California is getting tougher with tax deadbeats, who could lose their driver's license or their working professional licenses if they owe more than $100,000 in unpaid taxes.
Under a new California law that went into effect this summer, both the state Franchise Tax Board and the state Board of Equalization are now required to send their lists of California's Top 500 delinquent taxpayers to state licensing agencies that could use the information to yank driver's licenses or professional licenses, anything from real estate agents to hair stylists to doctors.
The BOE sent its Top 500 list to licensing agencies in late August; the FTB will send its list in mid-October. Those on the list are also prohibited from entering into any contracts with state agencies.
The Top 500 lists, comprised of those who owe at least $100,000 in delinquent income, sales and use taxes, include a number of Sacramento-area residents.
The FTB issues its list twice a year. The BOE's Top 500 list is updated quarterly. Among local taxpayer names added to the BOE's list in the last quarter: a Jack in the Box restaurant in Roseville owned by Kobra Associates Inc. ($1.3 million); a Jack in the Box restaurant owned by Food Service Management Inc. in Roseville ($494,000); River City Wellness Collective in Roseville ($559,000); and Coast Crane Company in West Sacramento ($707,000).
The public lists were doubled in size this year, from 250 to 500. They do not include those whose tax situation is on appeal, in litigation, involved in bankruptcy or under an installment payment program.
According to the state, the annual tax gap - the difference between what's owed and what's collected - is $10 billion. Since the delinquent taxpayer lists went public in 2007, the FTB and BOE say they've recovered a combined $171 million in unpaid taxes.