California Suspends Use of Tax Refunds to Offset State Debts

California won’t use state income tax refunds to offset overdue state debts such as parking citations, tolls, fines, and tuition through July 31 in response to the Covid-19 pandemic.

• The Franchise Tax Board said Monday it is temporarily suspending collection activities under its Interagency Intercept Collection Program in keeping with a March 2020 executive order from Gov. Gavin Newsom (D) directing tax agencies to offer relief.
• The tax board is authorized to use tax refunds, lottery winnings, and unclaimed property to offset debts due to other state and local government entities.