Bill > SB1419

This bill amends existing law to allow the State Board of Equalization (BOE), under specific circumstances, to discharge certain uncollectible tax liabilities owed to the state. Previously, a discharge granted by the BOE or the Franchise Tax Board (FTB) would not release a person from paying taxes, licenses, fees, or other money owed to the state. However, this bill adds a new section to the Government Code that permits the BOE to release a person from a liability deemed uncollectible and extinguish that debt if at least two of the following conditions are met: the liability is less than $500, the person owing the debt has been deceased for over four years with no active probate, the BOE determines the person has a permanent financial hardship (meaning they cannot pay the debt and do not qualify for an installment plan), or the liability has been unpaid for more than 30 years. Financial hardship is defined as an inability to pay the outstanding liability and an inability to qualify for an installment payment arrangement as provided by specific sections of the Revenue and Taxation Code.