California Assembly Bill AB1277 Amended / Bill

 BILL NUMBER: AB 1277AMENDED BILL TEXT AMENDED IN ASSEMBLY MARCH 26, 2015 INTRODUCED BY Assembly Member Brough  (   Coauthor:   Assembly Member   Holden   )  FEBRUARY 27, 2015  An act to amend Section 6002 of the Revenue and Taxation Code, relating to taxation.   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, as amended, Brough.  Sales and use tax.   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 assessment, 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 assessment, as specified.   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.   This bill would make a technical, nonsubstantive change to that law.  Vote: majority. Appropriation: no. Fiscal committee:  no   yes  . State-mandated local program: no. 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  one   two  thousand  five   three  hundred dollars  ($1,500)   ($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) Notwithstanding subdivision (d), the Taxpayers' Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy assessment, subject to the amounts set or adjusted pursuant to this section.   (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) This   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 assessment.  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  one   two  thousand  five  three  hundred dollars  ($1,500)   ($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) Notwithstanding subdivision (d), the Taxpayers' Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy assessment, subject to the amounts set or adjusted pursuant to this section.   (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)  This   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 assessment.  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  any of  the  following:   sale process exceeds the liability for which the levy is made.   (1) The expense of the sale process exceeds the liability for which the levy is made.   (2)   (b)   (1)     (A)    The Taxpayers' Rights Advocate  orders   may order  the release of  the   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 with   hold, 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) Notwithstanding subdivision (d), the Taxpayers' Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy assessment, subject to the amounts set or adjusted pursuant to this section.   (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).   (b)   (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.  (c)This   (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 assessment.  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  one   two  thousand  five   three  hundred dollars  ($1,500)   ($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) Notwithstanding subdivision (d), the Taxpayers' Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy assessment, subject to the amounts set or adjusted pursuant to this section.   (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)  This   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 assessment.  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  one   two  thousand  five   three  hundred dollars  ($1,500)   ($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) Notwithstanding subdivision (d), the Taxpayers' Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy assessment, subject to the amounts set or adjusted pursuant to this section.   (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)  This   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 assessment.  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  one   two  thousand  five   three  hundred dollars  ($1,500)   ($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) Notwithstanding subdivision (d), the Taxpayers' Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy assessment, subject to the amounts set or adjusted pursuant to this section.   (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)  This   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 assessment.  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  one   two  thousand  five   three  hundred dollars  ($1,500)   ($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) Notwithstanding subdivision (d), the Taxpayers' Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy assessment, subject to the amounts set or adjusted pursuant to this section.   (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)  This   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 assessment.  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  one   two  thousand  five   three  hundred dollars  ($1,500)   ($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) Notwithstanding subdivision (d), the Taxpayers' Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy assessment, subject to the amounts set or adjusted pursuant to this section.   (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)  This   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 assessment.  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  one   two  thousand  five   three  hundred dollars  ($1,500)   ($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) Notwithstanding subdivision (d), the Taxpayers' Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy assessment, subject to the amounts set or adjusted pursuant to this section.   (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)  This   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 assessment.  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  one   two  thousand  five   three  hundred dollars  ($1,500)   ($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) Notwithstanding subdivision (d), the Taxpayers' Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy assessment, subject to the amounts set or adjusted pursuant to this section.   (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)  This   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 assessment. 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  any of  the  following:   sale process exceeds the liability for which the levy is made.   (1) The expense of the sale process exceeds the liability for which the levy is made.   (2)   (b)   (1)     (A)    The Taxpayers' Rights Advocate  orders   may order  the release of  the   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) Notwithstanding subdivision (d), the Taxpayers' Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy assessment, subject to the amounts set or adjusted pursuant to this section.   (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).   (b)   (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.  (c) This  (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 assessment.  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  one   two  thousand  five   three  hundred dollars  ($1,500)   ($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) Notwithstanding subdivision (d), the Taxpayers' Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy assessment, subject to the amounts set or adjusted pursuant to this section.   (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)  This   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 assessment.  SECTION 1.   Section 6002 of the Revenue and Taxation Code is amended to read: 6002. Unless the context otherwise requires, the definitions given in this chapter govern the construction of this part.