Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales And Use Tax Court Decisions

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Garg; People v. . . . (1993)

Suit to Collect Taxes Untimely Because Not Filed within Three Years After the Tax Had Become Delinquent

In June 1982, the Board issued a demand for immediate payment against taxpayer for tax due on the purchase of an aircraft. The Board recorded a notice of state tax lien in San Diego County on February 1, 1989 and filed a suit to collect taxes on June 19, 1990. The issue was whether the Board timely filed its suit to collect taxes.

The court held that Revenue and Taxation Code section 6711 allows the state to bring an action in personam (i.e., an action to establish personal liability of taxpayer) within three years after the tax becomes due and payable and after delinquency, but no later. The reference in the statute to the period during which a recorded lien is in effect is for an action to enforce a lien, not for an in personam action. Since the Board brought the suit to collect taxes more than three years after the delinquency, the suit was not timely. People v. Garg (1993) 16 Cal.App.4th 357.