text: The provisions of the Code of Civil Procedure relating to service of summons, pleadings, proofs, trials, and appeals are applicable to an action brought pursuant to this article.

history: (History: Added by Stats. 1941, Ch. 113.)

article: 3. Suits for Taxes


kind: section

code: RTC

text: The Attorney General shall prosecute the action.

division: 2. OTHER TAXES

part: 7. INSURANCE TAXATION

chapter: 5. Payment and Collection

article: 3. Suits for Taxes

path: 2. OTHER TAXES > 7. INSURANCE TAXATION > 5. Payment and Collection > 3. Suits for Taxes


text:
(a) If an insurer’s right to do business has been forfeited or its corporate powers suspended, service of summons may be made upon the persons designated by law to be served as agents or officers of the insurer, and these persons are the agents of the insurer for all purposes necessary in order to prosecute the action. In the case of corporations whose powers have been suspended, the persons constituting the board of directors may defend the action.

(b) This section shall become operative on July 1, 2013.

history: (History: Repealed (in Sec. 108) and added by Stats. 2013, Ch. 33, Sec. 109. (SB 78) Effective June 27, 2013. Section operative July 1, 2013, by its own provisions.)

article: 3. Suits for Taxes


text: A writ of attachment may be issued in the action in the manner provided by Chapter 5 (commencing with Section 485.010) of Title 6.5 of Part 2 of the Code of Civil Procedure without the showing required by Section 485.010 of the Code of Civil Procedure.

history: (History: Amended by Stats. 1974, Ch. 1516.)

article: 3. Suits for Taxes


text:
(a) In the action, a certificate of the Controller or of the secretary of the board, showing unpaid taxes against an insurer is prima facie evidence of:

(1) The assessment of the taxes.

(2) The delinquency.

(3) The amount of the taxes, interest, and penalties due and unpaid to the state.

(4) That the insurer is indebted to the state in the amount of taxes, interest, and penalties appearing unpaid.

(5) That there has been compliance with all the requirements of law in relation to the assessment of the taxes.

(b) This section shall become operative on July 1, 2013.

history: (History: Repealed (in Sec. 111) and added by Stats. 2013, Ch. 33, Sec. 112. (SB 78) Effective June 27, 2013. Section operative July 1, 2013, by its own provisions.)

article: 3. Suits for Taxes


text: Payment of the amount of the judgment recovered in the action shall be made to the Controller.

history: (History: Added by renumbering Section 12683 by Stats. 1961, Ch. 740.)

article: 3. Suits for Taxes


text: The Controller may recover any refund or part thereof which is erroneously made and any credit or part thereof which is erroneously allowed in an action brought in a court of competent jurisdiction in any county or city and county in this State in which the Attorney General has an office. The action shall be brought in the name of the State and the Attorney General shall prosecute the action.

history: (History: Added by Stats. 1961, Ch. 740.)

article: 4. Recovery of Erroneous Refunds

path: 2. OTHER TAXES > 7. INSURANCE TAXATION > 5. Payment and Collection > 4. Recovery of Erroneous Refunds


text:
(a) Annually, between December 10th and 15th, the Controller shall transmit to the commissioner a statement showing the names of all insurers that failed to pay on or before December 10th the whole or any portion of the tax that became delinquent in the preceding June or which has been unpaid for more than 30 days from the date it became due and payable as a deficiency assessment under this part or the whole or any part of the interest or penalties due with respect to the tax. The statement shall show the amount of the tax, interest, and penalties due from each insurer.

(b) This section shall become operative on July 1, 2013.

history: (History: Repealed (in Sec. 114) and added by Stats. 2013, Ch. 33, Sec. 115. (SB 78) Effective June 27, 2013. Section operative July 1, 2013, by its own provisions.)

path: 2. OTHER TAXES > 7. INSURANCE TAXATION > 6. Suspension of Rights of Delinquent Insurers > 1. Revocation of Certificate of Authority


text: The commissioner shall give at least 10 days’ notice in writing to each insurer of the time and place of a hearing to show cause why its certificate of authority shall not be revoked. Upon hearing, the commissioner shall revoke the certificate of authority of each insurer which does not establish to his satisfaction at or before the hearing that the tax, interest, and penalties due from it have been paid.

history: (History: Amended by Stats. 1961, Ch. 740.)

chapter: 6. Suspension of Rights of Delinquent Insurers

article: 1. Revocation of Certificate of Authority


text: An insurer whose certificate of authority has been revoked pursuant to this article may have the certificate restored by the commissioner during the period for which it was issued upon the payment by the insurer of all taxes, interest, and penalties due from it and the payment to the commissioner of a fee of five hundred dollars ($500).

history: (History: Amended by Stats. 1965, Ch. 510.)


text: Every person who attempts or purports to exercise any of the rights, privileges or powers of a suspended domestic insurer or attempts to transact any intrastate business in this state in behalf of a forfeited foreign insurer is guilty of a misdemeanor. Upon conviction he shall be punished by a fine not exceeding two thousand dollars ($2,000), or by imprisonment in a county jail not exceeding one year, or by both such fine and imprisonment.

history: (History: Amended by Stats. 1983, Ch. 1092, Sec. 371. Effective September 27, 1983. Operative January 1, 1984, by Sec. 427 of Ch. 1092.)

article: 2. Suspended Corporate Insurers

path: 2. OTHER TAXES > 7. INSURANCE TAXATION > 6. Suspension of Rights of Delinquent Insurers > 2. Suspended Corporate Insurers


text: The county in which occurs any part of the attempted exercise of the powers or any part of the transaction of business has jurisdiction of the offense.

article: 2. Suspended Corporate Insurers


text: The certified copies of lists of corporations which have failed to pay the taxes, interest, and penalties imposed upon insurers transmitted by the Controller to county clerks and county recorders for filing or recording in their respective offices, or a copy of these lists certified by the Controller, are receivable in evidence in any court in lieu of the original record of suspension or forfeiture on file with the Controller, and are prima facie evidence of the truth of all statements contained.

history: (History: Amended by Stats. 1973, Ch. 665.)

article: 2. Suspended Corporate Insurers


text:
(a) If any amount has been illegally assessed, the board shall set forth that fact in its records, certify the amount determined to be assessed in excess of the amount legally assessed and the insurer or surplus line broker against which the assessment was made, and authorize the cancellation of the amount upon the records of the Controller and the board. The board shall mail a notice to the insurer or surplus line broker of any cancellation authorized. Any determination by the board pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days after the effective date of that determination.

(b) This section shall become operative on July 1, 2013.

history: (History: Amended by Stats. 2024, Ch. 499, Sec. 32. (SB 1528) Effective January 1, 2025.)

chapter: 7. Cancellations and Refunds

article: 1. Cancellations

path: 2. OTHER TAXES > 7. INSURANCE TAXATION > 7. Cancellations and Refunds > 1. Cancellations


text: If the commissioner discovers an amount assessed by the board which he believes to have been illegally assessed, he shall notify the board in writing of such fact, together with a statement of any information he may have concerning the correctness of the assessment.

article: 1. Cancellations


text:
(a) If the board determines that any tax, interest, or penalty has been paid more than once or has been erroneously or illegally collected or computed, the board shall set forth that fact in its records of the board, certify the amount of the taxes, interest, or penalties collected in excess of what was legally due, and from whom they were collected or by whom paid, and certify the excess to the Controller for credit or refund.

(b) The Controller upon receipt of a certification for credit or refund shall credit the excess on any amounts then due and payable from the insurer or surplus line broker under this part and refund the balance.

(c) Any determination by the board pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days after the effective date of that determination.

(d) This section shall become operative on July 1, 2013.

history: (History: Amended by Stats. 2024, Ch. 499, Sec. 33. (SB 1528) Effective January 1, 2025.)

article: 2. Refund or Credit for Collected Taxes

path: 2. OTHER TAXES > 7. INSURANCE TAXATION > 7. Cancellations and Refunds > 2. Refund or Credit for Collected Taxes


text: No credit or refund shall be allowed or approved after four years after April 1st of the year following the year for which the overpayment was made, or with respect to a deficiency assessment made under Article 3 (commencing with Section 12421) of Chapter 4 after six months from the date the deficiency assessment becomes final, or after six months from the date of the overpayment, whichever period expires the later, unless a claim therefor is filed with the commissioner or the board within that period.

history: (History: Amended by Stats. 1982, Ch. 454, Sec. 153.)

article: 2. Refund or Credit for Collected Taxes


text: Every claim for refund or credit shall be in writing and shall state the specific grounds upon which it is founded.

article: 2. Refund or Credit for Collected Taxes


text: Failure to file a claim for refund or credit within the time prescribed in this article constitutes a waiver of any demand against the State on account of overpayment.

article: 2. Refund or Credit for Collected Taxes


text: Within 30 days after disallowing any claim for refund or credit in whole or in part the board shall mail notice of its action to the claimant at its address as it appears in the records of the board.

article: 2. Refund or Credit for Collected Taxes


text: If the claim for refund or credit is presented to the commissioner he shall forthwith transmit it to the board, together with a statement of any information he may have concerning the subject of the claim.

article: 2. Refund or Credit for Collected Taxes


text:
(a) Interest shall be allowed upon the amount of any overpayment of tax by an insurer pursuant to this part at the modified adjusted rate per month established pursuant to Section 6591.5, from the first day of the monthly period following the period during which the overpayment was made. For purposes of this section, “monthly period” means the month commencing on the day after the due date of the payment through the same date as the due date in each successive month. In addition, a refund or credit shall be made of any interest imposed upon the claimant with respect to the amount being refunded or credited.

