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AB-1205 Taxation. (2017-2018)

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Date Published: 02/17/2017 09:00 PM
AB1205:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1205


Introduced by Assembly Member Ridley-Thomas

February 17, 2017


An act to amend Section 30142 of the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


AB 1205, as introduced, Ridley-Thomas. Taxation.
The Cigarette and Tobacco Products Tax Law requires distributors of cigarette and tobacco products to be licensed by the State Board of Equalization and requires a distributor that desires to defer payments for stamps or meter register settings to furnish a security deposit, subject to certain requirements, to the board. Existing law, upon authorization by the board, provides that no additional security shall be required for a distributor that desires to defer payments for stamps or meter register settings, as provided, if the distributor’s average monthly purchase of stamps or meter register settings for the previous 12 months does not exceed a specified amount and if the distributor meets certain requirements, including, among others, a requirement that the distributor has not been delinquent in the filing of any reports or returns, as specified, for the preceding 3 consecutive years.
This bill would extend the period of time in which a distributor must not be delinquent in the filing of reports or returns from 3 years to 4 years.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 30142 of the Revenue and Taxation Code is amended to read:

30142.
 (a) The board shall fix the amount of the security required of any distributor and may increase or reduce the amount at any time. A minimum security in the amount of one thousand dollars ($1,000) shall be furnished by every distributor that is required to be licensed.
(b) Except as provided in subdivision (d), if a distributor desires to defer payments for stamps or meter register settings, as provided in Article 2 (commencing with Section 30166) of Chapter 3.5, the board shall require a security as follows:
(1) If a distributor elects, under Section 30168, to make payments on a monthly basis, the board shall require a security equal to not less than 70 percent of the amount and no more than twice the amount, as fixed by the board, of the distributor’s purchases of stamps and meter register settings for which payment may be deferred.
(2) If a distributor elects, under Section 30168, to make payments on a twice-monthly basis, the board shall require a security equal to not less than 50 percent of the amount and no more than twice the amount, as fixed by the board, of the distributor’s purchases of stamps and meter register settings for which payment may be deferred.
(3) If a distributor elects, under Section 30168, to make payments on a weekly basis, the board shall require a security equal to not less than 25 percent of the amount and no more than twice the amount, as fixed by the board, of the distributor’s purchases of stamps and meter register settings for which payment may be deferred.
(c) The security required by the board pursuant to subdivision (b) may be in the form of any of the following, in the amount required by paragraph (1) or (2) of subdivision (b):
(1) Cash, or a cash equivalent.
(2) A surety bond.
(d) Upon authorization by the board, no additional security shall be required for a distributor that desires to defer payments for stamps or meter register settings, as provided in Article 2 (commencing with Section 30166) of Chapter 3.5, if the distributor’s average monthly purchase of stamps or meter register settings for the previous 12 months does not exceed seventy-two thousand (72,000) stamps or meter register settings and if the distributor meets all of the following:
(1) Has been licensed under this part for a minimum of five years.
(2) Has not been delinquent in the filing of any reports or returns required under this part for the preceding three four consecutive years.
(3) Has not been delinquent in the payment of any tax under this part, or for any other tax or fee administered or collected by the board, for the preceding three consecutive years.
(4) Provides to the board and updates, as necessary, an electronic mail address for the purpose of receiving payment information, including, but not limited to, amounts owing for stamps and meter register settings purchased.
(5) Any other criteria the board may require.