “operative threshold”
2means an amount that exceeds by at least one hundred dollars
3($100) the greater of either the amount specified in paragraph (1)
4or the amount computed pursuant to subparagraph (A) as the
5operative adjustment to the amount specified in paragraph (1).

end insert

6(c) The board shall not sell any seized property until it has first
7notified the taxpayer in writing of the exemptions from levy under
8Chapter 4 (commencing with Section 703.010) of Division 2 of
9Title 9 of Part 2 of the Code of Civil Procedure.

10(d) begin deleteThis end deletebegin insertExcept as provided in subparagraph (C) of paragraph
11(1) of subdivision (b), this end insert
section shall not apply to the seizure of
12any property as a result of a jeopardy assessment.

13begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 50156.12 of the end insertbegin insertRevenue and Taxation Codeend insert
14begin insert is amended to read:end insert

15

50156.12.  

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

begin insert

27(B) The amount the Taxpayers’ Rights Advocate may release
28or return to each taxpayer subject to a levy or notice to withhold,
29is limited to two thousand three hundred dollars ($2,300), or the
30adjusted amount as specified in paragraph (2), in any monthly
31period.

end insert
begin insert

32(C) Notwithstanding subdivision (d), the Taxpayers’ Rights
33Advocate may order amounts returned in the case of a seizure of
34property as a result of a jeopardy assessment, subject to the
35amounts set or adjusted pursuant to this section.

end insert
begin insert

36(2) (A) The board shall adjust the
37two-thousand-three-hundred-dollar ($2,300) amount specified in
38paragraph (1) as follows:

end insert
begin insert

39(i) On or before March 1, 2016, and on or before March 1 each
40year thereafter, the board shall multiply the amount applicable
P16   1for the current fiscal year by the inflation factor adjustment
2calculated based on the percentage change in the Consumer Price
3Index, as recorded by the California Department of Industrial
4Relations for the most recent year available, and the formula set
5forth in paragraph (2) of subdivision (h) of Section 17041. The
6resulting amount will be the applicable amount for the succeeding
7fiscal year only when the applicable amount computed is equal to
8or exceeds a new operative threshold, as defined in subparagraph
9(B).

end insert
begin insert

10(ii) When the applicable amount equals or exceeds an operative
11threshold specified in subparagraph (B), the resulting applicable
12amount, rounded to the nearest multiple of one hundred dollars
13($100), shall be operative for purposes of paragraph (1) beginning
14July 1 of the succeeding fiscal year.

end insert
begin insert

15(B) For purposes of this paragraph, “operative threshold”
16means an amount that exceeds by at least one hundred dollars
17($100) the greater of either the amount specified in paragraph (1)
18or the amount computed pursuant to subparagraph (A) as the
19operative adjustment to the amount specified in paragraph (1).

end insert

20(c) The board shall not sell any seized property until it has first
21notified the fee payer in writing of the exemptions from levy under
22Chapter 4 (commencing with Section 703.010) of Division 2 of
23Title 9 of Part 2 of the Code of Civil Procedure.

24(d) begin deleteThis end deletebegin insertExcept as provided in subparagraph (C) of paragraph
25(1) of subdivision (b), this end insert
section shall not apply to the seizure of
26any property as a result of a jeopardy assessment.

27begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 55333 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
28amended to read:end insert

29

55333.  

(a) The board shall release any levy or notice to
30withhold issued pursuant to this part on any property in the event
31begin insert that the expenseend insert ofbegin delete any ofend delete thebegin delete following:end deletebegin insert sale process exceeds the
32liability for which the levy is made.end insert

begin delete

33(1) The expense of the sale process exceeds the liability for
34which the levy is made.

end delete
begin delete

35(2)

end delete

36begin insert(b)end insertbegin insert(1)end insertbegin insertend insertbegin insert(A)end insertbegin insertend insert The Taxpayers’ Rights Advocatebegin delete ordersend deletebegin insert may orderend insert
37 the release ofbegin delete theend deletebegin insert anyend insert levy or notice to withhold upon his or her
38finding that the levy or notice to withholdbegin insert issued pursuant to this
39part or, within 90 days from the receipt of funds pursuant to a levy
40or notice to withhold, order the return of any amount up to two
P17   1thousand three hundred dollars ($2,300) of moneys received,end insert

2 threatens the health or welfare of the taxpayer or his or her spouse
3and dependents or family.

begin insert

4(B) The amount the Taxpayers’ Rights Advocate may release
5or return to each taxpayer subject to a levy or notice to withhold,
6is limited to two thousand three hundred dollars ($2,300), or the
7 adjusted amount as specified in paragraph (2), in any monthly
8period.

end insert
begin insert

9(C) Notwithstanding subdivision (d), the Taxpayers’ Rights
10Advocate may order amounts returned in the case of a seizure of
11property as a result of a jeopardy assessment, subject to the
12amounts set or adjusted pursuant to this section.