(b) The interest shall be paid as follows:

(1) In the case of a refund, to the last day of the calendar month following the date upon which the claimant is notified in writing that a claim may be filed or the date upon which the claim is approved by the board, whichever date is the earlier.

(2) In the case of a credit, to the same date as that to which interest is computed on the tax or amount against which the credit is applied.

(c) This section shall become operative on July 1, 2013.

history: (History: Repealed (in Sec. 123) and added by Stats. 2013, Ch. 33, Sec. 124. (SB 78) Effective June 27, 2013. Section operative July 1, 2013, by its own provisions.)

article: 2. Refund or Credit for Collected Taxes


text:
Interest shall be allowed upon the amount of any overpayment of tax by a surplus line broker pursuant to this part at the rate of 1 percent per calendar month or fraction thereof, from the first day of the monthly period following the period during which the overpayment was made. For purposes of this section, “monthly period” means the month commencing on the day after the due date of the payment through the same date as the due date in each successive month. In addition, a refund or credit shall be made of any interest imposed upon the claimant with respect to the amount being refunded or credited.

The interest shall be paid as follows:

(a) In the case of a refund, to the last day of the calendar month following the date upon which the claimant is notified in writing that a claim may be filed or the date upon which the claim is approved by the board, whichever date is the earlier.

(b) In the case of a credit, to the same date as that to which interest is computed on the tax or amount against which the credit is applied.

history: (History: Added by Stats. 1995, Ch. 721, Sec. 22. Effective January 1, 1996.)

article: 2. Refund or Credit for Collected Taxes


text: If any overpayment of taxes imposed by this part is refunded or credited within 90 days after the due date of the tax for the year for which the overpayment was made, no interest shall be allowed on that overpayment.

history: (History: Added by Stats. 1982, Ch. 327, Sec. 167. Effective June 30, 1982.)

article: 2. Refund or Credit for Collected Taxes


text:
(a) If the board determines that any overpayment has been made intentionally or made not incident to a bona fide and orderly discharge of a liability reasonably assumed by the insurer or surplus line broker to be imposed by law, no interest shall be allowed on the overpayment.

(b) If any insurer or surplus line broker which has filed a claim for refund requests the board to defer action on its claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the insurer or surplus line broker requests the board to defer action on the claim.

(c) This section shall become operative on July 1, 2013.

history: (History: Repealed (in Sec. 126) and added by Stats. 2013, Ch. 33, Sec. 127. (SB 78) Effective June 27, 2013. Section operative July 1, 2013, by its own provisions.)

article: 2. Refund or Credit for Collected Taxes


text: No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against this State or against any officer of the State to prevent or enjoin the assessment or collection under this part of any tax or any amount of tax required to be collected.

history: (History: Repealed and added by Stats. 1961, Ch. 740.)

chapter: 8. Taxpayers’ Suits

path: 2. OTHER TAXES > 7. INSURANCE TAXATION > 8. Taxpayers’ Suits


text: No suit or proceeding shall be maintained in any court for the recovery of any amount alleged to have been erroneously or illegally assessed or collected unless a claim for refund or credit has been duly filed in accordance with Article 2 of Chapter 7 of this part.


text: Within 90 days after the mailing of the notice of the board’s action upon a claim for refund or credit, the claimant may bring an action against the board on the grounds set forth in the claim in a court of competent jurisdiction in any county or city and county in the State in which the Attorney General has an office for the recovery of the whole or any part of the amount with respect to which the claim has been disallowed. The Attorney General shall defend the action.


text: If the board fails to mail notice of its action on a claim for refund or credit within six months after the claim is filed with the board, the claimant may, prior to mailing of notice by the board of its action on the claim, consider the claim disallowed and bring an action against the board on the grounds set forth in the claim for the recovery of the whole or any part of the amount claimed as an overpayment.


text: Failure to bring a suit or an action within the time specified constitutes a waiver of all demands against the State on account of an alleged overpayment.


text: If judgment is rendered for the plaintiff, the amount of the judgment shall first be credited on any taxes due and payable from the plaintiff. The balance of the judgment shall be refunded to the plaintiff.


text: In any judgment, interest shall be allowed, subject to the same limitations as are prescribed by Section 12984, at the modified adjusted rate per annum established pursuant to Section 6591.5, upon the amount found to have been illegally collected from the date of payment of the amount to the date of allowance of credit on account of the judgment or to a date preceding the date of the refund warrant by not more than 30 days, the date to be determined by the Controller.

history: (History: Amended by Stats. 1984, Ch. 1020, Sec. 29. Operative July 1, 1985, by Sec. 65 of Ch. 1020.)


text:
(a) A judgment shall not be rendered in favor of the plaintiff when the action is brought by or in the name of an assignee of the insurer paying the tax, interest, or penalties, or by any person other than the insurer that has paid the tax, interest, or penalties.

(b) This section shall become operative on July 1, 2013.

history: (History: Repealed (in Sec. 129) and added by Stats. 2013, Ch. 33, Sec. 130. (SB 78) Effective June 27, 2013. Section operative July 1, 2013, by its own provisions.)


text: All taxes, interest, and penalties collected under this part shall be transmitted to the State Treasurer to be deposited in the State Treasury to the credit of the Insurance Tax Fund, which is hereby created. Upon transmitting moneys to the State Treasurer, the commissioner shall furnish the Controller with a record of the amounts transmitted and the insurers from whom the moneys have been received.

history: (History: Amended by Stats. 1966, 1st Ex. Sess., Ch. 144.)

chapter: 9. Disposition of Proceeds

path: 2. OTHER TAXES > 7. INSURANCE TAXATION > 9. Disposition of Proceeds


text: The money in the Insurance Tax Fund shall, upon order of the Controller, be drawn therefrom for refunds under this part or be transferred to the General Fund of the State.

history: (History: Added by Stats. 1961, Ch. 740.)


text: On or before April 1, the State Compensation Insurance Fund shall pay into the State Treasury to the credit of the Insurance Tax Fund the sum required under Section 12203.

history: (History: Amended by Stats. 2006, Ch. 538, Sec. 621. Effective January 1, 2007.)


text: The board, the Insurance Commissioner, and the Controller may each prescribe, adopt, and enforce rules and regulations relating to the administration and enforcement of this part for which the agency has a constitutional or statutory responsibility. Each agency may prescribe the extent to which any rule and regulation it has adopted shall be applied without retroactive effect.

history: (History: Added by Stats. 1982, Ch. 684, Sec. 1.)

chapter: 10. Administration

path: 2. OTHER TAXES > 7. INSURANCE TAXATION > 10. Administration


text: This part shall be known and may be cited as the Nonadmitted Insurance Tax Law.

history: (History: Added by Stats. 1993, Ch. 1142, Sec. 3. Effective October 11, 1993.)

part: 7.5. NONADMITTED INSURANCE TAX

path: 2. OTHER TAXES > 7.5. NONADMITTED INSURANCE TAX


text:
For purposes of this part:

(a) “Person” means an individual, bank, corporation, partnership, limited liability company, society, association, organization, joint stock company, estate, or trust, or a receiver, trustee, assignee, referee or any other person acting in a fiduciary capacity, whether appointed by a court or otherwise, or any combination thereof.

(b) “Taxpayer” means any person subject to the tax imposed by this part.

history: (History: Amended by Stats. 1994, Ch. 1010, Sec. 223.6. Effective January 1, 1995.)


text:
(a) For gross premiums paid or to be paid on insurance contracts that take effect or are renewed on or after January 1, 1994, every California home state insured as defined by subdivision (f) of Section 1760.1 of the Insurance Code, who effects insurance governed by Chapter 6 (commencing with Section 1760) of Part 2 of Division 1 of the Insurance Code shall pay a gross premium tax of 3 percent charged for the use of the state, less 3 percent of returned premiums that were subject to the tax received by reason of cancellation or reduction of premium.

(1) This section shall not apply to any of the following:

(A) Insurance coverage for which a tax on the gross premium is due or has been paid pursuant to Section 1775.5 of the Insurance Code.

(B) Gross premiums paid and returned premiums received by that California home state insured as defined by subdivision (f) of Section 1760.1 of the Insurance Code, upon business governed by the provisions of Section 1760.5 of the Insurance Code.

(C) Insurance coverage for which a tax on the gross premium is due or has been paid pursuant to Section 132 of the Insurance Code.

(2) If during any calendar quarter 3 percent of the returned premiums received that were subject to the tax imposed by this part exceed 3 percent of the gross premiums paid or to be paid by that person on contracts that took effect or were renewed in that calendar quarter, then that person may either carry forward the excess to a succeeding calendar quarter and apply it as a credit against the 3 percent of gross premiums paid or to be paid by that person in the succeeding calendar quarter, or the person may elect to receive, and be paid a refund equal to the amount of taxes paid by the person on the excess of returned premiums received over gross premiums paid or to be paid.

(b) For purposes of determining the tax, the total gross premium paid or to be paid for all nonadmitted insurance placed in a single transaction with one underwriter or group of underwriters, whether in one or more policies, in that calendar quarter during which the taxable insurance contract or contracts took effect or were renewed, shall be the entire gross premium charged on all nonadmitted insurance for the California home state insured as defined by subdivision (f) of Section 1760.1 of the Insurance Code.

(c) Subdivision (b) shall not apply to interstate motor transit operations conducted between this and other states. With respect to those operations, the tax shall be payable on the entire premium charged on all nonadmitted insurance, less any of the following:

(1) The portion of the premium that is determined to have been charged for operations in other states that have taxed the premium on operations in states of an insured maintaining its headquarters office in this state.

