Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2010
 

Tax on Insurers Law

Chapter 4. Assessment and Effect of Tax*

Article 4. Effect of Tax

Section 12491

12491. Lien of tax. (a) Every tax levied upon an insurer underdeletion Article XIII of the California Constitution anddeletion this part is a lien upon all property and franchises of every kind and nature belonging to the insurer, and has the effect of a judgment against the insurer.

(b) (1) Every tax levied upon a surplus line broker under deletionPart 7.5 (commencing with Section 13201) of Division 2 is a lien upon all property and franchises of every kind and nature belonging to the surplus line broker, and has the effect of a judgment against the surplus line broker.

(2) A lien levied pursuant to this subdivision shall not exceed the amount of unpaid tax collected by the surplus line broker.

(c) (1) Every tax levied upon a Medi-Cal managed care plan under Chapter 1 (commencing with Section 12001) is a lien upon all property and franchises of every kind and nature belonging to the Medi-Cal managed care plan, and has the effect of a judgment against the Medi-Cal managed care plan.

(2) A lien levied pursuant to this subdivision shall not exceed the amount of unpaid tax collected by the Medi-Cal managed care plan.

(d) This section shall remain in effect only until January 1, 2011, and as of that date is repealed.

History—Added by Stats. 1941, Ch. 113, operative July 1, 1943. Stats. 2005, Ch. 231 (AB 1424), in effect January 1, 2006, established the former first sentence as subdivision (a); and added subdivision (b), paragraphs (1) and (2). Stats. 2009, Ch. 157 (AB 1422), in effect September 22, 2009, deleted "the provisions of" before "Article XIII of", added "California" before "Constitution", deleted "of" before "this part is a lien upon", deleted "the provisions of" before "Part 7.5" of subdivision (a); and added subdivisions (c) and (d).

Notes.—This statutory lien attaches to operative property of a corporation irrespective of ownership and until such lien is liquidated a tax clearance certificate cannot be issued. McKenney v. Riley (1936) 14 Cal.App.2d 174, 57 P2d 1362.

Text of section operative January 1, 2011

12491. Lien of tax. (a) Every tax levied upon an insurer under the provisions of Article XIII of the California Constitution and of this part is a lien upon all property and franchises of every kind and nature belonging to the insurer, and has the effect of a judgment against the insurer.

(b) (1) Every tax levied upon a surplus line broker under the provisions of Part 7.5 (commencing with Section 13201) of Division 2 is a lien upon all property and franchises of every kind and nature belonging to the surplus line broker, and has the effect of a judgment against the surplus line broker.

(2) A lien levied pursuant to this subdivision shall not exceed the amount of unpaid tax collected by the surplus line broker.

(c) This section shall become operative on January 1, 2011.

History.—Added by Stats. 2009, Ch. 157 (AB 1422), in effect September 22, 2009, but operative January 1, 2011.

* Stats. 1961, p. 1984, operative January 1, 1962, amended the title of Chapter 4 by substituting "Effect of Tax" for "Levy".