California 2021-2022 Regular Session Status: Enacted

AB 1582 — Income taxes: withholding: real property sales: Katz-Harris Taxpayers' Bill of Rights Act: report.

Last action — Chaptered by Secretary of State - Chapter 66, Statutes of 2021.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 10, 2021. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 5 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

(1) Existing law generally requires the transferee of a California real property interest, in specified circumstances, to withhold for income tax purposes 313% of the sales price of the property when the property is acquired from either an individual, or a partnership or corporation without a permanent place of business, as specified. Under existing law, a transferee is not required to withhold any amount under these provisions if the transferee, in good faith and based upon the information of which the transferee has knowledge, certifies under penalty of perjury that the California real property being conveyed is either (A) the seller's or decedent's principal residence, as specified, or (B) is being exchanged, or will be exchanged, for property of like kind, but only to the extent of the amount of the gain not required to be recognized for California income or franchise tax purposes, as specified. In the case of a real property sale not subject to withholding by reason of a like kind exchange under these provisions, existing law requires the transferee to notify the Franchise Tax Board in writing within 10 days of the expiration of the statutory periods specified in federal law and thereafter remit the applicable withholding amounts determined as provided. This bill, with respect to dispositions of California real property interests that occur on or after January 1, 2022, would provide that the transferee is required to notify the Franchise Tax Board and remit the applicable withholding amount, as described above, only to the extent that an intermediary or accommodator has received amounts from the disposition of California real property and has not disbursed those amounts for the purpose of completing an exchange or exchanges, as specified. The bill would authorize the Franchise Tax Board to prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of these provisions and exempt those rules, guidelines, procedures, or other guidance from the rulemaking provisions of the Administrative Procedure Act. (2) The Katz-Harris Taxpayers' Bill of Rights Act requires the Franchise Tax Board to establish the position of the Taxpayers' Rights Advocate and makes the advocate or their designee responsible for coordinating the resolution of taxpayer complaints and problems, including any taxpayer complaints regarding unsatisfactory treatment of taxpayers by board employees. Existing law requires the board, in consultation with the Taxpayers' Rights Advocate, to develop and implement a taxpayer education and information program directed at, but not limited to, identifying forms, procedures, regulations, or laws which are confusing and lead to taxpayer errors. Existing law requires the board to perform annually a systematic identification of areas of recurrent taxpayer noncompliance and report its findings to the Legislature on December 1 of each year. This bill, instead, would require the Franchise Tax Board to submit that report by January 15 of each year.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 66, Statutes of 2021.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3:30 p.m.

  4. In Assembly. Ordered to Engrossing and Enrolling.

  5. Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 1635.).

  6. Read second time. Ordered to Consent Calendar.

  7. From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar.

  8. From committee: Do pass and re-refer to Com. on APPR with recommendation: To Consent Calendar. (Ayes 5. Noes 0.) (June 10). Re-referred to Com. on APPR.

  9. Referred to Com. on GOV. & F.

  10. In Senate. Read first time. To Com. on RLS. for assignment.

  11. Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 1253.)

  12. Read second time. Ordered to Consent Calendar.

  13. From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (April 21).

  14. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (April 12). Re-referred to Com. on APPR.

  15. Referred to Com. on REV. & TAX.

  16. From printer. May be heard in committee April 10.

  17. Read first time. To print.

Sponsors

  • Committee on Revenue and Taxation · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Committee on Revenue and Taxation

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Consent Calendar AB1582 REV. & TAX.

Passed 39 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 23000
Republican 4000
Democratic 12001
Total 39001
% of votes cast 98%0%0%3%
How each member voted (40)
Member Party Vote
Bradford — Yea
Atkins — Yea
Newman — Yea
Skinner — Yea
Hertzberg — Yea
Melendez — Yea
Eggman — Yea
Portantino — Yea
Wilk — Yea
Nielsen — Yea
Glazer — Yea
Min — Yea
Wieckowski — Yea
Hueso — Yea
Gonzalez — Yea
Kamlager — Yea
Pan — Yea
Bates — Yea
Roth — Yea
Leyva — Yea
Dodd — Yea
Rubio — Yea
Borgeas — Yea
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Becker, Josh Democratic Yea
Caballero, Anna M. Democratic Not Voting
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Hurtado, Melissa Democratic Yea
Laird, John Democratic Yea
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Ochoa Bogh, Rosilicie Republican Yea

