Bill Text: CA AB469 | 2009-2010 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Sales and use taxes: qualified use tax payment.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Vetoed) 2010-01-14 - Consideration of Governor's veto stricken from file. [AB469 Detail]

Download: California-2009-AB469-Introduced.html
BILL NUMBER: AB 469	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Eng

                        FEBRUARY 24, 2009

   An act to amend Sections 6452.1, 6453, 6487.3, and 18510 of the
Revenue and Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 469, as introduced, Eng. Sales and use taxes: qualified use tax
payment.
   The Sales and Use Tax Law imposes a tax on the gross receipts from
the sale in this state of, or the storage, use, or other consumption
in this state of, tangible personal property purchased from a
retailer for storage, use, or other consumption in this state.
Existing law requires retailers, as specified, to register with the
State Board of Equalization, and requires that board to issue forms
for the computation and payment of sales and use taxes collected or
owed by those retailers. For taxable years beginning on January 1,
2003, and ending on December 31, 2009, existing law authorizes a
person to make an irrevocable election to report qualified use tax,
as defined, on that person's income tax form. Existing law requires
the Franchise Tax Board to include space on income tax returns to
allow a person to report and remit qualified use taxes to the
Franchise Tax Board, and requires the Franchise Tax Board to remit
the qualified use taxes collected to the State Board of Equalization.

   This bill would revise the provisions relating to use tax
reporting on an income tax return to instead require every person
subject to qualified use tax, as defined, to report and remit that
tax on an acceptable tax return, as specified. This bill would
require the Franchise Tax Board to revise the income tax form to
enable a person to report and remit qualified use tax. This bill
would also make conforming changes to related provisions.
   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 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  (b)   (d)  , that is otherwise
required to report and remit that tax pursuant to this part  and
fails to do so  ,  may elect to   shall
 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 
    (b)     (1)     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) 
    (2)  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  the use   either of the following: 

    (i)     The use  tax imposed under
this part, Section 35 of 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. 
   (ii) For individual nonbusiness purchases of less than one
thousand dollars ($1,000), the estimated amount of use tax due based
on the person's California taxable income as reflected in the use tax
table shown in the accompanying instructions of the acceptable tax
return. For individual nonbusiness purchases of one thousand dollars
($1,000) or more, "qualified use tax" means the amount of use tax due
in accordance with clause (i). 
   (B) "Qualified use tax" does not include:
   (i) Use tax that applies to a mobilehome or a commercial coach
that is required to be registered annually pursuant to the Health and
Safety Code or use tax that applies to a vehicle subject to
identification under Division 16.5 (commencing with Section 38000) of
the Vehicle Code, or to 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 a vehicle, vessel, or aircraft.
   (iii) Use tax imposed on a lessee of tangible personal property.

   (e) If a person elects to report qualified use tax on an
acceptable tax return, that person shall comply with all of the
following:  
   (1) The qualified use tax shall be reported on and remitted with
an 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.
 
   (iv) Use tax imposed on a purchase 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) A person that is required to report qualified use tax on an
acceptable tax return shall report and remit the qualified use tax by
either reporting the amount due based on all taxable purchases of
tangible personal property made during the taxable year for which the
taxable return is required to be filed or, with respect to
individual nonbusiness purchases of less than one thousand dollars
($1,000), by using the use tax table shown in the accompanying
instructions of the acceptable tax return. 
   (f) (1) The penalties and interest imposed under this part, 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)) 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, the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section
7200)), and 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  election to remit and to
report   payment of  qualified use tax on an
acceptable tax return, the State Board of Equalization is not
precluded from making any determinations for understatements of
qualified use tax against that person in accordance with Part 5
(commencing with Section 6451).  However, with respect to
individual nonbusiness purchases of   less than one thousand
dollars ($1,000), the board shall be precluded from making any such
determination against any person that 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) Any payments and credits shown on the return, together with
any other credits associated with that person's account, of a person
that  elects   is required  to report
qualified use tax on an acceptable tax return shall be applied in the
following order:
   (1) Taxes imposed under Part 10 (commencing with Section 17001) or
Part 11 (commencing with Section 23001), including penalties and
interest, if any, imposed under Part 10.2 (commencing with Section
18041).
   (2) Qualified use tax reported on the acceptable tax return in
accordance with this section.
   (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) This section applies to purchases of tangible personal
property made on or after January 1,  2003  
2010  , in taxable years beginning on or after January 1,
 2003, and on or before December 31, 2009, and as of that
date becomes inoperative, unless a later enacted statute extends the
operation of this section   2010  . 
   (3) Notwithstanding this section becoming inoperative as described
in paragraph (2), any provisions in this section or Section 18510
relating to collection activities attributable to qualified use taxes
reported prior to the inoperative date of this section shall
continue in the same manner as if this section were still operative.

  SEC. 2.  Section 6453 of the Revenue and Taxation Code is amended
to read:
   6453.  For purposes of the sales tax, the return shall show the
gross receipts of the seller during the preceding reporting period
and, in the case of a person who is liable for the sales tax and is
not a seller, the gross receipts of such person for the period in
which the liability was incurred. For purposes of the use tax, in
case of a return filed by a retailer, the return shall show the total
sales price of the property sold by him or her, the storage, use, or
consumption of which property became subject to the use tax during
the preceding reporting period; in case of a return filed by a
purchaser,  e   xcept as provided in   Section
6452.1,  the return shall show the total sales price of the
property purchased by him or her, the storage, use, or consumption of
which became subject to the use tax during the preceding reporting
period.
   The return shall also show the amount of the taxes for the period
covered by the return and any other information which the board deems
necessary for the proper administration of this part.
  SEC. 3.  Section 6487.3 of the Revenue and Taxation Code is amended
to read:
   6487.3.  (a) (1) For persons that  elect  
are required  to report qualified use tax in accordance with
Section 6452.1, except in the case of fraud, intent to avoid this
part or authorized rules and regulations issued by the board, or the
gross understatement of qualified use taxes, every notice of a
deficiency determination with respect to the qualified use tax shall
be mailed within three years after the last day for which an
acceptable tax return is due or filed, whichever occurs later.
   (2) In the case of a gross understatement of qualified use tax,
every notice of a deficiency determination with respect to the
qualified use tax shall be mailed within six years after the last day
for which an acceptable tax return is due or filed, whichever occurs
later.
   (3) For purposes of this subdivision  ,  a "gross
understatement of qualified  used   use 
tax" is a deficiency that is in excess of 25 percent of the amount of
qualified use tax reported on a person's acceptable tax return. In
the case of married individuals filing separate California personal
income tax returns, the total amount of qualified use tax reported
will be considered in determining whether there is a gross
understatement of qualified use tax.
   (4) For purposes of this section  ,  "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.
   (b) This section applies to reporting of purchases of tangible
personal property made on or after January 1,  2003 
 2010  , in taxable years beginning on or after January 1,
 2003, and on or before December 31, 2009, and as of that
latter date becomes inoperative, unless a later enacted statute
extends the operation of this section   2010  .
  SEC. 4.  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   enable  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) 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   reports  qualified
use tax on an acceptable tax return shall be applied in the
following order:
   (1) Taxes imposed under Part 10 (commencing with Section 17001) or
Part 11 (commencing with Section 23001), including penalties and
interest, if any, imposed under this part.
   (2) Qualified use tax as reported on the acceptable tax return, in
accordance with Section 6452.1.
   (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) This section shall be operative for returns filed for taxable
years  on and   beginning on or  after
January 1,  2003, and ending on or before December 31, 2009,
and as of that date becomes inoperative, unless a later enacted
statute extends the operation of this section   2010
 .                                               
feedback