Bill Text: CA AB2758 | 2013-2014 | Regular Session | Chaptered
Bill Title: Sales and use taxes: administration: qualified use tax: acceptable tax return.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Passed) 2014-09-25 - Chaptered by Secretary of State - Chapter 541, Statutes of 2014. [AB2758 Detail]
Download: California-2013-AB2758-Chaptered.html
BILL NUMBER: AB 2758 CHAPTERED
BILL TEXT
CHAPTER 541
FILED WITH SECRETARY OF STATE SEPTEMBER 25, 2014
APPROVED BY GOVERNOR SEPTEMBER 25, 2014
PASSED THE SENATE AUGUST 26, 2014
PASSED THE ASSEMBLY AUGUST 27, 2014
AMENDED IN SENATE AUGUST 22, 2014
AMENDED IN ASSEMBLY APRIL 10, 2014
INTRODUCED BY Committee on Revenue and Taxation (Bocanegra (Chair),
Gordon, Mullin, Pan, V. Manuel Pérez, and Ting)
MARCH 24, 2014
An act to amend Sections 6452.1 and 18510 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2758, Committee on Revenue and Taxation. Sales and use taxes:
administration: qualified use tax: acceptable tax return.
The Sales and Use Tax Law generally provides, for a transaction
not subject to sales tax, that every person storing, using, or
otherwise consuming in this state tangible personal property
purchased from a retailer for storage, use, or other consumption in
this state is liable for use tax, and must pay the use tax to the
State Board of Equalization, unless that person has paid the use tax
to a retailer registered to collect the tax. Existing law authorizes
a person to make an irrevocable election to report qualified use tax,
as defined, on that person's income tax return. Under existing law,
any payments and credits shown on the return, together with any other
credits associated with that person's account, of a person that
elects to report qualified use tax on an acceptable tax return is
applied first to taxes imposed under the Personal Income Tax Law or
the Corporation Tax Law, including penalties and interest, and then
to qualified use tax.
This bill would instead require, of payments and credits shown on
the return, together with any other credits associated with that
person's tax year, of a person that reports qualified use tax on an
acceptable tax return, an amount equal to the qualified use tax
liability reported on that acceptable tax return be applied to that
liability, as provided, for purchases of tangible personal property
made in a taxable year beginning on or after January 1, 2015.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6452.1 of the Revenue and Taxation Code is
amended to read:
6452.1. (a) Notwithstanding Section 6451, every person that
purchases tangible personal property, the storage, use, or other
consumption of which is subject to qualified use tax, as defined in
subdivision (d), that is otherwise required to report and remit that
tax pursuant to this part, may elect to report and remit qualified
use tax on an acceptable tax return.
(b) (1) A person that reports qualified use tax on an acceptable
tax return is deemed to have made the election authorized by this
section.
(2) (A) In the case of a married individual filing a separate
California personal income tax return, an election may be made to
report either one-half of the qualified use tax or the entire
qualified use tax on his or her separate California personal income
tax return.
(B) If an individual elects to report one-half of the qualified
use tax, that election will not be binding with respect to the
remaining one-half of the qualified use tax owed by that individual
and that individual's spouse.
(c) An election to report qualified use tax on an acceptable tax
return shall be irrevocable. An acceptable tax return that contains
use tax shall be considered a tax return for purposes of this part.
(d) For purposes of this section:
(1) "Acceptable tax return" means a timely filed original return
that is filed pursuant to Article 1 (commencing with Section 18501),
Article 2 (commencing with Section 18601), Section 18633, Section
18633.5 of Chapter 2 (commencing with Section 18501) of Part 10.2, or
Article 3 (commencing with Section 23771) of Chapter 4 of Part 11.
(2) (A) Except as provided in subparagraph (B), "qualified use tax"
means either of the following:
(i) For one or more single nonbusiness purchases of individual
items of tangible personal property each with a sales price of less
than one thousand dollars ($1,000), either of the following:
(I) The use tax imposed under this part, Article XIII of the
California Constitution, in conformity with the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section
7200)), or in accordance with the Transactions and Use Tax Law (Part
1.6 (commencing with Section 7251)) that has not been paid to a
retailer holding a seller's permit or certificate of registration-use
tax.
(II) The estimated amount of use tax as calculated by the board.
The board shall annually calculate the estimated amount of use tax
due according to a person's adjusted gross income and by July 30 of
each calendar year make available to the Franchise Tax Board such
amounts in the form of a use tax table as part of the accompanying
instructions of the acceptable tax return.
(ii) For one or more single nonbusiness purchases of individual
items of tangible personal property each with a sales price of one
thousand dollars ($1,000) or more, or for any tangible personal
property purchased for use in a trade or business, the amount of use
tax imposed under this part, Article XIII of the California
Constitution, the Bradley-Burns Uniform Local Sales and Use Tax Law
(Part 1.5 (commencing with Section 7200)), or the Transactions and
Use Tax Law (Part 1.6 (commencing with Section 7251)) that has not
been paid to a retailer holding a seller's permit or certificate of
registration-use tax.
(B) "Qualified use tax" does not include:
(i) Use tax imposed on the storage, use, or other consumption of a
mobilehome or a commercial coach that is required to be registered
annually pursuant to the Health and Safety Code or use tax imposed on
the storage, use, or other consumption of 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.
