Today's Law As Amended


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SB-792 Sales and use tax: returns: online transactions: local jurisdiction schedule.(2021-2022)



As Amends the Law Today


SECTION 1.

 Section 6452.5 is added to the Revenue and Taxation Code, to read:

6452.5.
 (a) For purposes of this section, the following definitions shall apply:
(1) “Local jurisdiction” means the city or city and county in which the shipment or delivery address of the purchaser is located. If the purchaser’s shipment or delivery address is not located within a city or city and county, then “local jurisdiction” means the county in which the shipment or delivery address of the purchaser is located.
(2) “Qualified retailer” means a retailer that had qualified sales of tangible personal property transacted online that exceeded fifty million dollars ($50,000,000) in the preceding calendar year.
(3) “Qualified sale” means a retail sale of tangible personal property transacted online, the gross receipts from which are subject to both the sales tax imposed pursuant to Chapter 2 (commencing with Section 6051) and a local sales tax imposed in accordance with the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)), excluding any sale consummated at a retail store open to the public.
(b) For reporting periods beginning on or after January 1, 2022, a qualified retailer shall include with each tax return required to be filed pursuant to Section 6452 a schedule, in a form prescribed by the department, that reports for each local jurisdiction the gross receipts from the qualified sale of tangible personal property shipped or delivered to a purchaser in that jurisdiction.
(c) A sale is “transacted online” if both of the following conditions are met:
(1) The purchaser placed the order for the sale of tangible personal property on an internet website or web-based application that automatically processed the purchaser’s payment.
(2) The qualified retailer shipped or delivered the tangible personal property to an address provided by the purchaser, other than a location of the qualified retailer, pursuant to a contract of sale.
(d) A qualified retailer who fails or refuses to timely furnish a schedule required to be filed pursuant to subdivision (b) shall pay a penalty of five thousand dollars ($5,000).
(e) Except as provided in subdivision (d), a violation of this section shall not subject a person to any civil or criminal penalties pursuant to this part.