BILL NUMBER: SB 1113 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 15, 2010
AMENDED IN SENATE APRIL 5, 2010
INTRODUCED BY Senator Wolk
FEBRUARY 17, 2010
An act to amend Sections 19048, 19334, and 19346 of the Revenue
and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1113, as amended, Wolk. Franchise Tax Board: tax
administration: tax appeals determinations
.
Under existing law the State Board of Equalization serves as
a quasi-judicial the appellate body for
deciding appeals disputes arising from
actions of both the Franchise Tax Board
and the State Board of Equalization . If a taxpayer
disagrees with the decision of the State Board of Equalization, that
taxpayer may, after payment of the disputed tax liability,
appeal the final decision of the board by filing a claim for refund
file an action with the superior court in any
city or city and county in which the Attorney General has an office.
Existing law does not specifically authorize the Franchise
Tax Board to appeal a final decision of the State Board of
Equalization.
This bill would, for determinations issued by the State Board of
Equalization on or after January 1, 2011, authorize the Franchise Tax
Board to bring an action for a trial de novo in superior court to
determine the deficiency amount, the amount of refund or credit, or
allowance of interest that was the subject of the determination of
the State Board of Equalization , where the amount of the
deficiency, overpayment, or disallowance of interest exceeds $100,000
for taxpayers subject to tax imposed under the Personal
Income Tax Law, or $1,000,000 for taxpayers subject to tax imposed
under the Corporation Tax Law . This bill would also authorize a
taxpayer to file a motion to change the venue to a venue closer to
the taxpayer's principal residence or principal place of business.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19048 of the Revenue and Taxation Code is
amended to read:
19048. (a) The Except as provided in
subdivision (b), the board's determination becomes final upon
the expiration of 30 days from the time of the determination unless
within the 30-day period the taxpayer or the Franchise Tax Board
files a petition for rehearing with the board. In that event the
determination becomes final upon the expiration of 30 days from the
time the board issues its opinion on the petition.
(b) (1) Notwithstanding any other provision of law, within 90 days
after the determination of the board becomes
would otherwise have become final, the Franchise Tax Board may
file a suit in superior court to determine the deficiency. A suit in
superior court to determine a deficiency shall be a trial de novo by
the court as to law and facts, there shall be a rebuttable
presumption that the notice of action of the Franchise Tax Board with
respect to the protest of a proposed deficiency assessment is
correct, and the taxpayer shall have the burden of proof that the
notice of action of the Franchise Tax Board is incorrect.
(2) Any action filed by the Franchise Tax Board under this
subdivision shall be commenced and tried in any city or city and
county in which the Attorney General maintains an office. A taxpayer
may file a motion to change the venue of any suit filed under this
subdivision to a venue closer to the taxpayer's principal residence
or principal place of business and the motion shall not be opposed by
the Attorney General or the counsel for the Franchise Tax Board.
(3) The amendments made to this section by the act adding this
paragraph
(3) This subdivision shall apply
to determinations of the board issued on or after January 1, 2011
, where the amount of the deficiency, including tax,
additions to tax, penalties, interest, additional amounts, and fees,
exceeds one hundred thousand dollars ($100,000) for taxpayers subject
to tax imposed under Part 10 (commencing with Section 17001), or one
million dollars ($1,000,000) for taxpayers subject to tax imposed
under Part 11 (commencing with Section 23001) .
SEC. 2. Section 19334 of the Revenue and Taxation Code is amended
to read:
19334. (a) The Except as provided in
subdivision (b), the determination of the board is final upon
the expiration of 30 days from the date of the determination unless
within the 30-day period, the taxpayer or Franchise Tax Board files a
petition for rehearing with the board. In that event the
determination becomes final upon the expiration of 30 days from the
date the board issues its opinion on the petition.
(b) (1) Notwithstanding any other provision of law, within 90 days
after the determination of the board becomes
would otherwise have become final, the Franchise Tax Board may
file a suit in superior court to determine the overpayment. A suit
in superior court to determine an overpayment shall be a trial de
novo by the court as to law and facts, there shall be a rebuttable
presumption that the notice of action of the Franchise Tax Board with
respect to the refund claim is correct, and the taxpayer shall have
the burden of proof that the notice of action of the Franchise Tax
Board is incorrect.
(2) Any action filed by the Franchise Tax Board under this
subdivision shall be commenced and tried in any city or city and
county in which the Attorney General maintains an office. A taxpayer
may file a motion to change the venue of any suit filed under this
subdivision to a venue closer to the taxpayer's principal residence
or principal place of business and the motion shall not be opposed by
the Attorney General or the counsel for the Franchise Tax Board.
(3) The amendments made to this section by the act adding this
paragraph
(3) This subdivision shall apply
to determinations of the board issued on or after January 1, 2011
, where the amount of the overpayment exceeds one
hundred thousand dollars ($100,000) for taxpayers subject to tax
imposed under Part 10 (commencing with Section 17001), or one million
dollars ($1,000,000) for taxpayers subject to tax imposed under Part
11 (commencing with Section 23001) .
SEC. 3. Section 19346 of the Revenue and Taxation Code is amended
to read:
19346. (a) The Except as provided in
subdivision (b), the determination of the board is final upon
the expiration of 30 days from the date of the determination unless
within the 30-day period, the taxpayer or Franchise Tax Board files a
petition for rehearing with the board. In that event the
determination becomes final upon the expiration of 30 days from the
date the board issues its opinion upon the petition.
(b) (1) Notwithstanding any other provision of law, within 90 days
after the determination of the board becomes
would otherwise have become final, the Franchise Tax Board may
file a suit in superior court to determine the disallowance of
interest. A suit in superior court to determine a disallowance of
interest shall be a trial de novo by the court as to law and facts,
there shall be a rebuttable presumption that the notice of action of
the Franchise Tax Board with respect to the disallowance of interest
is correct, and the taxpayer shall have the burden of proof that the
notice of action of the Franchise Tax Board is incorrect.
(2) Any action filed by the Franchise Tax Board under this
subdivision shall be commenced and tried in any city or city and
county in which the Attorney General maintains an office. A taxpayer
may file a motion to change the venue of any suit filed under this
subdivision to a venue closer to the taxpayer's principal residence
or principal place of business and the motion shall not be opposed by
the Attorney General or the counsel for the Franchise Tax Board.
(3) The amendments made to this section by the act adding this
paragraph
(3) This subdivision shall apply
to determinations of the board issued on or after January 1, 2011
, where the amount of the disallowance of interest exceeds one
hundred thousand dollars ($100,000) for taxpayers subject to tax
imposed under Part 10 (commencing with Section 17001), or one million
dollars ($1,000,000) for taxpayers subject to tax imposed under Part
11 (commencing with Section 23001) .