Amended  IN  Assembly  April 10, 2024
Amended  IN  Assembly  March 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2854

Introduced by Assembly Member Irwin

February 15, 2024

An act to add Section 7213 to the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


AB 2854, as amended, Irwin. Bradley-Burns Uniform Local Sales and Use Tax Law.
The Bradley-Burns Uniform Local Sales and Use Tax Law (Bradley-Burns) authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law. Existing law, on or after January 1, 2016, prohibits a local agency from entering into any form of agreement that would result, directly or indirectly, in the payment, transfer, diversion, or rebate of Bradley-Burns local tax revenues to any person, as defined, for any purpose, if the agreement results in a reduction in the amount of Bradley-Burns local tax revenues that, in the absence of the agreement, would be received by another local agency and the retailer continues to maintain a physical presence within the territorial jurisdiction of that other local agency, with specified exceptions.
This bill would require a local agency, as defined, to annually provide specified information relating to each agreement resulting in the direct or indirect payment, transfer, diversion, or rebate of Bradley-Burns local tax revenues to the California Department of Tax and Fee Administration. The bill would additionally require the local agency to publish that information on its internet website. The bill would impose monetary penalties on any local agency that fails to provide information to the department or fails to publish information to its internet website. website, as prescribed. By expanding the duties of local agencies, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 7213 is added to the Revenue and Taxation Code, to read:

7213.
 (a) For purposes of this section, the following apply: section:
(1) “Local agency” has the same meaning as defined in subdivision (c) of Section 53084.5 of the Government Code.
(2) “Rebated sales and use tax revenues” means any direct or indirect payment, transfer, diversion, or rebate of any tax revenue resulting from the imposition of a sales and use tax under this chapter to any person pursuant to an agreement.
(b) (1) Each (A) Notwithstanding Section 7056, a local agency shall publish on its internet website, on or before April 30 of each year, the information submitted to the department pursuant to subdivision (c). A hyperlink to the information must be present and visible on the homepage of the internet website at all times.
(B) A hyperlink to the information submitted to the department pursuant to subdivision (c) shall be present and visible on the home page of the local agency’s internet website at all times.
(2) A local agency that has not directly or indirectly paid, transferred, diverted, or rebated any sales and use tax revenues pursuant to an agreement in the immediately preceding calendar fiscal year shall, by April 30, report this fact to the department in a form and manner prescribed by the department and shall be exempt from the posting requirement outlined in paragraph (1).
(c) On Notwithstanding Section 7056, on or before April 30 of each year, a local agency shall report to the department, in a form and manner prescribed by the department, the following information on each agreement resulting in rebated sales and use tax revenues:
(1) The name or names of any parties to the agreement.
(2) The total dollar amount of rebated sales and use tax revenues received by each party to the agreement on or after the date of the execution of the agreement through and including December 31 June 30 of the calendar fiscal year immediately preceding the date of the report.
(3) The total dollar amount of rebated sales and use tax revenues received by each party to the agreement during the calendar fiscal year immediately preceding the date of the report.
(4) The date on which the agreement was originally executed, and the date on which the agreement will terminate, absent any renewal.
(5) The percentage of a retailer’s sales and use taxes, if any, used to calculate or otherwise determine the rebated sales and use tax revenues received by each party to the agreement.
(6) The percentage of a retailer’s sales and use taxes, if any, used to calculate or otherwise determine the rebated sales and use tax revenues received by any other person that is not a party to the agreement.
(d) (1) In any case where (A) (i) If a local agency fails to timely provide the information required pursuant to subdivision (c), or fails to publish information to its internet website consistent with pursuant to subdivision (b), the department shall notify the local agency that it has 30 days from the local agency’s receipt of the notice to provide or publish the required information. If a local agency fails to provide or publish the information within 30 days of the date the department provides notice, the department may impose a penalty in an amount equal to the greater of the following: information or submit a written statement to the department explaining why it is unable to provide or publish the required information within 30 days of the local agency’s receipt of the notice.
(ii) If a local agency provides a written statement pursuant to clause (i), the department shall grant an extension of the deadline or require the local agency to provide or publish the required information within 30 days of the date the local agency receives the department’s response.
(B) If a local agency fails to provide or publish the information by the deadline determined pursuant to subparagraph (A), the department may impose a penalty in an amount equal to the greater of the following:

(A)

(i) Twenty percent of any rebated sales and use tax revenues during the applicable calendar fiscal year.

(B)

(ii) One thousand dollars ($1,000) for each day past the deadline determined pursuant to subparagraph (A) that the local agency fails to provide or publish the required information after receipt of the 30-day notice from the department. information.
(2) The provisions of Chapter 4 (commencing with Section 55121) of Part 30 apply with respect to the collection of the penalties imposed pursuant to this subdivision.
(e) Notwithstanding Section 7056, on or before June 1, 2025, and annually thereafter, the department shall publish on its internet website the information submitted pursuant to this section.

SEC. 2.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.