Bill Text: CA AB2321 | 2015-2016 | Regular Session | Amended
Bill Title: Vehicles: registration and transfers of title or interest: use tax.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [AB2321 Detail]
Download: California-2015-AB2321-Amended.html
BILL NUMBER: AB 2321 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 20, 2016
AMENDED IN ASSEMBLY MARCH 28, 2016
INTRODUCED BY Assembly Member Rodriguez
FEBRUARY 18, 2016
An act to amend Sections 6292, 6293, and 6294 of the Revenue and
Taxation Code, and to amend Sections 4750.5, 9928, and 38211 of the
Vehicle Code, relating to vehicles.
LEGISLATIVE COUNSEL'S DIGEST
AB 2321, as amended, Rodriguez. Vehicles: registration and
transfers of title or interest: use tax.
Existing law requires the Department of Motor Vehicles to withhold
the registration or the transfer of registration of any vehicle or
vessel, and to withhold identification or transfer of ownership of
any off-highway vehicle subject to identification, until the
applicant for registration or identification pays to the department
the use tax measured by the sales price of the vehicle or vessel as
required by the Sales and Use Tax Law, together with penalty, except
as specified. Existing law requires the department to transmit all
collections of use tax and penalty to the State Board of
Equalization.
This bill would require, in addition, that the department
determine all local use taxes the applicant is responsible to pay by
specific address data provided by the applicant, and where the
vehicle or vessel is to be registered. The bill would require the
department to transmit the address data to the board, and
would make the data subject to specified information sharing
provisions. tax area codes and the amount of local use
tax and penalty collections attributable to those tax area codes to
the board. This bill would require the board to allocate the
use taxes transmitted by the department to the jurisdiction where the
purchaser registers the purchased vehicle or vessel by the
specific address tax area code data provided to
the board by the department.
This bill would declare the intent of the Legislature that the
department and the board administer the provisions relating to
registration of vehicles and vessels and identification of
off-highway vehicles for these purposes in a manner that ensures that
applicable local sales taxes and local transaction and use taxes are
collected and then remitted to the specific jurisdiction where the
vehicle or vessel is registered.
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 6292 of the Revenue and Taxation Code is
amended to read:
6292. (a) Except when the sale is by lease, when a mobilehome or
commercial coach required to be registered annually under the Health
and Safety Code or a vehicle required to be registered under the
Vehicle Code is sold at retail by other than a person licensed or
certificated pursuant to the Health and Safety Code or the Vehicle
Code as a manufacturer, remanufacturer, dealer, dismantler, or
lessor-retailer, subject to Section 11615.5 of the Vehicle Code, the
retailer is not required or authorized to collect the use tax from
the purchaser, but the purchaser of the vehicle shall pay the use tax
to the Department of Housing and Community Development acting for
and on behalf of the board pursuant to Section 18123 of the Health
and Safety Code or to the Department of Motor Vehicles acting for and
on behalf of the board pursuant to Section 4750.5 of the Vehicle
Code.
(b) If the purchaser makes an application to either department
that is not timely, and is subject to penalty because of delinquency
in effecting registration or transfer of registration of the vehicle,
he or she then becomes liable also for penalty as specified in
Section 6591, but no interest shall accrue.
(c) Application to the appropriate department by the purchaser
relieves the purchaser of the obligation to file a return with the
board under Section 6452.
(d) If the purchaser does not make application to either
department, or does not pay the amount of use tax due, or files a
return with the board under Section 6455 that is not timely, interest
and penalties shall apply with respect to the unpaid amount as
provided in Chapter 5 (commencing with Section 6451).
(e) Use taxes collected by the Department of Motor Vehicles and
transmitted to the board pursuant to Section 4750.5 of the Vehicle
Code shall be allocated to the jurisdiction where the purchaser
registers the purchased vehicle, by the specific address
tax area code data provided to the board by the
Department of Motor Vehicles. The board shall reimburse the
Department of Motor Vehicles as prescribed in subdivision (d) of
Section 4750.5 of the Vehicle Code.
