Bill Text: CA SB884 | 2009-2010 | Regular Session | Amended
Bill Title: Sales and use taxes: use tax: administration.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2010-08-09 - In Assembly. Read first time. Held at Desk. [SB884 Detail]
Download: California-2009-SB884-Amended.html
BILL NUMBER: SB 884 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 15, 2010
AMENDED IN SENATE JUNE 16, 2010
AMENDED IN SENATE APRIL 22, 2010
AMENDED IN SENATE APRIL 12, 2010
INTRODUCED BY Senator Ashburn
(Coauthor: Senator Runner)
JANUARY 19, 2010
An act to amend Sections 6225 , 6459, and 6592
and 6459 of, and to add Sections 6225.1 and
6225.2 Section 6225.1 to, the Revenue and
Taxation Code, relating to taxation, and declaring the urgency
thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 884, as amended, Ashburn. Sales and use taxes: use tax:
administration.
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. In order to facilitate
the collection of the use tax, a qualified purchaser, as defined, is
required to register with the State Board of Equalization and to
report and pay by April 15 the use tax owed for the previous calendar
year, as provided.
This bill, for reporting periods commencing on and after January
1, 2010, would revise the above requirements to instead
provider provide that a qualified purchaser is
subject to other related provisions governing returns and payments
and would authorize the board, for the 2009 calendar year reporting
period only, to grant a reasonable extension of time for filing a
return when it determines that good cause exists pursuant to these
provisions. The bill would prohibit a penalty from being
imposed on a qualified purchaser's failure to timely remit use tax
for reporting periods in 2007, 2008, and 2009, if the qualified
purchaser remits payment of the use tax attributable to those periods
on or before March 15, 2011. The bill would also require the board
to refund any penalty paid with respect to those taxes, as
prescribed, provided that the qualified purchaser has paid all use
tax liability for those reporting periods on or before March 15,
2011. The bill would declare that its provisions and
retroactive application serve a public purpose, as specified.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6225 of the Revenue and Taxation Code is
amended to read:
6225. (a) In order to facilitate the collection of use tax
imposed by this part, a qualified purchaser shall register with the
board on a form prescribed by the board and shall set forth the name
under which the qualified purchaser transacts or intends to transact
business, the location of the qualified purchaser's place or places
of business, and other information that the board may require.
(b) (1) Article 1 (commencing with Section 6451) of Chapter 5 of
this part shall apply to a qualified purchaser, except that a return
showing the total sales price of the tangible personal property
purchased by the qualified purchaser, the storage, use, or other
consumption of which became subject to the use tax during the
preceding calendar year, and which was not paid to a retailer
required to collect the tax or which was not paid to a retailer the
qualified purchaser reasonably believed was required to collect the
tax, shall be filed, together with a remittance of the amount of the
tax due, with the board on or before April 15.
(2) For reporting periods on or after January 1, 2010, Article 1
(commencing with Section 6451) of Chapter 5 of this part shall apply
to a qualified purchaser, except that a return showing the total
sales price of the tangible personal property purchased by the
qualified purchaser, the storage, use, or other consumption of which
became subject to the use tax during the preceding calendar
year reporting period , and which was not paid
to a retailer required to collect the tax or which was not paid to a
retailer the qualified purchaser reasonably believed was required to
collect the tax, shall be filed, together with a remittance of the
amount of the tax due, with the board.
(c) A "qualified purchaser" means a person that meets all of the
following conditions:
(1) The person is not required to hold a seller's permit pursuant
to this part.
(2) The person is not required to be registered pursuant to
Section 6226.
(3) The person is not a holder of a use tax direct payment permit
as described in Section 7051.3.
(4) The person receives at least one hundred thousand dollars
($100,000) in gross receipts from business operations per calendar
year.
(5) The person is not otherwise registered with the board to
report use tax.
(d) This section shall not apply to the purchase of a vehicle,
vessel, or aircraft as defined in Article 1 (commencing with Section
6271) of Chapter 3.5 of this part.
SEC. 2. Section 6225.1 is added to the Revenue and Taxation Code,
to read:
6225.1. (a) For a return required to be filed for the 2009
calendar year only, for purposes of administering Section 6225, the
board may grant a reasonable extension of time for filing a return in
the manner and form it determines.
