A key Senate tax committee today voted 9-0 to advance legislation I am sponsoring to empower California’s tax agencies to better assist struggling taxpayers.

The bill will help California’s job creators who are survivors of the worst economic downturn since the Great Depression and give tax agencies the needed flexibility to deal fairly with taxpayers who are victims of California’s economy.

More specifically, Senate Bill 228 (Wyland) would permit the Board of Equalization, Franchise Tax Board and State Controller to “withdraw” a lien when a taxpayer pays an outstanding liability in full—removing the lien from the taxpayer’s credit record.

Under current law, when a taxpayer falls behind on payments, California’s tax agencies may place a lien on that taxpayer’s personal property.

Once a taxpayer pays the outstanding liability in full, California tax agencies may “release” the lien. However, the release does not remove the lien from a taxpayer’s credit record,… Read More