CA SB 889
Title: California Department of Tax and Fee Administration: earnings withholding orders: settlement agreements: excise taxes.
Author: Senate Governance and Finance Committee
Summary
SB 889, Committee on Governance and Finance. California Department of Tax and Fee Administration: earnings withholding orders: settlement agreements: excise taxes. (1) Existing law, the Wage Garnishment Law, sets forth procedures for the levy of a judgment debtor’s wages when required to enforce a money judgment.This bill, for purposes of the Sales and Use Tax Law, the Use Fuel Tax Law, the Cigarette and Tobacco Products Tax Law, Alcoholic Beverage Tax Law, the Timber Yield 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, the Diesel Fuel Tax Law, and various taxes and fees collected in accordance with the Fee Collections Procedures Law, would authorize the California Department of Tax and Fee Administration (CDTFA), or the State Board of Equalization (BOE) in the case of the Alcoholic Beverage Tax Law, to serve earnings withholding orders for taxes, fees, or surcharges, as applicable, and any other notice or document required to be served or provided in connection with an earnings withholding order according to the Wage Garnishment Law to government and private employers by electronic transmission or other electronic technology, as provided.(2) The CDTFA administers various taxes, fees, and surcharges in accordance with the Fee Collections Procedures Law, including, among others, the Lead-Acid Battery Recycling Act of 2016, the Electronic Waste Recycling Act of 2003, and the Healthy Outcomes and Prevention Education (HOPE) Act.This bill would specify that a feepayer subject to liability under the Sales and Use Tax Law is also subject to liability for the same periods for taxes, fees, and surcharges administered pursuant to the Fee Collections Procedures Law, as applicable.(3) Existing law authorizes the CDTFA to enter into settlement agreements regarding protests, appeals, or refund claims for certain taxes and fees if it is determined that the settlement amount is consistent with a reasonable evaluation of the costs and risks associated with litigation. Existing law authorizes the executive director or the chief counsel to recommend a settlement and to approve a settlement on the advice of the Attorney General. Existing law requires joint approval from the executive director and chief counsel for settlements involving a reduction of tax or penalties in settlement not exceeding $5,000.This bill would specify that the director, rather than the department, is authorized to make various decisions pertaining to settlements, and would require the approval of only the director. The bill would, instead, require the Attorney General to advise only the chief counsel. The bill would remove the joint approval requirement for settlements involving a reduction of tax and penalties in settlement not exceeding $5,000, leaving approval solely to the discretion of the director, and would increase that $5,000 limitation to $11,500. Commencing July 1, 2029, and every 5th fiscal year thereafter, the bill would require the department to adjust for inflation the $11,500 limitation concerning settlements involving a reduction of tax and penalties by using the California Consumer Price Index, as calculated by the Department of Finance.Under the existing settlement authority, the executive director is required to create a public record of reduction of tax or penalties or total tax and penalties in settlement in excess of $500. Under existing law, the public record is required to include the name or names of the taxpayers who are parties to the settlement, the total amount in dispute, the amount agreed to pursuant to the settlement, a summary of the reasons why the settlement is in the best interests of the State of California, and, for any settlement approved by the department, the Attorney General’s conclusion as to whether the rec
Status
Enrolled and presented to the Governor at 4 p.m.
Bill Documents
CA SB 889 - 09/19/23 - Enrolled
09/19/23 - CA SB 889 (09/19/23 - Enrolled)
CA SB 889 - 09/01/23 - Amended Assembly
09/01/23 - CA SB 889 (09/01/23 - Amended Assembly)
CA SB 889 - 07/03/23 - Amended Assembly
07/03/23 - CA SB 889 (07/03/23 - Amended Assembly)
CA SB 889 - 03/21/23 - Introduced
03/21/23 - CA SB 889 (03/21/23 - Introduced)