(2) The premium for any operations outside of this state of an insured who maintains a headquarters operating office outside of this state and a branch office in this state.

history: (History: Amended by Stats. 2011, Ch. 83, Sec. 32. (AB 315) Effective July 15, 2011. Operative July 21, 2011, by Sec. 34 of Stats. 2011, Ch. 83.)


text:
(a) Every person subject to this part shall file with the Franchise Tax Board a return prescribed by the board on or before the first day of the third month following the close of the calendar quarter during which a taxable insurance contract took effect or was renewed.

(b) In accordance with forms and instructions, the tax, penalties, and interest imposed by this part shall be administered and enforced by the Franchise Tax Board as though they are taxes imposed under Part 10 (commencing with Section 17001). Part 10 (commencing with Section 17001), Part 10.2 (commencing with Section 18401), or any other applicable law shall apply for this purpose in the same manner and with the same force and effect as if the language of Part 10 (commencing with Section 17001), Part 10.2 (commencing with Section 18401), or the other applicable law is incorporated in full into this part, except to the extent that the provision is either inconsistent with a provision of this part, is not relevant to this part, or is otherwise provided for under this part.

(c) The following penalties shall apply, in lieu of those penalties provided under Part 10.2 (commencing with Section 18401):

(1) A penalty of 10 percent of the amount of the payment due is imposed upon any person who fails to make the necessary payment within the time required.

(2) For any part of a payment required that was not made within the time required by law, when the nonpayment or late payment was due to fraud on the part of the taxpayer, a penalty of 25 percent of the amount unpaid shall be added thereto, in addition to all other penalties otherwise imposed.

(d) (1) Except as provided in paragraph (2), interest shall be allowed and paid on any refund provided under paragraph (2) of subdivision (a) of Section 13210 from the date the claim for refund is filed. No interest shall be allowed or paid on amounts credited to succeeding calendar quarters as provided under paragraph (2) of subdivision (a) of Section 13210.

(2) If an amount refunded as provided under paragraph (2) of subdivision (a) of Section 13210 within 120 days after a claim or return is filed, or within 120 days after the last date for filing the tax return, whichever is later, no interest shall be allowed on the amount of the refund.

(e) The period of limitation for allowing or making refunds or credits as provided under paragraph (2) of subdivision (a) of Section 13210 shall be the period of limitations for allowing or making refunds or credits of overpayments under Part 10.2 (commencing with Section 18401), except that the “date of cancellation or reduction of premium” shall be substituted for “date of overpayment.”


text: In the event that a person subject to tax is delinquent in the payment of any amount due under this part, and that person also has an amount imposed and due and payable under Part 10 (commencing with Section 17001), Part 10.2 (commencing with Section 18401), or Part 11 (commencing with Section 23001), any amounts collected by the Franchise Tax Board shall be applied first to the payment of those taxes, additions to tax, penalties, interest, fees, or other amounts imposed and due and payable under Part 10 (commencing with Section 17001), Part 10.2 (commencing with Section 18401), or Part 11 (commencing with Section 23001).

history: (History: Amended by Stats. 1994, Ch. 146, Sec. 201. Effective January 1, 1995.)


text:
(a) All amounts collected shall be transmitted to the Treasurer and deposited in the State Treasury to the credit of the Insurance Tax Fund that is created by Section 13151.

(b) Moneys in the Insurance Tax Fund shall be drawn therefrom for the purpose of paying refunds under this part.


text: Neither the state nor any political subdivision of the state shall impose any gift, inheritance, succession, legacy, income, or estate tax, or any other tax, on gifts or on the estate or inheritance of any person or on or by reason of any transfer occurring by reason of a death.

history: (History: Repealed and added June 8, 1982, by initiative Proposition 6. Reenacted, in identical language, by Stats. 1982, Ch. 1535, Sec. 15.)

part: 8. PROHIBITION OF GIFT AND DEATH TAXES

chapter: 1. Imposition of Tax

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 1. Imposition of Tax


text: Notwithstanding the provisions of Section 13301, whenever a federal estate tax is payable to the United States, there is hereby imposed a California estate tax equal to the portion, if any, of the maximum allowable amount of the Credit for State Death Taxes, allowable under the applicable federal estate tax law, which is attributable to property located in the State of California. However, in no event shall the estate tax hereby imposed result in a total death tax liability to the State of California and the United States in excess of the death tax liability to the United States which would result if this section were not in effect.


text: The Legislature shall provide for the collection and administration of the tax imposed by Section 13302.

history: (History: Repealed and added June 8, 1982, by initiative Proposition 6. See same-numbered section added by Stats. 1982, Ch. 1535.)


text:
In a case where a decedent leaves property having a situs in this state, and leaves other property having a situs in another state, or other states, the portion of the maximum state death tax credit allowable against the federal estate tax on the total estate by the federal estate tax law which is attributable to the property having a situs in California shall be determined in the following manner:

(a) For the purpose of apportioning the maximum state death tax credit, the gross value of the property shall be that value finally determined for federal estate tax purposes.

(b) The maximum state death tax credit allowable shall be multiplied by the percentage which the gross value of property having a situs in California bears to the gross value of the entire estate subject to federal estate tax.

(c) The product determined pursuant to subdivision (b) shall be the portion of the maximum state death tax credit allowable which is attributable to property having a situs in California.

history: (History: Added by Stats. 1982, Ch. 1535, Sec. 15. See same-numbered section added by Proposition 6.)


text:
In a case where the gross estate of a decedent includes property having a situs in this state, and includes other property having a situs in another state, or other states, the portion of the maximum state death tax credit allowable against the federal estate tax on the total estate by the federal estate tax law that is attributable to the property having a situs in California shall be determined in the following manner:

(a) For the purpose of apportioning the maximum state death tax credit, the gross value of the property shall be that value finally determined for federal estate tax purposes.

(b) The maximum state death tax credit allowable shall be multiplied by the percentage which the gross value of property having a situs in California bears to the gross value of the entire estate subject to federal estate tax.

(c) The product determined pursuant to subdivision (b) shall be the portion of the maximum state death tax credit allowable that is attributable to property having a situs in California.

history: (History: Amended by Stats. 2000, Ch. 363, Sec. 2. Effective September 8, 2000.)


text: Except where the context otherwise requires, the definitions given in this chapter govern construction of this part.

history: (History: Added by Stats. 1982, Ch. 1535, Sec. 15.)

chapter: 2. Definitions

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 2. Definitions


text:
“Estate” or “property” means the real or personal property or interest therein included in the gross estate of a decedent or transferor, and includes all of the following:

(a) All intangible personal property included in the gross estate of a resident decedent within or without the state or subject to the jurisdiction thereof.

(b) All intangible personal property in California included in the gross estate of a nonresident decedent of the United States, including all stock of a corporation organized under the laws of California or which has its principal place of business or does the major part of its business in California or of a federal corporation or national bank which has its principal place of business or does the major part of its business in California, excluding, however, savings accounts in savings and loan associations operating under the authority of the Division of Savings and Loan or the Federal Home Loan Bank board and bank deposits, unless those deposits are held and used in connection with a business conducted or operated, in whole or in part, in California.

history: (History: Amended by Stats. 2000, Ch. 363, Sec. 3. Effective September 8, 2000.)


text: “Personal representative” means the personal representative of the decedent or, if there is no personal representative appointed, qualified and acting within this state, any person who is in actual or constructive possession of any property included in the gross estate of the decedent.


text: “Transfer” means the inclusion of any property or other interest included in the gross estate of a decedent.

history: (History: Amended by Stats. 2000, Ch. 363, Sec. 4. Effective September 8, 2000.)


text: “Decedent” or “transferor” means any person whose death gives rise to a transfer.

history: (History: Amended by Stats. 2000, Ch. 363, Sec. 5. Effective September 8, 2000.)


text: “Transferee” means any person to whom a transfer is made, and includes any legatee, devisee, heir, next of kin, grantee, donee, vendee, assignee, successor, survivor, or beneficiary.


text: “Resident” or “resident decedent” means a decedent who was domiciled in California at his or her death.


text: “Nonresident” or “nonresident decedent” means a decedent who was domiciled outside of California at his or her death.


text: “Gross estate” means “gross estate” as defined in Section 2031 of the United States Internal Revenue Code of 1954, as amended or renumbered.


text: “Taxable estate” means the “taxable estate” as defined in Section 2051 of the United States Internal Revenue Code of 1954, as amended or renumbered.


text: “Federal credit” means the maximum amount of the credit for state death taxes allowed by Section 2011 of the United States Internal Revenue Code of 1954, as amended or renumbered in respect to a decedent’s taxable estate.


text:
The personal representative of every estate subject to the tax imposed by this part who is required to file a federal estate tax return shall file with the Controller on or before the federal estate tax return is required to be filed both of the following:

(a) A return for the tax due under this part.

