Amends existing law to revise provisions regarding the accrual of interest on income and sales tax deficiencies.

This legislation would limit the time frame during which interest accrues where a tax deficiency is found by excluding interest during two periods of time: 1) The period of time after the state tax commission sends written notice that an audit is being initiated, but before the issuance of a notice of deficiency determination, and 2) The period of time after a notice of deficiency determination, which is subject to a perfected protest and before the final determination of the deficiency by the state tax commission following the state tax commission’s disposition of the protest.