Section 19226 Of Article 2. Lien Of Tax From California Revenue And Taxation Code >> Division 2. >> Part 10.2. >> Chapter 5. >> Article 2.
19226
. (a) At the request of the owner whose property is subject to
any lien under Section 19221, the Franchise Tax Board shall issue a
release of lien from that property if the owner is not the person
whose unsatisfied liability gave rise to the lien and the owner does
either of the following:
(1) Deposits with the Franchise Tax Board an amount of money equal
to the value of the interest of the state (as determined by the
Franchise Tax Board) in the property.
(2) Furnishes a bond acceptable to the Franchise Tax Board in a
like amount.
(b) The Franchise Tax Board shall refund the amount so deposited,
pay interest at the overpayment rate under Section 19521, and release
the bond, to the extent the Franchise Tax Board determines that
either of the following apply:
(1) The unsatisfied liability giving rise to the lien can be
satisfied from a source other than the property for which the deposit
or bond is made.
(2) The value of the interest of the state in the property is less
than the Franchise Tax Board's prior determination of the value.
(c) If no request is made under subdivision (d), within the period
prescribed, the Franchise Tax Board shall do both of the following
within 60 days after the expiration of the period:
(1) Apply the amount deposited or collected on the bond, to the
extent necessary to satisfy the unsatisfied liability secured by the
lien.
(2) Refund (with interest at the overpayment rate under Section
19521) any portion of the amount deposited which is not used to
satisfy the liability.
(d) If a release is issued pursuant to this section, the owner
may, within 60 days after the day on which the release is issued,
request the Franchise Tax Board as provided under subdivision (f) to
determine whether the value of the interest of the state (if any) is
less than the Franchise Tax Board's prior determination of the value.
No other action may be brought by the owner for a determination.
(e) This section shall not limit the circumstances in which the
Franchise Tax Board may release a lien under any circumstances to
facilitate the collection of the tax liability or, if that release is
in the best interest of the taxpayer and the state, take any action
associated with the release of that lien it deems appropriate.
(f) The Taxpayers' Rights Advocate shall establish procedures for
an independent departmental administrative review for requests made
under subdivision (d). This administrative review shall not be
subject to Chapter 4.5 (commencing with Section 11400) of Part 1 of
Division 3 of the Government Code. If the administrative review
determines that the Franchise Tax Board's previous determination of
the value of the interest of the state in the property for purposes
of this section exceeds the actual value of the state's interest, the
board shall provide a refund of the amount deposited and a release
of the bond, to the extent that the aggregate of the amounts thereof
exceeds the value so determined. In the case of a refund issued
pursuant to this subdivision, interest shall be allowed at the rate
prescribed for overpayments from the date the Franchise Tax Board
receives the amount to the date of refund.
(g) This section shall be operative on the effective date of the
act adding this section.