(b) A true copy of the federal estate tax return.

chapter: 3. Returns

article: 1. Estate Tax Return

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 3. Returns > 1. Estate Tax Return


text: If the personal representative has obtained an extension of time for filing the federal estate tax return, the filing required by Section 13501 shall be similarly extended until the end of the time period granted in the extension of time for the federal estate tax return. A true copy of the federal extension shall be filed with the Controller.

article: 1. Estate Tax Return


text: If the personal representative files an amended federal estate tax return, he or she shall immediately file with the Controller an amended return with a true copy of the amended federal estate tax return. If the personal representative is required to pay an additional tax under this part pursuant to the amended return, he or she shall pay that additional tax, together with any interest as provided in Section 13550 at the same time the amended return is filed.

article: 1. Estate Tax Return


text: Upon final determination of the federal estate tax due, the personal representative shall, within 60 days after that determination, give written notice of it to the Controller. If any additional tax is due under this part by reason of this determination, the personal representative shall pay the same, together with interest as provided in Section 13550, at the same time he or she files the notice.

article: 1. Estate Tax Return


text: If the return provided for in Section 13501 is not filed within the time period specified therein or the extension specified in Section 13502, then the personal representative shall pay, in addition to the interest provided in Section 13550, a penalty equal to 5 percent of the tax due pursuant to this part, as finally determined, for each month, or portion thereof, during which that failure to file continues, not exceeding 25 percent in the aggregate, unless it is shown that such failure is due to reasonable cause. If a similar penalty for failure to timely file the federal estate tax return is waived, that waiver shall be deemed to constitute reasonable cause for purposes of this section.

article: 2. Penalties

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 3. Returns > 2. Penalties


text:
In a case not involving a false or fraudulent return or failure to file a return, if the Controller determines at any time after the tax is due, but not later than four years after the return is filed, that the tax disclosed in any return required to be filed by this part is less than the tax disclosed by his or her examination, a deficiency shall be determined. That determination may also be made within such time after the expiration of that four-year period as may be agreed upon in writing between the Controller and the personal representative.

For purposes of this section, a return filed before the last day prescribed by law for filing that return shall be considered as filed on that last day.

chapter: 4. Deficiency Determination

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 4. Deficiency Determination


text: In the case of a false or fraudulent return or failure to file a return, the Controller may determine the tax at any time.


text: In any case in which a deficiency has been determined in an erroneous amount, the Controller may, within three years after the erroneous determination was made, set aside the determination or issue an amended determination in the correct amount.


text: The Controller shall give notice of the deficiency determined, together with any penalty for failure to file a return, by personal service or by mail to the person filing the return at the address stated in the return, or, if no return is filed, to the person liable for the tax. Copies of the notice of deficiency may in like manner be given to such other persons as the Controller deems advisable.


text: In any case in which it is claimed that a deficiency has been determined in an erroneous amount, any person who is liable for the tax may, within three years after the determination was made, bring an action against the state in the superior court having jurisdiction to have the tax modified in whole or in part.


text: The tax imposed by this part shall be paid by the personal representative to the extent of assets subject to his or her control. Liability for payment of the tax continues until the tax is paid.

chapter: 5. Payment of Tax

article: 1. Generally

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 5. Payment of Tax > 1. Generally


text: The tax imposed by this part is due and payable at the date of the decedent’s death.

article: 1. Generally


text: The tax imposed by this part is delinquent at the expiration of nine months from the date on which it becomes due and payable, if not paid within that time.

article: 1. Generally


text: The tax imposed by this part shall be paid to the Controller by remittance to the Treasurer.

article: 1. Generally


text: In the case of any decedent dying on or after January 1, 1999, Section 6166 of the Internal Revenue Code, enacted as of January 1, 1998, shall apply to any tax due, and the interest rate on amounts due, as provided in Section 6601(j) of the Internal Revenue Code, enacted as of January 1, 1998, shall apply in lieu of the rate provided in Section 13550.

history: (History: Added by Stats. 1998, Ch. 323, Sec. 8. Effective August 20, 1998.)

article: 1. Generally


text:
(a) The tax imposed by this part does not bear interest if it is paid prior to the date on which it otherwise becomes delinquent. However, if the tax is paid after that date, the tax bears interest at the rate for underpayment of estate tax provided in Section 6621(a)(2) of the Internal Revenue Code from the date it became delinquent and until it is paid. Interest under this section shall be compounded daily.

(b) The amendments made by Chapter 323 of the Statutes of 1998 shall apply to delinquent amounts unpaid on or after January 1, 1999, to December 31, 2000, inclusive.

history: (History: Amended by Stats. 2000, Ch. 363, Sec. 6. Effective September 8, 2000. Operative January 1, 2001, by Sec. 11 of Ch. 363.)

article: 2. Interest

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 5. Payment of Tax > 2. Interest


text: Every payment on the tax imposed by this part is applied, first, to any interest due on the tax, secondly, to any penalty imposed by this part, and then, if there is any balance, to the tax itself.

history: (History: Added by Stats. 2003, Ch. 221, Sec. 1. Effective January 1, 2004.)

article: 2. Interest


text: All interest and penalties provided in this chapter shall be treated and collected in the same manner as taxes.

history: (History: Added by Stats. 2003, Ch. 221, Sec. 2. Effective January 1, 2004.)

article: 2. Interest


text: If any personal representative fails to pay any tax imposed by this part for which he or she is liable prior to the delinquent date of the tax, he or she shall, on motion of the Controller, in his or her discretion, be required by the superior court having jurisdiction to execute a bond to the people of the State of California in a penalty of twice the amount of the tax with those sureties as the court may approve, conditioned for the payment of the tax, plus interest on the tax at the rate of 12 percent per annum commencing on the date that tax became delinquent, within a certain time to be fixed by the court and specified in the bond.

article: 3. Delinquent Tax Bond

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 5. Payment of Tax > 3. Delinquent Tax Bond


text: The bond shall be filed in the office of the clerk of the court, and a certified copy shall be immediately transmitted to the Controller.

article: 3. Delinquent Tax Bond


text: If the bond is not filed within 20 days after the date of the filing of the order requiring it, the letters of the personal representative affected shall be revoked upon motion of the Controller.

article: 3. Delinquent Tax Bond


text: Whenever the Controller determines that the tax due under this part has been over paid, the person making payment shall be entitled to a refund of the amount erroneously paid on presentation of proof satisfactory to the Controller that he or she is entitled to a refund.

chapter: 6. Refunds

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 6. Refunds


text: An application for the refund shall be made to the Controller within one year after the date the federal estate tax has been finally determined.


text: On proof satisfactory that the applicant is entitled to a refund, the Controller shall draw his or her warrant upon the Treasurer in favor of the person who paid the tax in the amount erroneously paid, and the Treasurer shall refund that amount.


text:
(a) For purposes of determining interest on overpayments for periods beginning before July 1, 2002, interest shall be allowed and paid upon any overpayment of tax due under this part in the same manner as provided in Sections 6621(a)(1) and 6622 of the Internal Revenue Code.

(b) For purposes of determining interest on overpayments for periods beginning on or after July 1, 2002, interest shall be allowed and paid upon any overpayment of tax due under this part at the lesser of the following:

(1) Five percent.

(2) The bond equivalent rate of 13-week United States Treasury bills, determined as follows:

(A) The bond equivalent rate of 13-week United States Treasury bills established at the first auction held during the month of January shall be utilized for determining the appropriate rate for the following July 1 to December 31, inclusive.

(B) The bond equivalent rate of 13-week United States Treasury bills established at the first auction held during the month of July shall be utilized for determining the appropriate rate for the following January 1 to June 30, inclusive.

(c) For purposes of subdivision (b), in computing the amount of any interest required to be paid by the state, that interest shall be computed as simple interest, not compound interest. That interest shall be allowed from the date on which payment would have become delinquent, if not paid, or the date of actual payment, whichever is later in time, to the date preceding the date of the refund warrant by not more than 30 days, the date to be determined by the Controller.

history: (History: Amended by Stats. 2003, Ch. 697, Sec. 5. Effective January 1, 2004.)


text: The state may enforce its claim for any tax imposed by this part and enforce the lien of the tax by a civil action in any court of competent jurisdiction against any person liable for the tax or against any property subject to the lien.

chapter: 7. Collection of Tax

article: 1. Suit for Tax

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 7. Collection of Tax > 1. Suit for Tax


text:
(a) If any personal representative fails to pay any tax, interest, or penalty imposed under this part at the time that it becomes due and payable, the amount thereof, including penalties and interest, together with any costs in addition thereto, shall thereupon be a perfected and enforceable state tax lien. Except as otherwise provided in subdivision (b), the lien is subject to Chapter 14 (commencing with Section 7150) of Division 7 of Title 1 of the Government Code.

(b) Notwithstanding subdivision (a) of Section 7172 of the Government Code, all of the following apply to a state tax lien created pursuant to subdivision (a):

(1) If the lien is not extinguished as in paragraph (2), (3), or (4), or otherwise released or discharged, it expires 10 years from the time a deficiency determination is issued pursuant to this part if, within that 10 years, no notice of the lien has been recorded or filed as provided in Section 7171 of the Government Code.

(2) If suit or a proceeding for collection of the tax has not been instituted within 5 years after the tax becomes due and payable, the lien ceases as to any bona fide purchaser, mortgagee, or lessee of, or beneficiary under a deed of trust on, the property subject to the lien.

(3) If property subject to the lien is sold, exchanged, or otherwise transferred pursuant to the Probate Code the lien ceases as to the property and attaches to the proceeds or other consideration received.