Official roll call →

AB 1582 REV. & TAX. Consent Calendar Second Day

Passed 77 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 40001
Republican 10000
Democratic 27000
Total 77001
% of votes cast 99%0%0%1%
How each member voted (78)
Member Party Vote
Maienschein — Yea
Rodriguez — Yea
Kiley — Yea
Nazarian — Yea
Ting — Yea
O'Donnell — Yea
Waldron — Yea
Medina — Yea
McCarty — Yea
Friedman — Yea
Bigelow — Yea
Chiu — Yea
Rendon — Yea
Bloom — Yea
Mullin — Yea
Holden — Yea
Jones-Sawyer — Yea
Wood — Yea
Smith — Yea
Cunningham — Yea
Cooper — Yea
Voepel — Yea
Cooley — Yea
Villapudua — Yea
Salas — Yea
Quirk — Yea
Low — Yea
Levine — Yea
Daly — Yea
Gray — Yea
Burke — Yea
Mathis — Yea
Santiago — Yea
Mayes — Yea
Frazier — Yea
Chau — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Lorena Gonzalez — Yea
Luz Rivas — Not Voting
Mark Stone — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Cervantes, Sabrina Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Lee, Alex Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Ward, Christopher M. Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Davies, Laurie Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea
Patterson, Joe Republican Yea
Seyarto, Kelly Republican Yea
Valladares, Suzette Martinez Republican Yea

Official roll call →

Do pass. To Consent Calendar.

Passed 14 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 6002
Democratic 6000
Republican 2000
Total 14002
% of votes cast 88%0%0%13%
How each member voted (16)
Member Party Vote
Levine — Yea
Friedman — Yea
Quirk — Yea
Bigelow — Yea
Chau — Yea
McCarty — Not Voting
Eduardo Garcia — Not Voting
Lorena Gonzalez — Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Rivas, Robert Democratic Yea
Ward, Christopher M. Democratic Yea
Dahle, Megan Republican Yea
Davies, Laurie Republican Yea

Official roll call →

Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar

Passed 9 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 5002
Democratic 3000
Republican 1000
Total 9002
% of votes cast 82%0%0%18%
How each member voted (11)
Member Party Vote
Mullin — Yea
Burke — Yea
Levine — Yea
Quirk — Yea
Gray — Not Voting
Mayes — Not Voting
Luz Rivas — Yea
Grayson, Timothy S. Democratic Yea
Nguyen, Stephanie Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Seyarto, Kelly Republican Yea

Official roll call →

Subjects

taxation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does AB 1582 do?
(1) Existing law generally requires the transferee of a California real property interest, in specified circumstances, to withhold for income tax purposes 313% of the sales price of the property when the property is acquired from either an individual, or a partnership or corporation without a permanent place of business, as specified. Under existing law, a transferee is not required to withhold any amount under these provisions if the transferee, in good faith and based upon the information of which the transferee has knowledge, certifies under penalty of perjury that the California real property being conveyed is either (A) the seller's or decedent's principal residence, as specified, or (B) is being exchanged, or will be exchanged, for property of like kind, but only to the extent of the amount of the gain not required to be recognized for California income or franchise tax purposes, as specified. In the case of a real property sale not subject to withholding by reason of a like kind exchange under these provisions, existing law requires the transferee to notify the Franchise Tax Board in writing within 10 days of the expiration of the statutory periods specified in federal law and thereafter remit the applicable withholding amounts determined as provided. This bill, with respect to dispositions of California real property interests that occur on or after January 1, 2022, would provide that the transferee is required to notify the Franchise Tax Board and remit the applicable withholding amount, as described above, only to the extent that an intermediary or accommodator has received amounts from the disposition of California real property and has not disbursed those amounts for the purpose of completing an exchange or exchanges, as specified. The bill would authorize the Franchise Tax Board to prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of these provisions and exempt those rules, guidelines, procedures, or other guidance from the rulemaking provisions of the Administrative Procedure Act. (2) The Katz-Harris Taxpayers' Bill of Rights Act requires the Franchise Tax Board to establish the position of the Taxpayers' Rights Advocate and makes the advocate or their designee responsible for coordinating the resolution of taxpayer complaints and problems, including any taxpayer complaints regarding unsatisfactory treatment of taxpayers by board employees. Existing law requires the board, in consultation with the Taxpayers' Rights Advocate, to develop and implement a taxpayer education and information program directed at, but not limited to, identifying forms, procedures, regulations, or laws which are confusing and lead to taxpayer errors. Existing law requires the board to perform annually a systematic identification of areas of recurrent taxpayer noncompliance and report its findings to the Legislature on December 1 of each year. This bill, instead, would require the Franchise Tax Board to submit that report by January 15 of each year.
Who sponsors AB 1582?
AB 1582 is sponsored by Committee on Revenue and Taxation.
What is the current status of AB 1582?
This bill has been enacted into law. Introduced March 10, 2021. Enacted.
Where can I track AB 1582?
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