Special Notice / Hearing: None
Vote Required: Majority
To: Honorable Board of Supervisors
From: Sandie Arnott, Treasurer-Tax Collector
Subject: Agreement with the State of California Franchise Tax Board
RECOMMENDATION:
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Adopt a resolution authorizing an agreement with the State of California Franchise Tax Board to provide collection services for unpaid court ordered fines, forfeitures, and penalties from January 1, 2018 to December 31, 2020.
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BACKGROUND:
The Revenue Services Division of the Treasurer-Tax Collector Department recovers funds due to the County from individuals for services rendered and for court-ordered payments. In an effort to reduce the amount of court-ordered debt owed in the state, the California legislature authorized the Franchise Tax Board (FTB) and county superior, municipal, and justice courts to form partnerships to collect court-ordered debts. FTB collects criminal fines, penalties, forfeitures, and restitution orders, as well as most Vehicle Code violations. FTBs Court-Ordered Debt Collection program is authorized under Section 19280 of the California Revenue and Taxation code. As part of the County's collection effort, Revenue Services refers accounts to external collection agencies when County collection efforts have been exhausted. External collectors such as the State have access to information databases for locating debtors that the County does not have. In this way, the County assures that all practical efforts at collection have been pursued.
DISCUSSION:
The Board of Supervisors has authorized Revenue Services to enter into identical or substantially similar contracts with the FTB for approximately 15 years. In locating an individual's assets, FTB has the ability to search through income records, including wage information on all California employees and interest and dividend information on all California accounts. Once assets are located, FTB can issue levies that are not limited by intrastate juri...
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