(4) If property subject to the lien is mortgaged, hypothecated or leased pursuant to the Probate Code, the lien becomes subject to and subordinate to the rights and interests of the mortgagee, lessee, or other person so secured or created, and attaches to the proceeds of the mortgage, hypothecation, or lease.

history: (History: Amended by Stats. 1983, Ch. 645, Sec. 2.)

article: 2. Lien of Tax

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 7. Collection of Tax > 2. Lien of Tax


text: At any time within 10 years after any person is delinquent in the payment of any amount herein required to be paid, or within 10 years after the last recording or filing of a notice of state tax lien under Section 7171 of the Government Code, the Controller or his or her authorized representative may issue a warrant for the enforcement of any liens and for the collection of any amount required to be paid to the state under this part. The warrant shall be directed to any sheriff or marshal and shall have the same effect as a writ of execution. The warrant shall be levied and sale made pursuant to it in the same manner and with the same effect as a levy of and sale pursuant to a writ of execution.

history: (History: Amended by Stats. 1996, Ch. 872, Sec. 149. Effective January 1, 1997.)

article: 3. Warrant for Collection of Tax

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 7. Collection of Tax > 3. Warrant for Collection of Tax


text: The Controller may pay or advance to the sheriff or marshal, the same fees, commissions, and expenses for his or her services as are provided by law for similar services pursuant to a writ of execution. The Controller, and not the court, shall approve the fees for publication in a newspaper.

history: (History: Amended by Stats. 1996, Ch. 872, Sec. 150. Effective January 1, 1997.)

article: 3. Warrant for Collection of Tax


text: The fees, commissions, and expenses are obligations of the person required to pay any amount under this part and may be collected from him or her by virtue of the warrant or in any manner provided in this part for the collection of the tax.

article: 3. Warrant for Collection of Tax


text: At any time after a tax imposed by this part is delinquent, the Controller may have a writ of execution issued for the enforcement of any judgment rendered pursuant to this part in respect to the tax.

article: 4. Writ of Execution

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 7. Collection of Tax > 4. Writ of Execution


text: The writ shall be executed against any property of the person liable for payment of the tax, or against any property subject to the lien of the tax.

article: 4. Writ of Execution


text: No fee shall be exacted from the Controller for the issuance of execution of the writ.

article: 4. Writ of Execution


text: Proceedings for the collection of any tax imposed by this part may be commenced at any time after the tax is due and within 10 years from and after the time a delinquency determination is issued pursuant to the provisions of this part.

article: 5. Miscellaneous

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 7. Collection of Tax > 5. Miscellaneous


text: In any proceeding for the enforcement of the estate tax a certificate by the Controller showing the amount due is prima facie evidence of the imposition of the tax, of the fact that it is due, and of compliance by the Controller with all the provisions of this part in relation to the computation and determination of the tax.

article: 5. Miscellaneous


text: No injunction, writ of mandate, or other legal or equitable process shall ever issue in any suit, action, or proceeding in any court against this state or any officer of this state to prevent or enjoin the collection of any tax imposed by this part.

article: 5. Miscellaneous


text: The Controller may bring suits in the courts of other states to collect estate taxes payable under this part. An official of another state which extends a like comity to this state may sue for the collection of similar taxes in the courts of this state. A certificate by the secretary of state of another state, under the great seal of that state, that an official thereof has authority to collect its estate or other transfer taxes is conclusive evidence of the authority of that official in any suit for the collection of those taxes in any court of this state.

article: 5. Miscellaneous


text: The remedies of the state for the enforcement of the tax imposed by this part are cumulative, and no action taken by the Controller or any other state official constitutes an election by the state or any of its officers to pursue any remedy to the exclusion of any other remedy for which provision is made by this part.

article: 5. Miscellaneous


text: The Controller may compromise with the personal representative the tax, including interest and penalty thereon, payable on the estate of any decedent who it is claimed was not a resident of this state at the time of his or her death.

article: 6. Tax Compromise

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 7. Collection of Tax > 6. Tax Compromise


text: When the Controller claims that a decedent was domiciled in this state at the time of his or her death and the taxing authorities of another state or states make a like claim on behalf of their state or states, the Controller may make a written agreement of compromise with the other taxing authorities and the executor or administrator that a certain sum shall be accepted in full satisfaction of any and all death taxes imposed by this state, including any interest to the date of filing the agreement. The agreement shall also fix the amount to be accepted by the other states in full satisfaction of death taxes. The executor or administrator is hereby authorized to make that agreement. Either the Controller or the executor or administrator shall file the agreement, or a duplicate, with the authority that would be empowered to determine death taxes for this state if there had been no agreement; and thereupon the tax shall be deemed conclusively fixed as therein provided. Unless the tax is paid within 90 days after filing the agreement, interest shall thereafter accrue upon the amount fixed in the agreement but the time between the decedent’s death and the filing shall not be included in computing the interest.

article: 6. Tax Compromise


text: As used in this article, “state” means any state, territory, or possession of the United States, and the District of Columbia.

article: 6. Tax Compromise


text: This article shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it.

article: 6. Tax Compromise


text: This article may be cited as the “Uniform Act on Interstate Compromise of Death Taxes.”

article: 6. Tax Compromise


text: This article shall apply to estates of decedents dying before or after its enactment.

article: 6. Tax Compromise


text: When the Controller claims that a decedent was domiciled in this state at the time of his or her death and the taxing authorities of another state or states make a like claim on behalf of their state or states, the Controller may make a written agreement with the other taxing authorities and with the executor or administrator to submit the controversy to the decision of a board consisting of one or any uneven number of arbitrators (hereafter referred to in this article as “board”). The executor or administrator is hereby authorized to make the agreement. The parties to the agreement shall select the arbitrator or arbitrators.

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 7. Collection of Tax > 7. Uniform Act on Interstate Arbitration of Death Taxes


text: The board shall hold hearings at such times and places as it may determine, upon reasonable notice to the parties to the agreement, all of whom shall be entitled to be heard, to present evidence and to examine and cross-examine witnesses.

article: 7. Uniform Act on Interstate Arbitration of Death Taxes


text: The board shall have power to administer oaths, take testimony, subpoena and require the attendance of witnesses and the production of books, papers and documents, and issue commissions to take testimony. Subpoenas may be signed by any member of the board. In case of failure to obey a subpoena, any judge of a court of record of this state, upon application by the board, may make an order requiring compliance with the subpoena, and the court may punish failure to obey the order as a contempt.


text: The board shall, by majority vote, determine the domicile of the decedent at the time of his or her death. This determination shall be final for purposes of imposing and collecting death taxes but for no other purpose.


text: Except as provided in Section 13820.2 in respect of the issuance of subpoenas, all questions arising in the course of the proceeding shall be determined by majority vote of the board.


text: The Controller, the board, or the executor or administrator shall file the determination of the board as to domicile, the record of the board’s proceedings, and the agreement, or a duplicate, made pursuant to Section 13820, with the authority having jurisdiction to determine the death taxes in the state determined to be the domicile and shall file copies of all such documents with the authorities that would have been empowered to determine the death taxes in each of the other states involved.


text: In any case where it is determined by the board that the decedent died domiciled in this state, interest, if otherwise imposed by law, for nonpayment of death taxes between the date of the agreement and of filing of the determination of the board as to domicile, shall not exceed 10 percent per annum.


text: Nothing contained herein shall prevent at any time a written compromise, if otherwise lawful, by all parties to the agreement made pursuant to Section 13820, fixing the amounts to be accepted by this and any other state involved in full satisfaction of death taxes.


text: The compensation and expenses of the members of the board and its employees may be agreed upon among those members and the executor or administrator and if they cannot agree shall be fixed by the superior court of the state determined by the board to be the domicile of the decedent. The amounts so agreed upon or fixed shall be deemed an administration expense and shall be payable by the executor or administrator.


text: This article shall apply only to cases in which each of the states involved has a law identical with or substantially similar to this act.


text: As used in this article, the word “state” means any state, territory, or possession of the United States, and the District of Columbia.


text: This article may be cited as the “Uniform Act on Interstate Arbitration of Death Taxes.”


text:
For the purposes of this article:

(a) “Executor” means an executor of the will or administrator of the estate of the decedent, but does not include an ancillary administrator nor an administrator with the will annexed if an executor named in the will has been appointed and has qualified in another state.

(b) “Taxing official” means the Controller of the State of California and the designated authority of a reciprocal state.

(c) “Death tax” means any tax levied by a state on account of the transfer or shifting of economic benefits in property at death, or in contemplation thereof, or intended to take effect in possession or enjoyment at or after death, whether denominated an “inheritance tax,” “transfer tax,” “succession tax,” “estate tax,” “death duty,” “death dues,” or otherwise.

(d) “Interested person” means any person who may be entitled to receive, or who has received, any property or interest which may be required to be considered in computing the death tax of any state involved.

(e) “State” means any state, territory, or possession of the United States, or the District of Columbia. “This state” means the State of California.

(f) “Board” means board of arbitration.

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 7. Collection of Tax > 8. Determination of Domicile by Arbitration: Alternative Method


text: In any case in which this state and one or more other states each claims that it was the domicile of a decedent at his or her death, at any time prior to the commencement of legal action for determination of domicile within this state or within 60 days thereafter, any executor, or the taxing official of any such state, may elect to invoke the provisions of this article. That executor or taxing official shall send a notice of that election by registered mail, receipt requested, to the taxing official of each such state and to each executor, ancillary administrator, and interested person. Within 40 days after the receipt of that notice of election, any executor may reject that election by sending a notice, by registered mail, receipt requested, to all persons originally required to be sent a notice of election. When an election has been rejected by an executor, no further proceedings shall be had under this article. If that election is not rejected within the 40-day period, the dispute as to death taxes shall be determined solely as provided in this article. No other proceedings to determine or assess those death taxes shall thereafter be prosecuted in any court of this state or otherwise.

article: 8. Determination of Domicile by Arbitration: Alternative Method


text: In any case in which an election is made and not rejected the Controller may enter into a written agreement with the other taxing officials involved and with the executors to accept a certain sum in full payment of any death taxes, together with interest and penalties, that may be due this state; provided, this agreement fixes the amount to be paid the other states involved in the dispute.


text: If in any case it appears that an agreement cannot be reached, as provided in Section 13830.2, or if one year shall have elapsed from the date of the election without an agreement having been reached, the domicile of the decedent at the time of his or her death shall be determined solely for death tax purposes as provided for in this article.


text: Where only this state and one other state are involved, the Controller and the taxing official of the other state shall each appoint a member of a board of arbitration, and these members shall appoint the third member of the board. If this state and more than one other state are involved, the taxing officials thereof shall agree upon the authorities charged with the duty of administering death tax laws in three states not involved in the dispute and each of these authorities shall appoint a member of the board of arbitration. The board shall select one of its members as chairman.


