BILL NUMBER: AB 41	CHAPTERED  09/23/99

	CHAPTER   463
	FILED WITH SECRETARY OF STATE   SEPTEMBER 23, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 23, 1999
	PASSED THE ASSEMBLY   AUGUST 26, 1999
	PASSED THE SENATE   AUGUST 23, 1999
	AMENDED IN SENATE   JUNE 28, 1999
	AMENDED IN ASSEMBLY   MAY 28, 1999
	AMENDED IN ASSEMBLY   APRIL 27, 1999
	AMENDED IN ASSEMBLY   APRIL 5, 1999
	AMENDED IN ASSEMBLY   MARCH 17, 1999

INTRODUCED BY   Assembly Member Wesson
   (Coauthors:  Assembly Members Calderon, Soto, Washington, and
Zettel)
   (Coauthor:  Senator Solis)

                        DECEMBER 7, 1998

   An act to add Section 19041.5 to the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 41, Wesson.  Income and bank and corporation taxes:  deficiency
protest.
   Existing law provides for the administration of income and bank
and corporation taxes.  That law provides that a claim for refund
shall be filed within specified timeframes if any tax has been paid
or overpaid, as specified.
   This bill would provide that a payment of taxes by making a
deposit in the nature of a cash bond to stop the running of interest,
as specified, shall not be considered a payment for purposes of a
claim for refund or an action until specified events occur, as
provided.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 19041.5 is added to the Revenue and Taxation
Code, to read:
   19041.5.  (a) Notwithstanding any other provision of this part,
Part 10 (commencing with Section 17001), or Part 11 (commencing with
Section 23001), any amount paid as a tax or in respect of a tax that
is paid after the mailing of a notice of proposed deficiency
assessment and designated by the taxpayer as a deposit in the nature
of a cash bond made to stop the running of interest, shall not be
considered a payment of tax for purposes of filing a claim for refund
pursuant to Section 19306 or an action pursuant to Section 19384
until either of the following occurs:
   (1) The taxpayer provides a written statement to the Franchise Tax
Board specifying that the deposit shall be a payment of tax for
purposes of Section 19306, 19335, or 19384.
   (2) The deficiency assessed becomes due and payable in accordance
with Section 19049.
   (b) The Franchise Tax Board may promulgate rules and regulations
to adopt applicable provisions of federal Revenue Procedure 84-58,
1984-2 C.B.  501, for purposes of this section.