Bill Text: CA AB2618 | 2011-2012 | Regular Session | Chaptered
Bill Title: Sales and use taxes: auction: vehicles.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2012-09-29 - Chaptered by Secretary of State - Chapter 756, Statutes of 2012. [AB2618 Detail]
Download: California-2011-AB2618-Chaptered.html
BILL NUMBER: AB 2618 CHAPTERED
BILL TEXT
CHAPTER 756
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2012
APPROVED BY GOVERNOR SEPTEMBER 29, 2012
PASSED THE SENATE AUGUST 13, 2012
PASSED THE ASSEMBLY MAY 29, 2012
AMENDED IN ASSEMBLY APRIL 18, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Ma
FEBRUARY 24, 2012
An act to add Section 6092.5 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2618, Ma. Sales and use taxes: auction: vehicles.
The Sales and Use Tax Law presumes that all proceeds from retail
sales are subject to tax until the contrary is established. The
burden of proving a sale of tangible personal property is not a
retail sale subject to tax is on the seller unless the seller takes a
resale certificate in good faith from a person engaged in the
business of selling tangible personal property who holds a permit
under that law. Under that law, a person engaged in the business of
making retail sales at auction of tangible personal property owned by
others is a retailer. That law generally provides that retail sales
of vehicles subject to registration under the Vehicle Code are
subject to sales tax when sold by a person licensed or certificated
under the Vehicle Code and subject to use tax, collected by the
Department of Motor Vehicles, when sold by a person not so licensed
or certificated. A vehicle not registered under the Vehicle Code,
such as a salvage vehicle, is not subject to the special rules for
registered vehicles.
This bill would provide that a licensed dismantler that sells
specified vehicles, motorhomes, or commercial coaches subject to
registration or qualification under the Health and Safety Code or the
Vehicle Code, and salvage certificate vehicles, or a person making
those sales at auction, is presumed to be making a sale at retail,
subject to tax and not a sale for resale. This bill would provide
that the seller may rebut this presumption by taking a resale
certificate that includes specified information from a licensed
dealer, dismantler, automotive repair dealer, or scrap metal
processor. This bill would allow a qualified person that does not
timely obtain a resale certificate to use alternative methods,
prescribed by the State Board of Equalization, to verify the
transaction is a valid sale for resale.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes
counties and cities to impose local sales and use taxes in conformity
with the Sales and Use Tax Law. Existing law authorizes districts,
as specified, to impose transactions and use taxes in accordance with
the Transactions and Use Tax Law, which conforms to the Sales and
Use Tax Law. Amendments to state sales and use taxes are incorporated
into these laws.
This bill would include a change in state statute that would
result in a taxpayer paying a higher tax within the meaning of
Section 3 of Article XIII A of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.
This bill would take effect immediately as a tax levy.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6092.5 is added to the Revenue and Taxation
Code, to read:
6092.5. (a) Every qualified person making any sale of a
mobilehome or commercial coach required to be registered annually
under the Health and Safety Code, or of a vehicle required to be
registered under the Vehicle Code or 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, or of any salvage certificate vehicle as defined in
Section 11515 of the Vehicle Code, is presumed to be making a sale at
retail and not a sale for resale. The presumption may be rebutted by
taking a resale certificate from any of the following:
(1) A person that certifies it is licensed, registered, regulated,
or certificated under the Health and Safety Code or the Vehicle Code
as a dealer or dismantler.
(2) A person that certifies it is licensed, registered, regulated,
or certificated under the Business and Professions Code as an
automotive repair dealer, or is qualified as a scrap metal processor
as described in the Vehicle Code.
(3) A person that certifies it is licensed, registered, regulated,
certificated, or otherwise authorized by another state, country, or
jurisdiction to do business as a dealer, dismantler, automotive
repairer, or scrap metal processor.
(b) A qualified person shall not accept a resale certificate from
any person except as provided in subdivision (a).
(c) (1) In addition to the requirements of Sections 6093 and 6243,
the certificate shall include the license or registration number of
the dealer, dismantler, or automotive repair dealer, as applicable.
If the purchaser is not required to hold a seller's permit because
the purchaser makes no sales in this state, the purchaser must
include on the certificate a sufficient explanation as to the reason
the purchaser is not required to hold a California seller's permit in
lieu of the seller's permit number. The certificate issued by a
purchaser pursuant to this section shall be substantially in such
form as the board may prescribe.
(2) A qualified person that does not timely obtain a resale
certificate as provided in this section may use alternative methods
as prescribed by the board to rebut the presumption provided in
subdivision (a).
(d) For the purposes of this section, a "qualified person" means a
person making a sale at auction or a dismantler licensed under the
Vehicle Code.
SEC. 2. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