text: The board shall hold hearings at such places as are deemed necessary, upon reasonable notice to the executors, ancillary administrators, all other interested persons, and to the taxing officials of the states involved, all of whom are entitled to be heard.


text: The board may administer oaths, take testimony, subpoena witnesses and require their attendance, require the production of books, papers and documents, and issue commissions to take testimony. Subpoenas may be issued by any member of the board. Failure to obey a subpoena may be punished by any court of record in the same manner as if the subpoena had been issued by that court.


text: Whenever practicable the board shall apply the rules of evidence then prevailing in the federal courts under the federal rules of civil procedure.


text: The board shall determine the domicile of the decedent at the time of his or her death. This determination is final and conclusive and binds this state, and all of its judicial and administrative officials on all questions concerning the domicile of the decedent for death tax purposes. If the board does not render a determination within one year from the time that it is fully constituted, all authority of the board shall cease and the bar to court proceedings set forth in Section 13830.1 shall no longer exist.


text: The reasonable compensation and expenses of the members of the board and its employees shall be agreed upon among those members, the taxing officials involved, and the executors. If an agreement cannot be reached, compensation and expenses shall be determined by those taxing officials; and, if they cannot agree, by the appropriate probate court of the state determined to be the domicile. That amount shall be borne by the estate and shall be deemed an administration expense.


text: The determination of the board and the record of its proceedings shall be filed with the authority having jurisdiction to assess the death tax in the state determined to be the domicile of the decedent and with the authorities which would have had jurisdiction to assess the death tax in each of the other states involved if the decedent had been found to be domiciled therein.


text: Notwithstanding the commencement of a legal action for determination of domicile within this state or the commencement of an arbitration proceeding, as provided in Section 13830.3, the Controller may in any case enter into a written agreement with the other taxing officials involved and with the executors to accept a certain sum in full payment of any death tax, together with interest and penalties, that may be due this state; provided, this agreement fixes the amount to be paid the other states involved in the dispute, at any time before that proceeding is concluded. Upon the filing of this agreement with the authority which would have jurisdiction to assess the death tax of this state, if the decedent died domiciled in this state, an assessment shall be made as provided in that agreement, and this assessment finally and conclusively fixes the amount of death tax due this state. If the aggregate amount payable under that agreement or under an agreement made in accordance with the provisions of Section 13830.2 to the states involved is less than the minimum credit allowable to the estate against the United States estate tax imposed with respect thereto, the executor forthwith shall also pay to this state the same percentage of the difference between that aggregate amount and the amount of that credit as the amount payable to this state under that agreement bears to that aggregate amount.


text: When in any case the board of arbitration determines that a decedent dies domiciled in this state, the total amount of interest and penalties for nonpayment of the tax, between the date of the election and the final determination of the board, shall not exceed 12 percent of the amount of the taxes per annum.


text: This article shall be applicable only to cases in which each of the states involved in the dispute has in effect therein a law substantially similar hereto. However, nothing contained in this section shall prohibit the application of this article or any part hereof where any of the other states involved in the dispute have in effect therein a law empowering the tax authority to voluntarily enter into a binding arbitration or compromise agreement and such an agreement is so entered into.


text: The superior court which has jurisdiction in probate of the estate of any decedent shall hear and determine all questions relative to any tax imposed by this part, whether the property listed in the estate tax return, or any portion thereof, is in the estate or not.

article: 1. Court Jurisdiction

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 8. Court Jurisdiction and Procedure Generally > 1. Court Jurisdiction


text: In a case where a deceased resident of this state leaves no estate subject to probate administration, the superior court in which the decedent resided at the date of death shall hear and determine all questions relative to any tax imposed by this part.

chapter: 8. Court Jurisdiction and Procedure Generally

article: 1. Court Jurisdiction


text: In the case of a decedent who was not a resident of this state at the time of his or her death, the superior court of the county in which the decedent’s real property is situated, or, if he or she had no real property in this state, the superior court of the county in which any of his or her personal property is situated, has jurisdiction to hear and determine all questions relative to any tax imposed by this part. If the decedent leaves property in more than one county, the superior court of any such county whose jurisdiction is first invoked has exclusive jurisdiction.

article: 1. Court Jurisdiction


text: Except as otherwise provided in this part, the provisions of the Code of Civil Procedure relative to judgments, new trials, appeals, attachments, and execution of judgments, so far as applicable, govern all proceedings under this part.

article: 2. Court Procedure Generally

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 8. Court Jurisdiction and Procedure Generally > 2. Court Procedure Generally


text: Nothing in this article precludes the state from any relief provided for in this part which may be inconsistent with the provisions of the Code of Civil Procedure.

article: 2. Court Procedure Generally


text: The provisions of the Code of Civil Procedure relative to the time of commencing civil actions do not apply to any action or proceeding under this part to levy, appraise, assess, determine, or enforce the collection of any tax, interest, or penalty imposed by this part.

article: 2. Court Procedure Generally


text: No fee shall be charged the Controller for filing, recording, or certifying any petition, lis pendens, decree, or order for taking any oath or acknowledgement, in any proceedings under this part; nor shall any undertaking be required from the Controller or the state in any such proceeding.

article: 2. Court Procedure Generally


text: This part shall be administered by the Controller.

chapter: 9. Administration

article: 1. Generally

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 9. Administration > 1. Generally


text: The Controller may employ those assistants, including attorneys, as may from time to time be necessary for the proper administration of this part.

article: 1. Generally


text: The Controller may make and enforce rules and regulations relating to the administration and enforcement of this part, and may prescribe the extent, if any, to which any ruling or regulation shall be applied without retroactive effect.

article: 1. Generally


text: The Controller shall, without charge, distribute a copy of this part to any person who requests it.

article: 1. Generally


text:
Whenever he or she is cited as a party to any proceeding or action to determine any tax imposed by this part, or whenever he or she deems it necessary for the better enforcement of this part to secure evidence of the evasion of, or to commence or appear in any proceeding or action to determine, any such tax, the Controller may, with the consent and approval of the Attorney General:

(a) Specially employ any attorney or other person in or out of the state to act for or represent him or her on the state’s behalf.

(b) Incur any reasonable and necessary expense for and incident to the employment.

article: 2. Special Employment

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 9. Administration > 2. Special Employment


text: The Controller may conduct a hearing at any time or place for the purpose of determining whether a tax is due under this part.

article: 3. Hearings

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 9. Administration > 3. Hearings


text:
For purposes of the hearing referred to in Section 14201, the Controller has all of the following:

(a) Jurisdiction to require the attendance before him or her of any person who he or she may have reason to believe possesses knowledge of any facts that will aid the Controller in the determination of the tax.

(b) All the powers of a referee of the superior court.

article: 3. Hearings


text:
The Controller may issue subpoenas for any of the following purposes:

(a) Compelling the attendance of any person before him or her or the production of books and papers.

(b) Determining the amount of any tax due.

article: 3. Hearings


text: On the filing by the Controller of a petition asking the court to do so, the superior court of the county in which a hearing is held may compel compliance with any subpoena issued by the Controller.

article: 3. Hearings


text: The Controller may examine and take the testimony under oath of any person appearing before him or her concerning the determination of any tax due under this part.

article: 3. Hearings


text: Any person compelled to attend a hearing before the Controller is entitled to fees for attendance in an amount to be determined by the Controller, and to his or her expenses of attendance. The fees and expenses are a part of the cost of administering this part.

article: 3. Hearings


text:
All information and records acquired by the Controller or any of his or her employees are confidential in nature, and except insofar as may be necessary for the enforcement of this part or as may be permitted by this article, shall not be disclosed by any of them.

Except insofar as may be necessary for the enforcement of this part or as may be permitted by this article, any former or incumbent Controller or employee of the Controller who discloses any information acquired by any inspection or examination made pursuant to this article is guilty of a felony, and upon conviction shall be imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code.

history: (History: Amended by Stats. 2011, Ch. 15, Sec. 569. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.)

article: 4. Information Confidential

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 9. Administration > 4. Information Confidential


text: The Controller may allow any local, state, or federal official charged with the administration of any tax law to examine his or her estate tax records under those rules and regulations as he or she may prescribe.

article: 4. Information Confidential


text: All taxes and other money collected under this part and received by the Treasurer shall be deposited in the State Treasury to the credit of the Estate Tax Fund, which fund is hereby created.

chapter: 10. Disposition of Proceeds

path: 2. OTHER TAXES > 8. PROHIBITION OF GIFT AND DEATH TAXES > 10. Disposition of Proceeds


text:
The money in the Estate Tax Fund is hereby appropriated as follows:

(a) To pay the refunds authorized by this part and by Part 9.5 (commencing with Section 16700).

(b) The balance of the money in the fund shall, on order of the Controller, be transferred to the unappropriated surplus in the State General Fund.


text: This part is known as the “Generation Skipping Transfer Tax Law.”

history: (History: Added by Stats. 1977, Ch. 1079.)

part: 9.5. GENERATION SKIPPING TRANSFER TAX

chapter: 1. Definitions

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 1. Definitions


text: Except where the context otherwise requires, the definitions given in this chapter govern the construction of this part.


text: “Generation-skipping transfer” includes every transfer subject to the tax imposed under Chapter 13 of Subtitle B of the Internal Revenue Code of 1986, as amended, where the original transferor is a resident of the State of California at the date of original transfer, or the property transferred is real or personal property in California.

history: (History: Amended by Stats. 1987, Ch. 1138, Sec. 2. Effective September 25, 1987.)


text: “Original transferor” means any grantor, donor, trustor or testator who by grant, gift, trust or will makes a transfer of real or personal property that results in a federal generation skipping transfer tax under applicable provisions of the Internal Revenue Code.


text: “Federal generation-skipping transfer tax” means the tax imposed by Chapter 13 of Subtitle B of the Internal Revenue Code of 1986, as amended.

history: (History: Amended by Stats. 1987, Ch. 1138, Sec. 3. Effective September 25, 1987.)


text:
(a) A tax is hereby imposed upon every generation-skipping transfer in an amount equal to the amount allowable as a credit for state generation-skipping transfer taxes under Section 2604 of the Internal Revenue Code.

