(a) Except as provided in subdivision (b), a discharge granted pursuant to this article to a state agency or employee does not release any person from the payment of any tax, license, fee, or other money that is due and owing to the state.

(b) A discharge granted pursuant to this article to the Franchise Tax Board shall release a person from a liability for the payment of any tax, fee, or other liability deemed uncollectible that is due and owing to the state and extinguish that liability, if at least one of the following conditions is met:

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Terms Used In California Government Code 12437

  • Person: includes any person, firm, association, organization, partnership, limited liability company, business trust, corporation, or company. See California Government Code 17
  • Probate: Proving a will
  • State: means the State of California, unless applied to the different parts of the United States. See California Government Code 18
  • state agency: includes every state office, officer, department, division, bureau, board, and commission. See California Government Code 11000
  • Subdivision: means a subdivision of the section in which the term occurs unless some other section is expressly mentioned. See California Government Code 10

(1) The liability is for an amount less than five hundred dollars ($500).

(2) The liable person has been deceased for more than four years and there is no active probate with respect to that person.

(3) The Franchise Tax Board has determined that the liable person has a permanent financial hardship.

(4) The liability has been unpaid for more than 30 years.

(Added by renumbering Section 13943.1 by Stats. 2016, Ch. 31, Sec. 114. (SB 836) Effective June 27, 2016.)

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