California Senate Bill SB1113 Amended / Bill

 BILL NUMBER: SB 1113AMENDED 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)  .