(b) If any of the property transferred is real property in another state or personal property having a business situs in another state which requires the payment of a tax for which credit is received against the federal generation-skipping transfer tax, any tax due pursuant to subdivision (a) of this section shall be reduced by an amount which bears the same ratio to the total state tax credit allowable for federal generation-skipping transfer tax purposes as the value of such property taxable in such other state bears to the value of the gross generation-skipping transfer for federal generation skipping transfer tax purposes.

history: (History: Amended by Stats. 1987, Ch. 1138, Sec. 4. Effective September 25, 1987.)

chapter: 2. Imposition of the Tax

article: 1. Tax Imposed

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 2. Imposition of the Tax > 1. Tax Imposed


text:
Every person required to file a return reporting a generation skipping transfer under applicable federal statute and regulations shall file a return with the State Controller on or before the last day prescribed for filing the federal return.

There shall be attached to the return filed with the Controller a duplicate copy of the federal return.

article: 2. Returns

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 2. Imposition of the Tax > 2. Returns


text:
The return shall contain such information and be in such form as the Controller may prescribe and shall state the amount of tax due under the provisions of this part.

The return shall contain, or be verified by, a written declaration that it is made under the penalties of perjury.

article: 2. Returns


text: If, after the filing of a duplicate return, the federal authorities shall increase or decrease the amount of the federal generation skipping transfer tax, an amended return shall be filed with the State Controller showing all changes made in the original return and the amount of increase or decrease in the federal generation skipping transfer tax.

article: 2. Returns


text:
In a case not involving a false or fraudulent return or failure to file a return, if the Controller determines at any time after the tax is due, but not later than four years after the return is filed, that the tax disclosed in any return required to be filed by this part is less than the tax disclosed by his examination, a deficiency shall be determined; provided that in a case where the federal generation skipping transfer tax has been increased upon audit of the federal return, the determination may be made at any time within one year after the federal generation skipping transfer tax becomes final.

For the purposes of this section, a return filed before the last day prescribed by law for filing such return shall be considered as filed on such last day.

article: 3. Deficiency Determination

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 2. Imposition of the Tax > 3. Deficiency Determination


text: In the case of a false or fraudulent return or failure to file a return, the Controller may determine the tax at any time.

article: 3. Deficiency Determination


text: In any case in which a deficiency has been determined in an erroneous amount, the Controller may, within three years after the erroneous determination was made, set aside the determination or issue an amended determination in the correct amount.

article: 3. Deficiency Determination


text: The Controller shall give notice of the deficiency determined, together with any penalty for failure to file a return or to show any transfer in the return filed, by personal service or by mail to the person filing the return at the address stated in the return, or, if no return is filed, to the person liable for the tax. Copies of the notice of deficiency may in like manner be given to such other persons as the Controller deems advisable.

article: 3. Deficiency Determination


text: In any case in which it is claimed that a deficiency has been determined in an erroneous amount, any person who is liable for the tax may, within three years after the determination was made, bring an action against the state in the superior court having jurisdiction to have the tax modified in whole or in part.

article: 3. Deficiency Determination


text: The person liable for payment of the federal generation skipping transfer tax shall be liable for the tax imposed by this part.

chapter: 3. Payment of Tax

article: 1. Generally

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 3. Payment of Tax > 1. Generally


text: The tax imposed by this part is due upon a taxable distribution or a taxable termination as determined under applicable provisions of the federal generation skipping transfer tax.

article: 1. Generally


text: The tax becomes delinquent from and after the last day allowed for filing a return for the generation skipping transfer.

article: 1. Generally


text: The tax shall be paid to the State Controller by remittance payable to the State Treasurer.

article: 1. Generally


text: If the tax is not paid before it becomes delinquent, it bears interest thereafter and until it is paid at the same rate per annum as provided in Section 6621(a)(2) of the Internal Revenue Code, compounded daily.

history: (History: Amended by Stats. 2000, Ch. 363, Sec. 8. Effective September 8, 2000. Operative January 1, 2001, by Sec. 11 of Ch. 363.)

article: 2. Interest and Penalties

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 3. Payment of Tax > 2. Interest and Penalties


text: Every payment on the tax imposed by this part is applied, first, to any interest due on the tax, and then, if there is any balance, to the tax itself.

article: 2. Interest and Penalties


text: The state may enforce its claim for any tax imposed by this part and enforce the lien of the tax by a civil action in any court of competent jurisdiction against any person liable for the tax or against any property subject to the lien.

chapter: 4. Collection of Tax

article: 1. Suit for Tax

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 4. Collection of Tax > 1. Suit for Tax


text: The tax imposed by this part is a lien in the manner prescribed in Section 13610 upon the property transferred from the time the generation skipping transfer is made and until the expiration of 10 years from and after the time a deficiency determination is issued pursuant to the provisions of this part or until the tax is paid, whichever is earlier.

history: (History: Amended by Stats. 1987, Ch. 894, Sec. 2.)

article: 2. Lien of Tax

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 4. Collection of Tax > 2. Lien of Tax


text: At any time after a tax imposed by this part is delinquent, the Controller may have a writ of execution issued for the enforcement of any judgment rendered pursuant to this part in respect to the tax.

article: 3. Writ of Execution

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 4. Collection of Tax > 3. Writ of Execution


text: The writ shall be executed against any property of any person liable for the tax, or against any property subject to the lien of the tax.

article: 3. Writ of Execution


text: Proceedings for the collection of any tax imposed by this part may be commmenced at any time after the tax is due and within 10 years from and after the time a deficiency determination is issued pursuant to the provisions of this part.

article: 4. Miscellaneous

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 4. Collection of Tax > 4. Miscellaneous


text: If the Controller finds that there has been an overpayment of tax by a taxpayer for any reason, the amount of the overpayment shall be refunded to the taxpayer.

chapter: 5. Refunds

article: 1. When Allowable

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 5. Refunds > 1. When Allowable


text: No refund shall be allowed or made after four years from the last day prescribed for filing the return or after one year from the date of the overpayment, whichever period expires the later, unless before the expiration of such period a claim therefor is filed by the taxpayer, or unless before the expiration of such period the Controller makes a refund. A claim for refund may be filed in such form as the Controller may prescribe, and the Controller shall allow or deny the claim, in whole or in part, and mail a notice of such determination to the claimant at the address stated on the claim.

article: 1. When Allowable


text: Any person who has paid any tax imposed by this part which later is determined by judgment to have been in excess of the amount legally due, or an heir, the executor of the will, or the administrator of the estate of any such person, but not his assignee, is entitled to a refund in the amount of the excess paid within one year after the judgment becomes final.

article: 1. When Allowable


text: Within four years from the last date prescribed for filing the return or within one year from the date the tax was paid, or within 90 days after a determination under Section 16851 is issued, whichever is later, any person who has paid the tax may bring an action against the state in the superior court having jurisdiction to have the tax refunded, in whole or in part.

article: 2. Suit for Refund

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 5. Refunds > 2. Suit for Refund


text: Process in the action directed to the state shall be served on the Controller.

article: 2. Suit for Refund


text: After a hearing in which the Controller shall represent the state, the court shall review the Controller’s appraisement and determination of tax, and, as the case may require, shall by judgment modify or confirm the appraisement or determination in whole or in part.

article: 2. Suit for Refund


text: Interest shall be allowed and paid upon any overpayment of tax due under this part in the same manner as provided in Section 6621(a)(1) and 6622 of the Internal Revenue Code.

history: (History: Amended by Stats. 2000, Ch. 363, Sec. 9. Effective September 8, 2000. Operative January 1, 2001, by Sec. 11 of Ch. 363.)

article: 3. Interest on Refunds

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 5. Refunds > 3. Interest on Refunds


text: The superior court of the county in which a transferor resident of this state resided at the date of any generation skipping transfer made by him has jurisdiction to hear and determine all questions relative to any tax imposed by this part on the gift.

article: 1. Court Jurisdiction

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 6. Court Jurisdiction and Procedure Generally > 1. Court Jurisdiction


text: In the case of a transferor who was not a resident of this state at the date of any generation skipping transfer made by him, the superior court of the county in which any of the transferor’s real property is situated, or, if he has no real property in this state, the superior court of the county in which any of his personal property is situated, has jurisdiction to hear and determine all questions relative to any tax imposed by this part. If the transferor has property in more than one county, the superior court of any such county whose jurisdiction is first invoked has exclusive jurisdiction.

chapter: 6. Court Jurisdiction and Procedure Generally

article: 1. Court Jurisdiction


text: Except as otherwise provided in this part, the provisions of the Code of Civil Procedure relative to judgments, new trials, appeals, attachments and execution of judgments, so far as applicable, govern all proceedings under this part.

article: 2. Court Procedure Generally

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 6. Court Jurisdiction and Procedure Generally > 2. Court Procedure Generally


text: This part is administered by the Controller.

history: (History: Amended by Stats. 1983, Ch. 407, Sec. 5.)

chapter: 7. Administration

article: 1. Generally

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 7. Administration > 1. Generally


text: The Controller may employ such assistants, including attorneys, as may from time to time be necessary for the proper administration of this part.

article: 1. Generally


text: The Controller may make and enforce rules and regulations relating to the administration and enforcement of this part, and may prescribe the extent, if any, to which any ruling or regulation shall be applied without retroactive effect.

article: 1. Generally


text: Under rules and regulations upon which the Controller and Franchise Tax Board may agree, the Franchise Tax Board shall cooperate in the enforcement of this part by reporting to the Controller any changes in the gross or net income of any person, or any other information obtained in the enforcement of any act administered by the Franchise Tax Board which may in any way indicate that a transfer has been made which is taxable under this part.

article: 1. Generally


text: Under rules and regulations upon which the Controller and State Board of Equalization may agree, the State Board of Equalization shall cooperate in the enforcement of this part by reporting to the Controller any information obtained in the enforcement of any act administered by the State Board of Equalization which may in any way indicate that a transfer has been made which is taxable under this part.

article: 1. Generally


text: The Controller on his own motion may appear in behalf of the state in any and all generation skipping transfer tax matters before any court.

article: 1. Generally


text:
All information and records acquired by the Controller or any of his employees are confidential in nature, and, except insofar as may be necessary for the enforcement of this part or as may be permitted by this article, shall not be disclosed by any of them.

