(1)
The California Tire Recycling Act authorizes the Integrated Waste Management Board to contract with the State Board of Equalization to collect the tire recycling fee. The Fee Collection Procedures Law governs the determination, collection, and refund of any fees administered by the State Board of Equalization.
This bill would authorize the State Board of Equalization to collect the tire recycling fee pursuant to the Fee Collection Procedures Law in the event the Integrated Waste Management Board contracts with the State Board of Equalization for collection.
(2)
Existing law prohibits any officer, employee, or agent of a state agency or department from requesting or receiving any copies of, or information contained in, financial records of any customer from a financial institution, except as specified. Existing law provides, as an exception to those privacy provisions, for the disclosure to the State Board of Equalization of financial information that is required by specified tax statutes to be disclosed to the board.
This bill would expand the exception to those privacy provisions by including additional references to certain tax statutes that require specified financial information to be disclosed to the State Board of Equalization.
(3)
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 and requires every person desiring to engage in or conduct business as a seller within this state to obtain a seller’s permit from the State Board of Equalization.
This bill would, if a specified provision of SB 531 is not enacted, exempt from the requirements to obtain a seller’s permit any person who engages in business in this state as a seller of hay, as specified, and who engages in no other taxable sales of tangible personal property at retail.
(3.5)
The Sales and Use Tax Law provides that every person storing, using, or otherwise consuming in this state tangible personal property purchased from a retailer is liable for the tax, but is relieved from liability for that tax if the person has a receipt from a retailer, as specified.
This bill would, in the case of a purchase of a vessel or aircraft from another person through a broker, relieve the purchaser of liability for the tax, as specified, and impose liability upon the broker as if the broker were a retailer, as specified.
(4)
The Sales and Use Tax Law also requires every retailer engaged in business in this state, as specified, to collect the tax from the purchaser. For purposes of those provisions, a “retailer engaged in business in this state” includes any retailer soliciting orders for tangible personal property by mail, as specified, and any retailer owned or controlled by the same interests that own or control any retailer engaged in business in the same or a similar line of business in this state.
This bill would exclude from the definition of a “retailer engaged in business in this state” any retailer owned or controlled by the same interests that own or control any retailer engaged in business in the same or a similar line of business in this state. This bill would make the inclusion of any retailer soliciting orders for tangible personal property by mail within the definition of “retailer engaged in business in this state,” operative only as provided. This bill would also make specified technical changes pertaining to the operative date of the provisions providing an exclusion from the term “retailer engaged in business in this state.”
(5)
The Sales and Use Tax Law provides various exemptions from that tax, including an exemption for the sale of a vessel or of an aircraft when the retailer is not required to hold a seller’s permit, as specified.
This bill would provide that the above exemption shall not apply to any sale of a vessel or an aircraft when a broker arranges the sale between 2 private parties and the broker collects sales tax reimbursement on the transaction.
(6)
Under the Sales and Use Tax Law, the Use Fuel Tax Law, the Alcoholic Beverage Tax Law, the Energy Resources Surcharge Law, the Emergency Telephone Users Surcharge Act, the Hazardous Substances Tax Law, the Integrated Waste Management Fee Law, and the Underground Storage Tank Maintenance Fee Law, the Taxpayers’ Rights Advocate is authorized to order the release of a levy or notice to withhold upon his or her finding that the levy or notice to withhold threatens the health or welfare of the taxpayer, or his or her spouse and dependents or family.
This bill would additionally authorize the Taxpayers’ Rights Advocate to order, within 90 days of the receipt of funds pursuant to a levy or notice to withhold, the return of any amount not exceeding $1,500, upon a finding that the levy or notice to withhold threatens the health or welfare of the taxpayer, or his or her spouse and dependents or family.
(7)
Existing law requires distributors of motor vehicle fuel, upon notice by the State Board of Equalization, to collect prepayment of sales taxes from the person to whom the fuel is distributed, at a specified rate that includes certain state and local sales and use taxes imposed under the Revenue and Taxation Code.
