NEW LAW MEANS DELINQUENT TAXPAYERS MUST PAY UP OR FACE LOSING STATE LICENSES
Here is a Facebook “note" from Assemblymember Henry T. Perea, Assemblymember Perea is currently Chair of the Assembly Revenue and Taxation Committee. As the Chair of this committee, member Perea directs discussions about many controversial bills involving California’s tax code. Perea represents the 31st District which includes the Central Valley communities of Cutler-Orosi, Dinuba, Firebaugh, Fowler, Kerman, Mendota, Parlier, Reedley, Sanger, San Joaquin, Selma and the city of Fresno.
SACRAMENTO- The Hollywood celebrity, dot com millionaire, former professional athletes, doctors, lawyers, major builders and hundreds of others who owe millions combined in unpaid state taxes, may soon be stepping out of their fancy cars and on to the bus thanks to legislation signed into law today by Governor Jerry Brown.
Governor Jerry Brown signed Assembly Bill 1424, The Delinquent Taxpayer Accountability Act, into law today. The bill was introduced by Assemblymember Henry T. Perea (D-Fresno) as a way to help the state Franchise Tax Board and Board of Equalization collect some of the $6.5 billion owed to the state that goes unpaid each year. AB 1424 allows the state to suspend the professional and/or driver’s licenses of the state’s worst delinquent tax debtors until they make payment arrangements.
“It’s time that the worst tax debtors in our state know we mean business,” Assemblymember Perea said. “Everyone on this list has had a chance to work with the state to resolve their tax issues but have chosen instead to bury their heads in the sand and continue to spend lavishly.”
For the first time, California officials will be able to work with other states and the IRS to track down debtors who have moved funds out-of-state.
Initially the bill only applied to 250 people on the Franchise Tax Board’s delinquent debtors list, but fellow legislators requested an expansion in the scope of the bill to include 500 debtors on the Franchise Tax Board’s list as well as 500 additional debtors from the Board of Equalization’s delinquent debtor’s list.
Debtors will have their license reinstated after making payment arrangements with the state or if they demonstrate a financial hardship.