Bill Text: CA AB919 | 2013-2014 | Regular Session | Chaptered
Bill Title: Sales and use taxes: veterans: itinerant vendors: repayment.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Passed) 2014-09-27 - Chaptered by Secretary of State - Chapter 643, Statutes of 2014. [AB919 Detail]
Download: California-2013-AB919-Chaptered.html
BILL NUMBER: AB 919 CHAPTERED
BILL TEXT
CHAPTER 643
FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2014
APPROVED BY GOVERNOR SEPTEMBER 27, 2014
PASSED THE SENATE AUGUST 21, 2014
PASSED THE ASSEMBLY AUGUST 22, 2014
AMENDED IN SENATE AUGUST 4, 2014
AMENDED IN SENATE JUNE 24, 2014
AMENDED IN SENATE MAY 23, 2014
AMENDED IN ASSEMBLY JANUARY 29, 2014
AMENDED IN ASSEMBLY JANUARY 17, 2014
AMENDED IN ASSEMBLY JANUARY 6, 2014
INTRODUCED BY Assembly Member Williams
FEBRUARY 22, 2013
An act to add Section 6018.2 to the Revenue and Taxation Code,
relating to taxation, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 919, Williams. Sales and use taxes: veterans: itinerant
vendors: repayment.
Existing sales and use tax laws impose a tax on retailers measured
by the gross receipts from the sale of tangible personal property
sold at retail in this state, or on 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,
measured by sales price. That law, with certain exceptions, defines
a retailer as a seller who makes any retail sale of tangible personal
property and as a person who makes more than 2 retail sales of
tangible personal property during any 12-month period, and defines a
retail sale as a sale of tangible personal property for any purpose
other than resale in the regular course of business.
Existing law, from April 1, 2010, to January 1, 2022, provides
that a qualified itinerant vendor, as defined, is a consumer, and not
a retailer, of tangible personal property owned and sold by the
qualified itinerant vendor, except for alcoholic beverages or items
sold for more than $100, so that the retail sale subject to tax is
the sale of tangible personal property to the qualified itinerant
vendor and not the sale by the qualified itinerant vendor.
This bill would provide a procedure for a qualified veteran, who
is a person who met specified requirements for being a qualified
itinerant vendor, to submit a claim for qualified repayments, as
defined, with the State Board of Equalization, as provided. This bill
would, on or before March 1, 2016, require the board to certify to
the Controller the amount of qualified repayments to be made to each
qualified veteran, and would appropriate $50,000 from the General
Fund to the board to make the payments of qualified repayments. This
bill would limit the total amount of money available to make
qualified repayments to not more than $50,000. This bill would
require the board to report to the Joint Legislative Budget
Committee, the Assembly Committee on Revenue and Taxation, and the
Senate Committee on Governance and Finance, the name of each
qualified veteran who was issued a qualified repayment and the amount
of the qualified repayment. This bill would require the Controller
to transfer any balance remaining from the amount reported to the
Controller back to the General Fund.
This bill would make findings regarding the public purpose served
by the bill.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Prior to the enactment of Chapter 621 of the Statutes of 2009
(Senate Bill 809 of the 2009-10 Regular Session), which became
operative on April 1, 2010, there was considerable uncertainty among
honorably discharged veterans with respect to their responsibilities
under California's Sales and Use Tax Law. These veterans relied upon
Section 16102 of the Business and Professions Code, which exempts
honorably discharged veterans from payment of any license, tax or fee
whatsoever, for their sales of goods, wares, or merchandise owned by
them (except alcoholic beverages), and as a result, failed to pay
sales tax or to collect sales tax reimbursement on their retail
sales.
(b) This uncertainty resulted in deficiency assessments by the
State Board of Equalization against these veterans and subsequent
payments to the board by these veterans of the tax, interest, and
penalty for amounts that the board determined to be due.
(c) For the public purpose of assuring equity in the payment of
sales tax among qualified veterans for tangible personal property
owned and sold by those veterans for one hundred dollars ($100) or
less, excluding alcoholic beverages, it is the intent of the
Legislature that the sales tax, interest, and any penalties paid by
these veterans on those sales during the period on and after April 1,
2002, and before April 1, 2010, for which there was no sales tax
reimbursement collected from customers, be repaid in accordance with
the provisions of this act.