This bill would include the sales and use tax imposed under the California Constitution in that rate of prepayment of sales and use taxes.
(8)
Existing law authorizes the State Board of Equalization to contract for debt collection services with persons outside of California.
This bill would also authorize the board to contract with persons outside of California for the identification of persons or businesses who may owe taxes or other amounts.
(9)
Existing law provides that, in a suit for refund under the Motor Vehicle Fuel License Tax Law and the Use Fuel Tax Law, if judgment is rendered for a plaintiff, any refund is applied first to amounts owed under one or both of those tax laws, as specified, and the balance is refunded to the plaintiff.
This bill would require that any refund be applied to amounts owed under those fuel tax laws and the Diesel Fuel Tax Law before the balance is refunded to the plaintiff.
(10)
Under existing law, in addition to the taxes imposed on fuels pursuant to the Motor Vehicle Fuel License Tax Law and the Use Fuel Tax Law, a tax may be imposed by a local taxing entity for local public transit, as specified.
This bill would provide that the tax by a local taxing entity may also be imposed in addition to the tax imposed on fuels pursuant to the Diesel Fuel Tax Law. The bill would require any person required to pay a tax under the Diesel Fuel Tax Law to collect the motor vehicle fuel tax imposed by a local taxing entity from any person to whom he or she sells diesel fuel and to pay that tax for all diesel fuel that he or she uses, as specified.
(11)
The Motor Vehicle Fuel License Tax Law provides that, in any judgment, interest shall be allowed on the amount of the license tax found to have been illegally collected, as specified.
This bill would, instead, provide that interest shall be allowed on the amount found to have been illegally collected, as specified.
(12)
The Use Fuel Tax Law requires a user of fuel within this state to secure a use fuel tax permit and provides a $500 penalty for violation of that requirement.
This bill would eliminate that penalty.
(13)
Existing law provides that with respect to various taxes administered by the State Board of Equalization, that every taxpayer is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before that board if the taxpayer files a claim with the State Board of Control, the State Board of Equalization finds that action by board staff was unreasonable, the State Board of Equalization determines and recommends a specific amount of fees and expenses be awarded to the taxpayer, and the State Board of Control concurs with the recommendation, as specified. Existing law also requires the State Board of Equalization to certify the amount of any erroneous or illegal collection, computation, or determination that is in excess of $50,000 to the State Board of Control for approval before it is credited, canceled, or refunded to the person entitled.
This bill would delete the participation of the State Board of Control in those processes, and would instead require that claims be filed with the State Board of Equalization for determination and award. The bill would require that any proposed award or determination, as specified, be available as a public record for at least 10 days prior to the effective date of the award or determination.
(14)
The Cigarette and Tobacco Products Tax Law imposes a tax on the sale or transfer of untaxed cigarettes.
This bill would exempt from that tax the sale or transfer of untaxed cigarettes to a law enforcement agency for use in a criminal investigation, when authorized by the State Board of Equalization. The bill would also exempt the agency from obtaining a license as a distributor and from collecting or remitting the tax or surcharge with respect to authorized distributions.
(15)
The Cigarette and Tobacco Products Tax Law requires that the State Board of Equalization give notice, as specified, upon seizure of any property consisting of cigarettes, tobacco products, and vending machines, as specified, by personal service, registered or certified mail, or, in the case of unknown persons or persons known but who cannot be found, by publication, as specified.
This bill would delete provisions permitting service by certified mail, and would also delete the requirement that notice be given to unknown persons or persons known but who cannot be found when the amount of cigarettes is less than 61 cartons of 200 cigarettes each, or an equivalent amount of tobacco products.
(16)
Under the Alcoholic Beverages Tax Law, if taxes have been paid on beer or wine subsequently destroyed under the supervision of a State Board of Equalization representative, the taxpayer may claim a credit with respect to those taxes.