(1) For a qualified purchaser subject to the tax imposed by Part
10 (commencing with Section 17001), except for a qualified purchaser
residing or traveling abroad, an extension of time shall not be
granted for more than six months. For a qualified purchaser residing
or traveling abroad, a return shall be filed no later than the 15th
day of the sixth month following the close of the taxable year,
unless the requirements for an extension have been fulfilled on or
before that date.
(2) For a qualified purchaser subject to the tax imposed by Part
11 (commencing with Section 23001) no extension or extensions shall
aggregate more than seven months from the due date for filing the
return.
(b) An extension of time granted pursuant to this section is not
an extension of time for payment of the tax required to be paid on or
before the due date of the return without regard to extension.
Penalties and interest shall be imposed, as provided by law, without
regard to any extension granted under this section.
(c) A reasonable extension for payment of tax required by Section
6225 may be granted by the board whenever in its judgment good cause
exists.
SEC. 3. Section 6225.2 is added to the Revenue
and Taxation Code, to read:
6225.2. A penalty shall not be imposed on a qualified purchaser's
failure to timely remit use tax for reporting periods in 2007, 2008,
and 2009 unless the qualified purchaser fails to remit payment of
the use tax attributable to those periods on or before March 15,
2011. Notwithstanding Section 6902, any penalty paid to the board
with respect to use tax due for reporting periods in 2007, 2008, and
2009 shall be refunded to the qualified purchaser, as promptly as
feasible, provided that the qualified purchaser has paid all use tax
liability for those reporting periods on or before March 15, 2011.
This section shall not preclude the board from making any
determinations for understatements of use tax against the qualified
purchaser in accordance with Chapter 5 (commencing with Section
6451).
SEC. 4. SEC. 3. Section 6459 of the
Revenue and Taxation Code is amended to read:
6459. (a) Except as provided in Section 6225.1, the board for
good cause may extend for not to exceed one month the time for making
any return or paying any amount required to be paid under this part.
The extension may be granted at any time provided a request therefor
is filed with the board within or prior to the period for which the
extension may be granted.
Any person to whom an extension is granted shall pay, in addition
to the tax, interest at the modified adjusted rate per month, or
fraction thereof, established pursuant to Section 6591.5, from the
date on which the tax would have been due without the extension until
the date of payment.
(b) The board may grant an extension for more than one month if
both of the following conditions occur:
(1) A budget for the state has not been adopted by July 1.
(2) The person requesting the extension is a creditor of the state
who has not been paid because of the state's failure to timely adopt
a budget.
Any extension granted under this subdivision shall expire no later
than the last day of the month following the month in which the
budget is adopted or one month from the due date of the return or
payment, whichever comes later.
Any person to whom an extension has been granted under this
subdivision shall pay, in addition to the tax, interest at the
modified adjusted rate per month, or fraction thereof, established
pursuant to Section 6591.5, from the date on which the tax would have
been due without the extension until the date of payment. However,
no interest shall be due on that portion of the payment equivalent to
the amount due to the person from the state on the due date of the
payment.
SEC. 5. Section 6592 of the Revenue and
Taxation Code is amended to read:
6592. (a) Except as provided in Section 6225.2, if the board
finds that a person's failure to make a timely return or payment is
due to reasonable cause and circumstances beyond the person's
control, and occurred notwithstanding the exercise of ordinary care
and the absence of willful neglect, the person shall be relieved of
the penalties provided by Sections 6476, 6477, 6479.3, 6480.4,
6480.8, 6511, 6565, 6591, 7051.2, 7073, and 7074.
(b) Except as provided in subdivision (c) any person seeking to be
relieved of the penalty shall file with the board a statement under
penalty of perjury setting forth the facts upon which he or she bases
his or her claim for relief.
(c) The board shall establish criteria that provides for efficient
resolution of requests for relief pursuant to this section.
SEC. 6. SEC. 4. The Legislature finds
and declares that this act and its retroactive application are
necessary to serve a public purpose by ensuring the fair and
equitable treatment of taxpayers.
SEC. 7. SEC. 5. This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
In order to address problems relating to administration and
collection of the use tax and to prevent undue hardship to taxpayers,
it is necessary that this act take effect immediately.
