Bill Text: CA AB43 | 2013-2014 | Regular Session | Amended

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Bill Title: Sales and use taxes: claim for refund: customer refunds.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2014-08-14 - In committee: Held under submission. [AB43 Detail]

Download: California-2013-AB43-Amended.html

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BILL NUMBER: AB 43	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 5, 2014
	AMENDED IN ASSEMBLY  JANUARY 6, 2014
	AMENDED IN ASSEMBLY  APRIL 29, 2013
	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Bocanegra

                        DECEMBER 14, 2012

   An act to amend Section 6901 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 43, as amended, Bocanegra. Sales and use taxes: claim for
refund: customer refunds.
   Under the Sales and Use Tax Law, any amount collected or paid in
excess of what is due under that law is required to be credited by
the State Board of Equalization against any other amounts due and
payable from the person from whom the excess amount was collected or
by whom it was paid, and the balance refunded to the person, as
provided. Under existing law, when an amount represented by a person
to a customer as constituting reimbursement for taxes due under the
Sales and Use Tax Law is computed upon an amount that is not taxable
or is in excess of the taxable amount and is actually paid by the
customer to the person, the amount paid is required to be returned by
the person to the customer upon notification by the board or by the
customer that this excess has been ascertained.
   This bill would authorize a person to make an irrevocable election
to assign to the customer the right to receive the amount that would
be refunded to the person, provided specified conditions are met,
including that the amount be $50,000 or greater, and would authorize
the board to make that payment to the customer.
   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 6901 of the Revenue and Taxation Code is
amended to read:
   6901.  (a) If the board determines that any amount, penalty, or
interest has been paid more than once or has been erroneously or
illegally collected or computed, the board shall set forth that fact
in the records of the board and shall certify the amount collected in
excess of the amount legally due and the person from whom it was
collected or by whom paid. The excess amount collected or paid shall
be credited by the board on any amounts then due and payable from the
person from whom the excess amount was collected or by whom it was
paid under this part, and the balance shall be refunded to the
person, or his or her successors, administrators, or executors, or
customer as provided in subdivision (b), if a determination by the
board is made in any of the following cases:
   (1) Any amount of tax, interest, or penalty was not required to be
paid.
   (2) Any amount of prepayment of sales tax, interest, or penalty
paid pursuant to Article 1.5 (commencing with Section 6480) of
Chapter 5 was not required to be paid.
   (3) Any amount that is approved as a settlement pursuant to
Section 7093.5.
   (b) A person may make an irrevocable election to assign to the
customer the right to receive the amount refunded if all of the
following conditions are met:
   (1) The entire amount represents excess tax reimbursement that is
required to be paid by the person to a single customer under Section
6901.5.
   (2) The amount to be refunded is fifty thousand dollars ($50,000)
or greater.
   (3) The irrevocable election to assign to the customer the amount
refunded is evidenced by a statement signed by the person and the
customer authorizing the named customer to receive the amount
refunded.
   (4)  The   Notwithstanding any other law, the
 signed statement is submitted to the board in conjunction with
the person's  or   customer's  claim for refund.
   (c)  Any overpayment of the use tax by a purchaser to a retailer
who is required to collect the tax and who gives the purchaser a
receipt therefor pursuant to Article 1 (commencing with Section 6201)
of Chapter 3 shall be credited or refunded by the state to the
purchaser.
   (d) Any proposed determination by the board pursuant to this
section with respect to an amount in excess of fifty thousand dollars
($50,000) shall be available as a public record for at least 10 days
prior to the effective date of that determination.