Except insofar as may be necessary for the enforcement of this part or as may be permitted by this article, any former or incumbent Controller or employee of the Controller who discloses any information acquired by any inspection or examination made pursuant to this article is guilty of a felony, and upon conviction shall be imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code.

history: (History: Amended by Stats. 2011, Ch. 15, Sec. 570. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.)

article: 2. Inspection of Records

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 7. Administration > 2. Inspection of Records


text: The Controller may allow any local, state, or federal official charged with the administration of any tax law to examine his generation skipping transfer tax records under such rules and regulations as he may prescribe.

article: 2. Inspection of Records


text: All money due under this part shall be paid to the Controller by remittance payable to the State Treasurer. The amounts received shall be deposited, after clearance of remittance, in the State Treasury to the credit of the Estate Tax Fund.

history: (History: Amended by Stats. 1983, Ch. 407, Sec. 6.)

chapter: 8. Disposition of Proceeds

path: 2. OTHER TAXES > 9.5. GENERATION SKIPPING TRANSFER TAX > 8. Disposition of Proceeds


text: This part is known and may be cited as the “Personal Income Tax Law.”

history: (History: Repealed and added by Stats. 1955, Ch. 939.)

part: 10. PERSONAL INCOME TAX

chapter: 1. General Provisions and Definitions

path: 2. OTHER TAXES > 10. PERSONAL INCOME TAX > 1. General Provisions and Definitions


text: Except where the context otherwise requires, the definitions given in this chapter govern the construction of this part.


text: “Franchise Tax Board” means the Franchise Tax Board described in Part 10, Division 3, Title 2 of the Government Code. “Board” means the State Board of Equalization.


text: “Taxpayer” includes any individual, fiduciary, estate, or trust subject to any tax imposed by this part or any partnership.

history: (History: Amended by Stats. 1996, Ch. 952, Sec. 2. Effective January 1, 1997.)


text: “Individual” means a natural person.


text: “Fiduciary” means a guardian, trustee, executor, administrator, receiver, conservator, or any person, whether individual or corporate, acting in any fiduciary capacity for any person, estate or trust.


text: “Person” includes individuals, fiduciaries, partnerships, limited liability companies, and corporations.

history: (History: Amended by Stats. 1994, Ch. 1200, Sec. 51. Effective September 30, 1994.)


text:
“Partnership” includes a syndicate, group, pool, joint venture, or other unincorporated organization, through or by means of which any business, financial operation, or venture is carried on, and which is not, within the meaning of this part, a trust or estate or a corporation.

“Partner” includes a member in such a syndicate, group, pool, joint venture, or organization.

A person shall be recognized as a partner for income purposes if he owns a capital interest in a partnership in which capital is a material income-producing factor, whether or not such interest was derived by purchase or gift from any other person.


text:
Section 7704 of the Internal Revenue Code, relating to certain publicly traded partnerships treated as corporations, shall apply, except as otherwise provided.

(a) Section 7704(a) of the Internal Revenue Code shall not apply to an electing 1987 partnership, as defined in Section 23038.5, which is subject to the tax imposed by Section 23038.5.

(b) The amendment made to this section by Chapter 611 of the Statutes of 1997 shall apply to taxable years beginning on or after January 1, 1998.

(c) Section 7704(d) of the Internal Revenue Code, relating to qualifying income, shall apply, except as otherwise provided, without regard to taxable year to the same extent as applicable for federal income tax purposes.

(d) The amendment to this section by the act amending this subdivision shall apply to taxable years beginning on or after January 1, 2010.

history: (History: Amended by Stats. 2010, Ch. 14, Sec. 1. (SB 401) Effective January 1, 2011. Applicable from January 1, 2010, as provided in subd. (d).)


text: “Corporation” includes joint stock companies or associations (including nonprofit associations that perform services, borrow money or own property, and business trusts or other business entities taxable as a corporation under regulations of the Franchise Tax Board) and insurance companies. “Corporation” also includes a trust organized and operated exclusively for purposes contained in Section 23701d.

history: (History: Amended by Stats. 1997, Ch. 608, Sec. 1. Effective October 3, 1997.)


text:
“Taxable year” means the calendar year or the fiscal year upon the basis of which the taxable income is computed under this part. If no fiscal year has been established, “taxable year” means the calendar year.

“Taxable year” means, in the case of a return made for a fractional part of a year under this part or under regulations prescribed by the Franchise Tax Board, the period for which the return is made.


text: “Fiscal year” means an accounting period of 12 months ending on the last day of any month other than December.


text: “Paid or incurred” and “paid or accrued” shall be construed according to the method of accounting upon the basis of which the taxable income is computed under this part.


text:
(a) “Resident” includes:

(1) Every individual who is in this state for other than a temporary or transitory purpose.

(2) Every individual domiciled in this state who is outside the state for a temporary or transitory purpose.

(b) Any individual (and spouse) who is domiciled in this state shall be considered outside this state for a temporary or transitory purpose while that individual:

(1) Holds an elective office of the government of the United States, or

(2) Is employed on the staff of an elective officer in the legislative branch of the government of the United States as described in paragraph (1), or

(3) Holds an appointive office in the executive branch of the government of the United States (other than the armed forces of the United States or career appointees in the United States Foreign Service) if the appointment to that office was by the President of the United States and subject to confirmation by the Senate of the United States and whose tenure of office is at the pleasure of the President of the United States.

(c) Any individual who is a resident of this state continues to be a resident even though temporarily absent from the state.

(d) For any taxable year beginning on or after January 1, 1994, any individual domiciled in this state who is absent from the state for an uninterrupted period of at least 546 consecutive days under an employment-related contract shall be considered outside this state for other than a temporary or transitory purpose.

(1)For purposes of this subdivision, returns to this state, totaling in the aggregate not more than 45 days during a taxable year, shall be disregarded.

(2)This subdivision shall not apply to any individual, including any spouse described in paragraph (3), who has income from stocks, bonds, notes, or other intangible personal property in excess of two hundred thousand dollars ($200,000) in any taxable year in which the employment-related contract is in effect. In the case of an individual who is married, this paragraph shall be applied to the income of each spouse separately.

(3)Any spouse who is absent from the state for an uninterrupted period of at least 546 consecutive days to accompany a spouse who, under this subdivision, is considered outside this state for other than a temporary or transitory purpose shall, for purposes of this subdivision, also be considered outside this state for other than a temporary or transitory purpose.

(4) This subdivision shall not apply to any individual if the principal purpose of the individual’s absence from this state is to avoid any tax imposed by this part.

history: (History: Amended by Stats. 1994, Ch. 1243, Sec. 4. Effective September 30, 1994.)


text: “Nonresident” means every individual other than a resident.


text:
For purposes of Part 10.2 (commencing with Section 18401) and this part, the term “part-year resident” means a taxpayer who meets both of the following conditions during the same taxable year.

(a) Is a resident of this state during a portion of the taxable year.

(b) Is a nonresident of this state during a portion of the taxable year.

history: (History: Added by Stats. 2001, Ch. 920, Sec. 1. Effective January 1, 2002.)


text: Every individual who spends in the aggregate more than nine months of the taxable year within this State shall be presumed to be a resident. The presumption may be overcome by satisfactory evidence that the individual is in the State for a temporary or transitory purpose.


text: “United States,” when used in a geographical sense, includes the states, the District of Columbia, and the possessions of the United States.

history: (History: Amended by Stats. 1961, Ch. 537.)


text: “State” includes the District of Columbia, and the possessions of the United States.


text: “Foreign country” means any jurisdiction other than one embraced within the United States.


text: “Trade or business” includes the performance of the functions of a public office.


text: For purposes of this part, the term “substituted basis property” has the same meaning given that term by Section 7701(a)(42) of the Internal Revenue Code.

history: (History: Added by Stats. 1987, Ch. 1138, Sec. 5. Effective September 25, 1987. Applicable to taxable years beginning on or after January 1, 1987, by Sec. 189 of Ch. 1138.)


text: For purposes of this part, the term “transferred basis property” has the same meaning given that term by Section 7701(a)(43) of the Internal Revenue Code, except that reference to Subtitle A shall instead be a reference to this part.

history: (History: Added by Stats. 1987, Ch. 1138, Sec. 6. Effective September 25, 1987. Applicable to taxable years beginning on or after January 1, 1987, by Sec. 189 of Ch. 1138.)