SEC. 2. Section 6293 of the Revenue and Taxation Code is amended
to read:
6293. (a) Except when the sale is by lease, when a vehicle
subject to identification under Division 16.5 (commencing with
Section 38000) of the Vehicle Code or a vehicle that qualifies under
the permanent trailer identification plate program pursuant to
subdivision (a) of Section 5014.1 of the Vehicle Code, is sold at
retail by other than a person licensed or certificated pursuant to
the Vehicle Code as a manufacturer, remanufacturer, dealer,
dismantler, or lessor-retailer, subject to Section 11615.5 of the
Vehicle Code, or a person required to hold a seller's permit pursuant
to Article 2 (commencing with Section 6066) of Chapter 2 by reason
of the number, scope, and character of his or her sales of those
vehicles, the retailer is not required or authorized to collect the
use tax from the purchaser, but the purchaser of the vehicle shall
pay the use tax to the Department of Motor Vehicles acting for and on
behalf of the board pursuant to Section 38211 of the Vehicle Code.
(b) If the purchaser makes an application to that
the department which
that is not timely, and is subject to penalty because of
delinquency in effecting identification or transfer of ownership of
the vehicle, he or she then becomes liable also for penalty as
specified in Section 6591 of this code, but no interest shall accrue.
(c) Application to that the
department by the purchaser relieves the purchaser of the obligation
to file a return with the board under Section 6452.
(d) If the purchaser does not make application to that
the department, or does not pay the amount of
use tax due, or files a return with the board under Section 6455
which that is not timely, interest and
penalties shall apply with respect to the unpaid amount as provided
in Chapter 5 (commencing with Section 6451).
(e) Use taxes collected by the Department of Motor Vehicles and
transmitted to the board pursuant to Section 38211 of the Vehicle
Code shall be allocated to the jurisdiction where the purchaser
registers the purchased vehicle, by the tax area code data provided
to the board by the Department of Motor Vehicles. The board shall
reimburse the Department of Motor Vehicles as prescribed in
subdivision (d) of Section 38211 of the Vehicle Code.
SEC. 3. Section 6294 of the Revenue and Taxation Code is amended
to read:
6294. (a) When an undocumented vessel required to be registered
under the Vehicle Code is sold at retail by other than a person
holding a seller's permit and regularly engaged in the business of
selling vessels, the retailer is not required or authorized to
collect the use tax from the purchaser, but the purchaser of the
vessel must pay the use tax to the Department of Motor Vehicles
acting for, and on behalf of, the board pursuant to Section 9928 of
the Vehicle Code.
(b) If the purchaser makes an application to the department that
is not timely, and is subject to penalty because of delinquency in
effecting registration or transfer of registration of the
undocumented vessel, he or she then becomes liable also for penalty
as specified in Section 6591, but no interest shall accrue.
(c) Application to the department by the purchaser shall relieve
the purchaser of the obligation to file a return with the board under
Section 6452.
(d) If the purchaser does not make application to either
department, or does not pay the amount of use tax due, or files a
return with the board under Section 6455 that is not timely, interest
and penalties shall apply with respect to the unpaid amount as
provided in Chapter 5 (commencing with Section 6451).
(e) Use taxes collected by the Department of Motor Vehicles and
transmitted to the board pursuant to Section 9928 of the Vehicle Code
shall be allocated to the jurisdiction where the purchaser registers
the purchased vessel, by the specific address
tax area code data provided to the board by the Department
of Motor Vehicles. The board shall reimburse the Department of Motor
Vehicles as prescribed in subdivision (d) of Section 9928 of the
Vehicle Code.
SEC. 4. Section 4750.5 of the Vehicle Code is amended to read:
4750.5. (a) The department shall withhold the registration or the
transfer of registration of a vehicle sold at retail to an applicant
by a person other than a vehicle manufacturer or dealer holding a
license and certificate issued pursuant to Chapter 4 (commencing with
Section 11700) of Division 5, or an automobile dismantler holding a
license and certificate issued pursuant to Chapter 3 (commencing with
Section 11500) of Division 5, or a lessor-retailer holding a license
issued pursuant to Chapter 3.5 (commencing with Section 11600) of
Division 5, and subject to the provisions of Section 11615.5, until
the applicant pays to the department the use tax measured by the
sales price of the vehicle as required by the Sales and Use Tax Law
(Part 1 (commencing with Section 6001) of Division 2 of the Revenue
and Taxation Code), together with penalty, if any, unless the State
Board of Equalization finds that no use tax is due. If the applicant
so desires, he or she may pay the use tax and penalty, if any, to the
department so as to secure immediate action upon his or her
application for registration or transfer of registration, and
thereafter he or she may apply through the Department of Motor
Vehicles to the State Board of Equalization under the Sales and Use
Tax Law for a refund of the amount paid.
