§ 1242. Limitations on assessment. (a) Cities over one million. Except
in the case of a wilfully false or fraudulent return with intent to
evade the tax, no assessment of additional tax shall be made with
respect to the taxes imposed under the authority of section twelve
hundred one, after the expiration of more than three years from the date
of the filing of a return, provided, however, that where no return has
been filed, or where the taxpayer fails to file a report in respect of a
change or correction in the amount of sales and compensating use tax
liability relating to the purchase or use of items for which a sales or
compensating use tax credit against the tax was claimed, as provided by
law, the tax may be assessed at any time. Notwithstanding the prior
sentence, no assessment of additional tax shall be made with respect to
taxes imposed under local laws enacted prior to July first, nineteen
hundred thirty-eight, except in the case of a wilfully false or
fraudulent return with intent to evade the tax. Where the taxpayer
files a report in respect of a change or correction in sales and
compensating use tax liability, as provided by law, an assessment may be
made at any time within two years after such report was filed.

(b) Cities under one million, counties and school districts. Except in
the case of a wilfully false or fraudulent return with intent to evade
the tax, no assessment of additional tax shall be made with respect to
taxes imposed under the authority of sections twelve hundred two through
twelve hundred four, after the expiration of more than three years from
the date of the filing of a return, provided, however, that where no
return has been filed as provided by local law, ordinance or resolution,
the tax may be assessed at any time.