Title
Authorize the Treasurer-Tax Collector's Revenue Division to renew the Franchise Tax Board (FTB) Court-Ordered Debt collection program State Standard Contract for the period of January 1, 2018 to December 31, 2020 and direct the Chair of the Board to sign the State Standard Contract renewal.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Authorize the Treasurer-Tax Collector's Revenue Division to renew the Franchise Tax Board (FTB) Court-Ordered Debt Collection Program State Standard Contract for the period January 1, 2018 to December 31, 2020 and direct the Chair of the Board to sign the State Standard Contract renewal.
SUMMARY:
Board approval is required to renew the State Standard Contract with the Franchise Tax Board. The Board previously renewed the State Standard Contract with the Franchise Tax Board on December 09, 2014, Agreement Number C1400120, Resolution No. 14-1285.
DISCUSSION:
With passage of AB3343/Hannigan (Chapter 1242, Statutes of 1994) the FTB was given the authority to form partnerships with California counties for the purpose of reducing the amount of court-ordered debt owed in the state. The FTB Court-Ordered collection program is the result of this enabling legislation.
Because the FTB collects personal income, corporate franchise and income tax, they have access to income records, wage information, interest, and dividend information not available to the county. As a result, they can quickly determine debtor assets and issue administrative levies. To date, 55 counties and/or courts take advantage of this program. The FY 2016-17 collections on behalf of Monterey County were approximately $3.2 million. The FTB charges an administrative fee of 15% of total collections for a net collection amount of $2.8 million.
The Treasurer-Tax Collector's Revenue Division collects primarily debt ordered by the Monterey County Superior Court consisting of certain criminal fines, penalties, forfeitures and restituti...
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