Committee recommends clarification to limit how fees restart state tax collection clock

Chair Gibson presented AB 1519, explaining the bill would ensure the 20‑year statute of limitations on certain state tax collections runs from when the underlying tax liability becomes due and payable and that subsequent fees, penalties or interest would not restart that clock. "Putting it simple, this bill would create an actual 20 year statute of limitations not 1 that the FTB can extend," Gibson said.

Jennifer Tannehill, speaking for the California Society of Enrolled Agents through Aaron Reed & Associates, and Missy Johnson of the California Society for Certified Public Accountants supported the bill. Tannehill noted the bill narrows its definition of "tax" to the sections in the measure and Johnson said the bill addresses ambiguity that complicates tax practitioners' work. Both asked for the committee's aye vote.

Following no opposition testimony, committee members moved and seconded a motion to recommend concurrence in the Senate amendments (moved by Rodriguez, seconded by Carrillo). The roll call recorded a 6–0 vote; the committee reported AB 1519 out of committee.