Sacramento Bee: Governor signs bill to take cars away from tax cheats

Jerry Brown signs bill to take cars away from tax cheats

By Claudia Buck The Sacramento Bee

Published: Wednesday, Oct. 5, 2011 - 12:00 am | Page 6B

Copyright 2011 The Sacramento Bee. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

California's biggest tax scofflaws could soon be walking, not driving.

Under a bill signed Tuesday by Gov. Jerry Brown, the state's 1,000 most egregious tax debtors could have their driver's licenses yanked, unless they enter tax repayment plans with the state Franchise Tax Board or State Board of Equalization.

Assembly Bill 1424 by state Assemblyman Henry Perea, D-Fresno, is an effort to recoup the estimated $6.5 billion in unpaid state income and business taxes owed to California.

"We'll send a request to DMV to let them know who's on the list and whose license can be revoked," said FTB spokesman Daniel Tahara. "Everyone has different motivating factors to get them to resolve their tax debt and this is just one of them."

About $154.8 million is owed by the top 250 people and businesses on the state delinquency list. The worst offenders are a Los Angeles couple who owe the state $14.2 million in personal income taxes.

On the State Board of Equalization's site, the most owed is $18 million by California Target Enterprises Inc. in Downey that's overdue by eight years. It's a gas station company that's not associated with the Target store chain.

However, everyone who's currently listed will get a year's reprieve. Tahara said the final FTB list won't be sent to DMV until October 2012. "Hopefully a lot of them will get taken off the list and won't be on it next year."

Under the terms of the bill, a tax delinquent could have his or her license revoked or suspended starting next July. Those who lose their license can have it reinstated after making payment arrangements or if they can demonstrate a financial hardship.

Assemblyman Perea said targeting driver's and professional licenses will get the attention of million-dollar tax avoiders.

"What better way to get someone's attention who owes $18 million: Unless you settle your tax bill, you can't go to work," he said.