SEC. 2. Section 6018.2 is added to the Revenue and Taxation Code,
to read:
6018.2. (a) A qualified veteran may receive from the state a
qualified repayment if all provisions of this section are satisfied.
(b) The procedures set forth in this section shall be the
procedure and remedy for the claims for a repayment of taxes,
interest, or penalties paid by a qualified veteran under the Sales
and Use Tax Law (Part 1 (commencing with Section 6001)), Section 35
of Article XIII of the California Constitution, local sales tax
imposed in accordance with the Bradley-Burns Uniform Local Sales and
Use Tax Law (Part 1.5 (commencing with Section 7200)), and local
transactions and use taxes imposed in accordance with the
Transactions and Use Tax Law (Part 1.6 (commencing with Section
7251)) during the eight-year period beginning on and after April 1,
2002, and before April 1, 2010.
(c) (1) For purposes of this section, a "qualified veteran" means
a person who meets all of the following requirements:
(A) The person met the requirements of a qualified itinerant
vendor as set forth in Section 6018.3 during the period in which the
sales were made.
(B) The person paid to the board taxes imposed under the Sales and
Use Tax Law (Part 1 (commencing with Section 6001)), Section 35 of
Article XIII of the California Constitution, taxes imposed in
accordance with the Bradley-Burns Uniform Local Sales and Use Tax Law
(Part 1.5 (commencing with Section 7200)), and transactions and use
taxes imposed in accordance with the Transactions and Use Tax Law
(Part 1.6 (commencing with Section 7251)) during the period beginning
April 1, 2002, and before April 1, 2010, for which no sales tax
reimbursement was collected from customers, and also paid any
interest or penalties associated with those tax liabilities.
(2) "Qualified repayment" means an amount equal to the amount
described in subparagraph (B) of paragraph (1), less any amounts
previously refunded, credited, or paid to a qualified veteran through
any means whatsoever.
(d) (1) Before January 1, 2016, a qualified veteran may file a
claim for a qualified repayment with the board.
(2) The claim shall be in writing, and shall be completed in
accordance with any instructions or regulations as the board may
prescribe, including, but not limited to, proof of payment of the
tax, interest, or penalties described in subparagraph (B) of
paragraph (1) of subdivision (c).
(3) On or before March 1, 2016, the board shall certify to the
Controller the amount of qualified repayments to be made to each
qualified veteran pursuant to this section. The total amount of money
available to make qualified repayments shall not exceed fifty
thousand dollars ($50,000). If the total amount of claims filed
exceeds fifty thousand dollars ($50,000), the board shall determine
the pro rata share due to each qualified veteran based on the
proportion each claim bears to the total amount of claims and shall
report that amount for certification.
(4) There is hereby appropriated fifty thousand dollars ($50,000)
from the General Fund to the board to make the payments of qualified
repayments to qualified veterans.
(5) No interest shall be paid on any qualified repayment made
pursuant to this section.
(6) (A) On or before May 1, 2016, the board shall report to the
Joint Legislative Budget Committee, the Assembly Committee on Revenue
and Taxation, and the Senate Committee on Governance and Finance,
the name of each qualified veteran who was issued a qualified
repayment pursuant to this section and the amount of the qualified
repayment.
(B) The requirement for submitting a report imposed under
subparagraph (A) is inoperative on May 1, 2020, pursuant to Section
10231.5 of the Government Code, and the report shall be submitted in
compliance with Section 9795 of the Government Code.
(7) Upon notification by the board, the Controller shall transfer
any balance remaining from the amount appropriated in paragraph (4)
back to the General Fund.
SEC. 3. The Legislature finds and declares that the addition of
Section 6018.2 of the Revenue and Taxation Code by this act serves a
public purpose, as described in Section 1 of this act, and does not
constitute a gift of public funds within the meaning of Section 6 of
Article XVI of the California Constitution.
