BILL NUMBER: SB 1113	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 28, 2010
	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: determinations.
   Under existing law the State Board of Equalization serves as the
appellate body for disputes arising from actions of the Franchise Tax
Board. If a taxpayer disagrees with the decision of the State Board
of Equalization, that taxpayer may, after payment of the disputed tax
 ,  file an action with the superior court in any city or
city and county in which the Attorney General has an office.
   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   disallowance  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) 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 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 
 the  city or city and county in which the Attorney General
maintains an office  that is located nearest to where the
taxpayer resides or maintains a principal place of business. In the
event the taxpayer no longer resides or   has a principal
place of business in the state, the Franchise Tax Board may bring the
action in any city or city and county where 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) 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) 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 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 
 the  city or city and county in which the Attorney General
maintains an office  that is located nearest to where the
taxpayer resides or maintains a principal place of business. In the
event the taxpayer no longer resides or has a principal place of
  business in the state, the Franchise Tax Board may bring
the action in any city or city and county where 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) 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) 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 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 
 the  city or city and county in which the Attorney General
maintains an office  that is located nearest to where the
taxpayer resides or maintains a principal place of business. In the
event the taxpayer no longer   resides or has a principal
place of business in the state, the Franchise Tax Board may bring the
action in any city or city and county where 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) 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).