end insert
begin insert

13(2) (A) The board shall adjust the
14two-thousand-three-hundred-dollar ($2,300) amount specified in
15paragraph (1) as follows:

end insert
begin insert

16(i) On or before March 1, 2016, and on or before March 1 each
17year thereafter, the board shall multiply the amount applicable
18for the current fiscal year by the inflation factor adjustment
19calculated based on the percentage change in the Consumer Price
20Index, as recorded by the California Department of Industrial
21Relations for the most recent year available, and the formula set
22forth in paragraph (2) of subdivision (h) of Section 17041. The
23resulting amount will be the applicable amount for the succeeding
24fiscal year only when the applicable amount computed is equal to
25or exceeds a new operative threshold, as defined in subparagraph
26(B).

end insert
begin insert

27(ii) When the applicable amount equals or exceeds an operative
28threshold specified in subparagraph (B), the resulting applicable
29amount, rounded to the nearest multiple of one hundred dollars
30($100), shall be operative for purposes of paragraph (1) beginning
31July 1 of the succeeding fiscal year.

end insert
begin insert

32(B) For purposes of this paragraph, “operative threshold”
33means an amount that exceeds by at least one hundred dollars
34($100) the greater of either the amount specified in paragraph (1)
35or the amount computed pursuant to subparagraph (A) as the
36operative adjustment to the amount specified in paragraph (1).

end insert
begin delete

37(b)

end delete

38begin insert(c)end insert The board shall not sell any seized property until it has first
39notified the taxpayer in writing of the exemptions from levy under
P18   1Chapter 4 (commencing with Section 703.010)begin insert of Division 2end insert of
2Title 9begin insert of Part 2end insert of the Code of Civil Procedure.

begin delete

3(c) This

end delete

4begin insert(d)end insertbegin insertExcept as provided in subparagraph (C) of paragraph (1)
5of subdivision (b), this end insert
section shall not apply to the seizure of any
6property as a result of a jeopardy assessment.

7begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 60632 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
8amended to read:end insert

9

60632.  

(a) The board shall release any levy or notice to
10withhold issued pursuant to this part on any property in the event
11the expense of the sale process exceeds the liability for which the
12levy is made.

13(b) begin insert(1)end insertbegin insertend insertbegin insert(A)end insertbegin insertend insert The Taxpayers’ Rights Advocate may order the
14release of any levy or notice to withhold issued pursuant to this
15part, or within 90 days from the receipt of the funds pursuant to a
16levy or notice to withhold may order the return of any amount up
17tobegin delete oneend deletebegin insert twoend insert thousandbegin delete fiveend deletebegin insert threeend insert hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,300)end insert
18 of moneys received, upon his or her finding that the levy or notice
19 to withhold threatens the health or welfare of the taxpayer or his
20or her spouse or dependents.

begin insert

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

end insert
begin insert

26(C) Notwithstanding subdivision (d), the Taxpayers’ Rights
27Advocate may order amounts returned in the case of a seizure of
28property as a result of a jeopardy assessment, subject to the
29amounts set or adjusted pursuant to this section.

end insert
begin insert

30(2) (A) The board shall adjust the
31two-thousand-three-hundred-dollar ($2,300) amount specified in
32paragraph (1) as follows:

end insert
begin insert

33(i) On or before March 1, 2016, and on or before March 1 each
34year thereafter, the board shall multiply the amount applicable
35for the current fiscal year by the inflation factor adjustment
36calculated based on the percentage change in the Consumer Price
37Index, as recorded by the California Department of Industrial
38Relations for the most recent year available, and the formula set
39forth in paragraph (2) of subdivision (h) of Section 17041. The
40resulting amount will be the applicable amount for the succeeding
P19   1fiscal year only when the applicable amount computed is equal to
2or exceeds a new operative threshold, as defined in subparagraph
3(B).

end insert
begin insert

4(ii) When the applicable amount equals or exceeds an operative
5threshold specified in subparagraph (B), the resulting applicable
6amount, rounded to the nearest multiple of one hundred dollars
7($100), shall be operative for purposes of paragraph (1) beginning
8July 1 of the succeeding fiscal year.

end insert
begin insert

9(B) For purposes of this paragraph, “operative threshold”
10means an amount that exceeds by at least one hundred dollars
11($100) the greater of either the amount specified in paragraph (1)
12or the amount computed pursuant to subparagraph (A) as the
13operative adjustment to the amount specified in paragraph (1).

end insert

14(c) The board shall not sell any seized property until it has first
15notified the taxpayer in writing of the exemptions from levy under
16Chapter 4 (commencing with Section 703.010) of Title 9 of the
17Code of Civil Procedure.

18(d) begin deleteThis end deletebegin insertExcept as provided in subparagraph (C) of paragraph
19(1) of subdivision (b), this end insert
section shall not apply to the seizure of
20any property as a result of a jeopardy assessment.

begin delete21

SECTION 1.  

Section 6002 of the Revenue and Taxation Code
22 is amended to read:

23

6002.  

Unless the context otherwise requires, the definitions
24given in this chapter govern the construction of this part.

end delete


O

    98