BILL NUMBER: AB 414	CHAPTERED  10/10/99

	CHAPTER   614
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 5, 1999
	PASSED THE SENATE   SEPTEMBER 7, 1999
	PASSED THE ASSEMBLY   MAY 27, 1999
	AMENDED IN ASSEMBLY   MARCH 24, 1999

INTRODUCED BY   Assembly Member Havice

                        FEBRUARY 12, 1999

   An act to amend Section 19306 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 414, Havice.  Franchise and income taxes:  statute of
limitations.
   Existing franchise and income tax law provides that no credit or
refund shall be allowed or made after a specified period of time
unless before the expiration of that period a claim for refund or
credit is filed by the taxpayer or the Franchise Tax Board allows a
credit, makes a refund, or mails a notice of proposed assessment.
   This bill would also allow a claim or refund if a claim therefor
is made prior to the expiration of a period ending 4 years from the
date the return was filed, if filed within the time prescribed by
certain laws providing for an extension of time to file, as provided.


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


  SECTION 1.  Section 19306 of the Revenue and Taxation Code is
amended to read:
   19306.  (a) No credit or refund shall be allowed or made after a
period ending four years from the date the return was filed (if filed
within the time prescribed by Section 18567 or 18604, whichever is
applicable), four years from the last day prescribed for filing the
return (determined without regard to any extension of time for filing
the return), or after one year from the date of the overpayment,
whichever period expires later, unless before the expiration of that
period a claim therefor is filed by the taxpayer, or unless before
the expiration of that period the Franchise Tax Board allows a
credit, makes a refund, or mails a notice of proposed overpayment on
a preprinted form prescribed by the Franchise Tax Board.
   (b) The amendments to this section by the act adding this
subdivision shall be applied to all claims and refunds, without
regard to taxable or income year, for which the statute of
limitations has not expired on the date that this act takes effect.