(b) (1) If applicable, the department shall determine all local
use taxes that the applicant is responsible to pay by specific
address data provided by the applicant and to which the vehicle shall
be registered. The department shall utilize all available
tools, including those available through the State Board of
Equalization, to determine the correct use tax rates to apply to the
applicant.
(2) Using the specific address data provided by the applicant and
to which the vehicle shall be registered, the department shall
identify the correct tax area code for the applicable local
jurisdiction to which the vehicle shall be registered and to which
the local use tax shall be allocated. The State Board of Equalization
shall provide a list of state tax area codes applicable to each
jurisdiction for purposes of allocating the local use taxes directly,
pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law
(Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue
and Taxation Code) and the Transactions and Use Tax Law (Part 1.6
(commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code).
(c) The department shall transmit all collections of use tax and
penalty made under this section to the State Board of Equalization.
The department also shall collect and transmit to the board
specific address data provided by applicants upon application and to
which a purchased vehicle will be registered, for proper allocation
of use tax collections. The transmitted data shall be subject to the
requirements of Section 7056 of the Revenue and Taxation Code.
transmit the tax area codes and the amount of local
use tax and penalty collections attributable to those tax area codes
to the board for the proper direct allocation of local use tax
collections. This transmittal shall be made at least monthly,
accompanied by a schedule in the form that the department and board
may prescribe.
(d) The State Board of Equalization shall reimburse the department
for its costs incurred in carrying out the provisions of this
section. The reimbursement shall be effected under agreement between
the agencies, approved by the Department of Finance.
(e) In computing any use tax or penalty under this section, dollar
fractions shall be disregarded in the manner specified in Section
9559. Payment of tax and penalty on this basis shall be deemed full
compliance with the requirements of the Sales and Use Tax Law and
local transaction and use tax law insofar as they are applicable to
the use of vehicles to which this section relates.
(f) It is the intent of the Legislature that the department and
the State Board of Equalization administer this part in a manner that
ensures that applicable Bradley-Burns uniform local sales
use taxes and local transaction and use taxes
are collected and then remitted to the specific jurisdiction where
the vehicle is registered.
SEC. 5. Section 9928 of the Vehicle Code is amended to read:
9928. (a) The department shall withhold the certificate of number
or the transfer of registration of a vessel sold at retail to an
applicant by a person other than a person holding a seller's permit
pursuant to Section 6066 of the Revenue and Taxation Code, and
regularly engaged in the business of selling vessels, until the
applicant pays to the department the use tax measured by the sales
price of the vessel as required by the Sales and Use Tax Law (Part 1
(commencing with Section 6001) of Division 2 of the Revenue and
Taxation Code), together with penalty, if any, unless the State Board
of Equalization finds that no use tax is due. If the applicant so
desires, he or she may pay the use tax and penalty, if any, to the
department so as to secure immediate action upon his or her
application for registration or transfer of registration and
thereafter he or she may apply through the Department of Motor
Vehicles to the State Board of Equalization under the Sales and Use
Tax Law for a refund of the amount paid.
(b) (1) If applicable, the department shall determine all local
use taxes that the applicant is responsible to pay by specific
address data provided by the applicant and to which the vessel shall
be registered. The department shall utilize all available
tools, including those available through the State Board of
Equalization, to determine the correct use tax rates to apply to the
applicant.
(2) Using the specific address data provided by the applicant and
to which the vehicle shall be registered, the department shall
identify the correct tax area code for the applicable local
jurisdiction to which the vessel shall be registered and to which the
local use tax shall be allocated. The State Board of Equalization
shall provide a list of state tax area codes applicable to each
jurisdiction for purposes of allocating the local use taxes directly,
pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law
(Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue
and Taxation Code) and the Transactions and Use Tax Law (Part 1.6
(commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code).
