ARTICLE 4. Priority and Lien of Tax [38531. - 38532.]

Cal. Revenue and Taxation Code - RTC 4.

in effect

Cal. Revenue and Taxation Code - RTC § 38531. Section 38531.

The amounts required to be paid by any person under this part together with interest and penalties shall be satisfied first in any of the following cases: (a) Whenever the person is insolvent. (b) Whenever the person makes a voluntary assignment of his assets. (c) Whenever the estate of the person in the hands of executors, administrators, or heirs is insufficient to pay all the debts due from the deceased. (d) Whenever the estate and effects of an absconding, concealed, or absent person required to pay any amount under this part are levied upon by process of law. This section does not give the state a preference over any lien or security interest which was recorded or perfected prior to the time when the state records or files its lien as provided in Section 7171 of the Government Code. The preference given to the state by this section shall be subordinate to the preferences given to claims for personal services by Sections 1204 and 1206 of the Code of Civil Procedure.

Cal. Revenue and Taxation Code - RTC § 38532. Section 38532.

(a) If any amount required to be paid to the state under this part is not paid at the time that it becomes due and payable, the amount thereof, including penalties and interest, together with any costs in addition thereto, shall thereupon be a perfected and enforceable state tax lien. Such a lien is subject to Chapter 14 (commencing with Section 7150) of Division 7 of Title 1 of the Government Code. (b) For the purpose of this section, amounts are “due and payable” on the following dates: (1) For amounts disclosed on a return received by the board before the date the return is delinquent, the date the return would have been delinquent. (2) For amounts disclosed on a return filed on or after the date the return is delinquent, the date the return is received by the board. (3) For amounts received under Section 38431 (pertaining to jeopardy assessments), the date the notice of the board’s finding is mailed or issued. (4) For all other amounts, the date the assessment is final.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026