Bill Text: CA AB698 | 2013-2014 | Regular Session | Amended

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Bill Title: Sales and use taxes: successor liability.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB698 Detail]

Download: California-2013-AB698-Amended.html

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BILL NUMBER: AB 698	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Member Grove

                        FEBRUARY 21, 2013

   An act to amend Section  7222   6812  of
the Revenue and Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 698, as amended, Grove. Sales and use taxes:  local
agencies: administration.   successor liability. 

   The Sales and Use Tax Law requires, if any person liable for any
amount under that law sells out his business or stock of goods or
quits the business, his or her successors or assigns to withhold a
sufficient amount of the purchase price to cover an amount equal to
that liability until the former owner produces a receipt from the
State Board of Equalization showing that it has been paid or a
certificate stating that an amount is not due. That law provides that
if the purchaser of a business or stock of goods fails to withhold
from the purchase price as required, he or she becomes personally
liable for the payment of the amount required to be withheld by him
or her to the extent of the purchase price, valued in money. 

   This bill would instead provide that the purchaser becomes
personally liable for the payment of the amount required to be
withheld by him or her to the extent of the purchaser price if the
purchaser of a business or stock of goods intentionally fails to
withhold from the purchase price.  
   The Sales and Use Tax Law imposes a tax on the storage, use, or
other consumption in this state of tangible personal property
purchased from any retailer. The Bradley-Burns Uniform Local Sales
and Use Tax Law permits cities and counties to impose local sales and
use taxes in conformity with the Sales and Use Tax Law. These local
taxes are administered by the State Board of Equalization pursuant to
a contract, as defined, with a local jurisdiction, as specified. The
term "contract" is defined as any agreement for state administration
of local sales and use taxes.  
   This bill would make a technical, nonsubstantive change to this
definition. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 6812 of the   Revenue
and Taxation Code   is amended to read: 
   6812.  (a) If the purchaser of a business or stock of goods 
intentionally  fails to withhold from the purchase price as
required, he or she becomes personally liable for the payment of the
amount required to be withheld by him or her to the extent of the
purchase price, valued in money.
   (b) (1) Within 60 days after the latest of the dates specified in
paragraph (2), the board shall either issue the certificate or mail
notice, to the purchaser at his or her address as it appears on the
records of the board, of the amount that must be paid as a condition
of issuing the certificate.
   (2) For purposes of paragraph (1), the latest of the following
dates shall apply:
   (A) The date the board receives a written request from the
purchaser for a certificate.
   (B) The date of the sale of the business or stock of goods.
   (C) The date the former owner's records are made available for
audit.
   (c) Failure of the board to mail the notice referred to in
subdivision (b) will release the purchaser from any further
obligation to withhold from the purchase price as above provided. The
last date upon which the obligation of the successor may be enforced
shall be not later than three years after the date the board is
notified of the purchase of the business or stock of goods. 
  SECTION 1.    Section 7222 of the Revenue and
Taxation Code is amended to read:
   7222.  For purposes of this chapter:
   (a) "Contract" means any agreement between a local jurisdiction
and the state for the administration of local sales and use taxes.
   (b) "Local jurisdiction" means any local agency authorized to
impose a tax under this part or in conformity with this part.
   (c) "Local tax" means any tax imposed by a local jurisdiction
under this part or any tax imposed in conformity with this part.