This bill would permit a beer manufacturer located in this state to claim a credit for excise taxes paid on tax paid beer returned by a licensed wholesaler and subsequently destroyed by the beer manufacturer under the supervision of a State Board of Equalization representative, if the manufacturer has credited the licensed wholesaler the amount of the tax.
(17)
Under the Alcoholic Beverage Tax Law, the State Board of Equalization is authorized to change the reporting period for an alcoholic beverage taxpayer from monthly to quarterly or annually, depending on the taxpayer’s business, if the average monthly tax liability is less than $100.
This bill would eliminate the tax liability limitation.
(18)
The Energy Resources Surcharge Law requires that any overpayment of the surcharge by a consumer to the state shall be credited or refunded by the state to the consumer.
This bill would permit, as specified, the overpayment to be credited or refunded by the state to an electric utility that is required to collect the surcharge.
(19)
The Emergency Telephone Users Surcharge Law imposes a penalty of 10% or $10, whichever is greater, on a taxpayer who does not pay a determination when it becomes final.
This bill would allow the State Board of Equalization to relieve a taxpayer from that penalty for reasonable cause.
(20)
The Diesel Fuel Tax Law imposes a tax upon the removal, entry, sale, delivery, and specified use of diesel fuel, as provided. The law defines various terms in connection with the tax imposed therein.
This bill would eliminate the definition of “delivery.” The bill would also revise the definition of “highway vehicle operator” to include an interstate trucker, and would make a technical change in the definition of a “qualified motor vehicle.” With respect to the tax imposed, the bill would eliminate the requirement that the diesel fuel be delivered into the fuel tank in this state. The bill would change the penalty for failure to provide or post the required notice with respect to any dyed diesel fuel from a misdemeanor to a penalty, as provided, and establish a presumption that any person who fails to provide this notice is presumed to know that the diesel fuel will be used for a taxable use.
The bill would require claims for refunds for tax paid for diesel fuel used in a nontaxable use or for use for farming purposes or in an exempt bus operation to be made on a form prescribed by the State Board of Equalization and filed, as specified.
The bill would require the payment of interest on any overpayment of tax from the first, instead of the last, day of the calendar month following the reporting period during which the overpayment is made, as specified.
This bill would also make specified technical changes to various provisions of the Diesel Fuel Tax Law.
(21)
Existing law authorizes the State Board of Equalization, on behalf of the state and with the approval of the Department of Finance, to become a party to a reciprocal fuel tax agreement between this state and another jurisdiction, as defined, providing for the administration, collection, and enforcement by a party to the agreement of fuel taxes imposed by another jurisdiction, and for the forwarding of collections to the taxing jurisdiction. Existing law provides that the fuels that may be the subject of the agreement are those specified by the Motor Vehicle Fuel License Tax Law and the Use Fuel Tax Law and taxes of a similar nature imposed by another jurisdiction, which is defined as this state, any other state, the District of Columbia, or a province or territory of Canada.
This bill would provide that the fuels that may be the subject of the agreement are those specified by the Use Fuel Tax Law and the Diesel Fuel Tax Law, and taxes of a similar nature imposed by another jurisdiction under its laws. This bill would expand the definition of the term “jurisdiction” to include any governmental entity.
(22)
The International Fuel Tax Agreement (IFTA) is an agreement, among those jurisdictions that adopt it, for the uniform collection and distribution of fuel use tax revenues.
This bill would amend various provisions of the Use Fuel Tax Law and the Diesel Fuel Tax Law in order to apply those laws in conjunction with the IFTA, including, among other things, changes that would apply those laws and the IFTA to interstate users, as provided.
(23)
The bill would make additional technical, clarifying changes.
(24)
This bill would incorporate additional changes in Sections 8777, 8803, 8876, 9155, and 60524 of the Revenue and Taxation Code, proposed by AB 1940, to be operative if AB 1940 and this bill are both chaptered and become effective January 1, 1996, and this bill is chaptered last.