(c) The department shall transmit all collections of the use tax
and penalty made under this section to the State Board of
Equalization. The department also shall collect and transmit
to the board specific address data provided by applicants upon
application and to which a purchased vessel will be registered, for
proper allocation of use tax collections. The transmitted data shall
be subject to the requirements of Section 7056 of the Revenue and
Taxation Code. transmit the tax area codes and the
amount of lo cal use tax and penalty collections
attributable to those tax area codes to the board for the proper
direct allocation of local use tax collections. This
transmittal shall be made at least monthly, accompanied by a schedule
in the form that the department and board may prescribe.
(d) The State Board of Equalization shall reimburse the department
for its costs incurred in carrying out the provisions of this
section.
(e) In computing any use tax or penalty under this section, dollar
fractions shall be disregarded in the manner specified in Section
9559. Payment of tax and penalty on this basis shall be deemed full
compliance with the requirements of the Sales and Use Tax Law and
local transaction and use tax law insofar as they are applicable to
the use of vessels to which this section relates.
(f) The department and the State Board of Equalization shall enter
into an agreement for the collection of the use tax pursuant to this
section and Section 6294 of the Revenue and Taxation Code. The
agreement shall specify the procedures agreed upon by the department
and the board for collection of the tax and the reimbursement
provided for in subdivision (d). The agreement shall be approved by
the Department of Finance.
(g) It is the intent of the Legislature that the department and
the State Board of Equalization administer this part in a manner that
ensures that applicable Bradley-Burns uniform local sales
use taxes and local transaction and use taxes
are collected and then remitted to the specific jurisdiction where
the vessel is registered.
SEC. 6. Section 38211 of the Vehicle Code is amended to read:
38211. (a) The department shall withhold identification of or the
transfer of ownership of a vehicle subject to identification under
this division until the applicant pays to the department the use tax
measured by the sales price of the vehicle as required by the Sales
and Use Tax Law, together with penalty, if any, unless the purchaser
presents evidence on a form prescribed by the State Board of
Equalization that sales tax will be paid by the seller or that use
tax has been collected by the seller or that the State Board of
Equalization finds that no use tax is due. If the applicant so
desires, he or she may pay the use tax and penalty, if any, to the
department so as to secure immediate action upon his or her
application for identification or transfer of ownership, and
thereafter he or she may apply through the Department of Motor
Vehicles to the State Board of Equalization under the Sales and Use
Tax Law for a refund of the amount paid.
(b) (1) If applicable, the department shall determine all local
use taxes that the applicant is responsible to pay by specific
address data provided by the applicant and to which the vehicle shall
be registered. The department shall utilize all available
tools, including those available through the State Board of
Equalization, to determine the correct use tax rates to apply to the
applicant.
(2) Using the specific address data provided by the applicant and
to which the vehicle shall be registered, the department shall
identify the correct tax area code for the applicable local
jurisdiction to which the vehicle shall be registered and to which
the local use tax shall be allocated. The State Board of Equalization
shall provide a list of state tax area codes applicable to each
jurisdiction for purposes of allocating the local use taxes directly,
pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law
(Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue
and Taxation Code) and the Transactions and Use Tax Law (Part 1.6
(commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code).
(c) The department shall transmit all collections of use tax and
penalty made under this section to the State Board of Equalization.
The department also shall collect and transmit to the board
specific address data provided by applicants upon application and to
which a purchased vehicle will be registered, for proper allocation
of use tax collections. The transmitted data shall be subject to the
requirements of Section 7056 of the Revenue and Taxation Code.
transmit the tax area codes and the amount of local
use tax and penalty collections attributable to those tax
area codes to the board for the proper direct allocation of local use
tax collections. This transmittal shall be made at least
monthly, accompanied by a schedule in the form that the department
and board may prescribe.
(d) The State Board of Equalization shall reimburse the department
for its costs incurred in carrying out the provisions of this
section. The reimbursement shall be effected under agreement between
the agencies, approved by the Department of Finance.
(e) In computing any use tax or penalty under this section, dollar
fractions shall be disregarded in the manner specified in Section
9559. Payment of tax and penalty on this basis shall be deemed full
compliance with the requirements of the Sales and Use Tax Law and
local transaction and use tax law insofar as they are applicable to
the use of vehicles to which this section relates.
(f) It is the intent of the Legislature that the department and
the State Board of Equalization administer this part in a manner that
ensures that applicable Bradley-Burns uniform local sales
use taxes and local transaction and use taxes
are collected and then remitted to the specific jurisdiction where
the vehicle is registered.
