Old state tax penalties and interest expire with the tax debt they belong to
Interest, penalties, costs and fees tied to a state income or corporate tax bill no longer count as separate tax debts. The Franchise Tax Board's 20-year collection window for them now closes at the same time as the window for the tax itself.
Who it affects
People and businesses with old state income or franchise tax debts
When
This law takes effect on January 1, 2027. California laws take effect on January 1 of the year after they are signed, unless the law says otherwise.
- : Signed into law
- : This law takes effect
Official text
California AB 1519: Taxation: tax liability: collections.
On California Legislative Information. The official text is what counts; read it before you act.
Not legal advice. Plain-English summaries to help you find what changes and when. Not legal advice: read the official text, and ask a lawyer about your situation.