(ii) Use tax imposed on the storage, use, or other consumption of
a vehicle, vessel, or aircraft.
(iii) Use tax imposed on a lease of tangible personal property.
(iv) Use tax imposed on the storage, use, or other consumption of
cigarettes, tobacco products, or cigarettes and tobacco products for
which the purchaser is registered with the board as a cigarette
consumer, a tobacco products consumer, or a cigarette and tobacco
products consumer.
(e) (1) If a person elects to report qualified use tax on an
acceptable tax return, that person shall report and remit the
qualified use tax by reporting the amount due based on all taxable
purchases of tangible personal property made during the taxable year
for which the acceptable tax return is required to be filed. A person
that has made one or more single nonbusiness purchases of individual
items of tangible personal property each with a sales price of less
than one thousand dollars ($1,000) may satisfy his or her tax
liability for those purchases by using the use tax table shown in the
accompanying instructions of the acceptable tax return.
(2) The qualified use tax shall be reported on and remitted with
an acceptable tax return that is required to be filed for the taxable
year in which the liability for the qualified use tax was incurred.
(f) (1) The penalties and interest imposed under this part, in
conformity with the Bradley-Burns Uniform Local Sales and Use Tax Law
(Part 1.5 (commencing with Section 7200)), or in accordance with the
Transactions and Use Tax Law (Part 1.6 (commencing with Section
7251)) shall apply to use tax reported as qualified use tax on an
acceptable return.
(2) Any claims for refunds or credits of any use tax reported as
qualified use tax on an acceptable tax return shall be made in
accordance with Chapter 7 (commencing with Section 6901) of this
part.
(3) Qualified use tax shall be considered to be timely reported
and remitted for purposes of this part, in conformity with the
Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5
(commencing with Section 7200)), and in accordance with the
Transactions and Use Tax Law (Part 1.6 (commencing with Section
7251)), if the qualified use tax is timely reported on and remitted
with an acceptable tax return in accordance with the provisions of
this section.
(g) Notwithstanding a person's payment of qualified use tax on an
acceptable tax return, the board is not precluded from making any
determinations for understatements of qualified use tax against that
person in accordance with this chapter. However, with respect to one
or more single nonbusiness purchases of individual items of tangible
personal property each with a sales price of less than one thousand
dollars ($1,000), the board shall be precluded from making any such
determination against any person who uses the use tax table for
purposes of satisfying his or her use tax liability when the person
uses that table in accordance with the accompanying instructions.
(h) (1) Of payments and credits shown on the return, together with
any other credits associated with that person's tax year, of a
person that reports qualified use tax on an acceptable tax return, an
amount equal to the qualified use tax liability reported on that
acceptable tax return in accordance with this section shall be
applied to that liability.
(2) This subdivision shall apply to purchases of tangible personal
property made on or after January 1, 2015, in taxable years
beginning on or after January 1, 2015.
(i) (1) This section does not apply to a person who is otherwise
required to hold a seller's permit or to register with the State
Board of Equalization pursuant to Part 1 (commencing with Section
6001) of this division.
(2) Except as otherwise provided, this section applies to
purchases of tangible personal property made on or after January 1,
2010, in taxable years beginning on or after January 1, 2010.
(3) The amendments made by Chapter 14 of the Statutes of 2011
shall apply to purchases of tangible personal property made on or
after January 1, 2011, in taxable years beginning on or after January
1, 2011.
SEC. 2. Section 18510 of the Revenue and Taxation Code is amended
to read:
18510. (a) (1) The Franchise Tax Board shall revise the returns
required to be filed pursuant to this article, Article 2 (commencing
with Section 18601), Section 18633, Section 18633.5, and Article 3
(commencing with Section 23771) of Chapter 4 of Part 11, and the
accompanying instructions for filing those returns, in a form and
manner approved by the State Board of Equalization, to allow a person
to report and pay qualified use tax in accordance with the
provisions of Section 6452.1.
(2) Within 10 working days of receiving from the Franchise Tax
Board the returns and instructions described in paragraph (1), the
State Board of Equalization shall do either of the following:
(A) Approve the form and manner of the returns and instructions
and notify the Franchise Tax Board of this approval.
(B) Submit comments to the Franchise Tax Board regarding changes
to the returns and instructions that shall be incorporated before the
State Board of Equalization approves the form and manner of the
returns and instructions.
(b) (1) Of payments and credits shown on the return, together with
any other credits associated with that person's tax year, of a
person that reports qualified use tax on an acceptable tax return, an
amount equal to the qualified use tax liability reported on that
acceptable tax return in accordance with Section 6452.1 shall be
applied to that liability.
(2) This subdivision shall apply to returns filed for taxable
years beginning on or after January 1, 2015.
(c) The Franchise Tax Board shall transfer the qualified use tax
received pursuant to Section 6452.1, and any information the State
Board of Equalization deems necessary for its administration of the
use tax, to the State Board of Equalization within 60 days from the
date the use tax is received or the acceptable tax return is
processed, whichever is later.
(d) Except as otherwise provided, this section shall be operative
for returns filed for taxable years beginning on and after January 1,
2010.
(e) The amendments made by Chapter 14 of the Statutes of 2011
shall apply to returns filed for taxable years beginning on and after
January 1, 2011.
