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SB-2230 Excise taxes.(1997-1998)

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SB2230:v97#DOCUMENT

Senate Bill No. 2230
CHAPTER 420

An act to amend Sections 6479.3, 8131, 9156, 30009, 30016, 30367, 32406, 40117, 41106, 43456, 45656, 46507, 55226, and 60525 of, and to add Section 50142.2 to, the Revenue and Taxation Code, relating to taxation.

[ Filed with Secretary of State  August 31, 1998. Approved by Governor  August 28, 1998. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 2230, Committee on Revenue and Taxation. Excise taxes.
The Sales and Use Tax Law requires any person whose estimated tax liability averages $20,000 or more per month to remit amounts due by electronic funds transfer, as provided. That law imposes specified penalties with respect to payment by electronic funds transfer. That law also imposes specified penalties with respect to nonpayment of taxes in general.
This bill would provide that with respect to payment by electronic funds transfer, only those penalties that specifically pertain to electronic funds transfer shall apply, as provided.
The Motor Vehicle Fuel License Tax Law, the Use Fuel Tax Law, the Cigarette and Tobacco Products 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, the Oil Spill Response, Prevention, and Administration Fees Law, the Fee Collection Procedures Law, and the Diesel Fuel Tax Law provide specified procedures for taxpayers and feepayers to file a claim for refund, and to request a deferral on their claims for refund, as provided. Those laws require the State Board of Equalization to either grant or deny credit interest for the entire period to which the deferral on the claim for refund relates.
This bill would authorize the board to require a taxpayer or feepayer to waive credit interest only during the period that the claim for refund is deferred, as provided.
The Cigarette and Tobacco Products Tax Law imposes taxes on the distribution of cigarette and tobacco products. That law defines distribution to include the use or consumption of untaxed cigarettes or tobacco products in this state, and defines use or consumption to include the exercise of any right or power over cigarettes or tobacco products incident to the ownership thereof, other than the specified sale for the purpose of sale.
This bill would provide that the exception for resale shall apply only to resales by a licensed distributor.
The Cigarette and Tobacco Products Tax Law defines a wholesaler to include specified persons.
This bill would clarify that a wholesaler includes any person, other than a licensed distributor, who engages in this state in making sales for resale, as specified.
This bill would result in a change in state taxes for the purpose of increasing state revenues within the meaning of Section 3 of Article XIII  A of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.

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


SECTION 1.

 Section 6479.3 of the Revenue and Taxation Code is amended to read:

6479.3.
 (a)  Any person whose estimated tax liability under this part averages twenty thousand dollars ($20,000) or more per month, as determined by the board pursuant to methods of calculation prescribed by the board, shall remit amounts due by an electronic funds transfer under procedures prescribed by the board. Any person who collects use tax on a voluntary basis is not required to remit amounts due by electronic funds transfer.
(b)  Any person whose estimated tax liability under this part averages less than twenty thousand dollars ($20,000) per month or any person who voluntarily collects use tax may elect to remit amounts due by electronic funds transfer with the approval of the board. The election shall be operative for a minimum of one year.
(c)  Any person remitting amounts due pursuant to subdivision (a) or (b) shall perform electronic funds transfer in compliance with the due dates set forth in Article 1 (commencing with Section 6451) and Article 1.1 (commencing with Section 6470). Payment is deemed complete on the date the electronic funds transfer is initiated, if settlement to the state’s demand account occurs on or before the banking day following the date the transfer is initiated. If settlement to the state’s demand account does not occur on or before the banking day following the date the transfer is initiated, payment is deemed to occur on the date settlement occurs.
(d)  Any person remitting taxes by electronic funds transfer shall, on or before the due date of the remittance, file a return for the preceding reporting period in the form and manner prescribed by the board. Any person who fails to timely file the required return shall pay a penalty of 10 percent of the amount of taxes, exclusive of prepayments, with respect to the period for which the return is required.
(e)  Any person required to remit taxes pursuant to this article who remits those taxes by means other than appropriate electronic funds transfer shall pay a penalty of 10 percent of the taxes incorrectly remitted.
(f)  Any person who fails to pay any tax to the state or any amount of tax required to be collected and paid to the state, except amounts of determinations made by the board under Article 2 (commencing with Section 6481) or Article 3 (commencing with Section 6511), within the time required shall pay a penalty of 10 percent of the tax or amount of tax, in addition to the tax or amount of tax, plus interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date on which the tax or the amount of tax required to be collected became due and payable to the state until the date of payment.
(g)  In determining whether a person’s estimated tax liability averages twenty thousand dollars ($20,000) or more per month, the board may consider tax returns filed pursuant to this part and any other information in the board’s possession.
(h)  The penalties imposed by subdivisions (d), (e), and (f) shall be limited to a maximum of 10 percent of the taxes due, exclusive of prepayments, for any one return. Any person remitting taxes by electronic funds transfer shall be subject to the penalties under this section and not Section 6591.
(i)  The board shall promulgate regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code for purposes of implementing this section.

SEC. 2.

 Section 8131 of the Revenue and Taxation Code is amended to read:

8131.
 (a)  If the board determines that any overpayment has been made intentionally or by reason of carelessness, it shall not allow any interest thereon.
(b)  If any person who has filed a claim for refund requests the board to defer action on the claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the person requests the board to defer action on the claim.

SEC. 3.

 Section 9156 of the Revenue and Taxation Code is amended to read:

9156.
 (a)  If the board determines that any overpayment has been made intentionally or by reason of carelessness, it shall not allow any interest thereon.
(b)  If any person who has filed a claim for refund requests the board to defer action on the claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the person requests the board to defer action on the claim.

SEC. 4.

 Section 30009 of the Revenue and Taxation Code is amended to read:

30009.
 “Use or consumption” includes the exercise of any right or power over cigarettes or tobacco products incident to the ownership thereof, other than the sale of the cigarettes or tobacco products or the keeping or retention thereof by a licensed distributor for the purpose of sale.

SEC. 5.

 Section 30016 of the Revenue and Taxation Code is amended to read:

30016.
 “Wholesaler” includes :
(a)  Any person, other than a licensed distributor, who engages in this state in making sales for resale of cigarettes that are contained in packages to which are affixed stamps or meter impressions.
(b)  Any person, other than a licensed distributor, who engages in this state in making sales for resale of tobacco products on which the tax imposed in Section 30123 has been paid.

SEC. 6.

 Section 30367 of the Revenue and Taxation Code is amended to read:

30367.
 (a)  If the board determines that any overpayment has been made intentionally or by reason of carelessness, it shall not allow any interest thereon.
(b)  If any person who has filed a claim for refund requests the board to defer action on the claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the person requests the board to defer action on the claim.

SEC. 7.

 Section 32406 of the Revenue and Taxation Code is amended to read:

32406.
 (a)  If the board determines that any overpayment has been made intentionally or by reason of carelessness, it shall not allow any interest thereon.
(b)  If any person who has filed a claim for refund requests the board to defer action on the claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the person requests the board to defer action on the claim.

SEC. 8.

 Section 40117 of the Revenue and Taxation Code is amended to read:

40117.
 (a)  If the board determines that any overpayment has been made intentionally or by reason of carelessness, it shall not allow any interest thereon.
(b)  If any person who has filed a claim for refund requests the board to defer action on the claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the person requests the board to defer action on the claim.

SEC. 9.

 Section 41106 of the Revenue and Taxation Code is amended to read:

41106.
 (a)  If the board determines that any overpayment has been made intentionally or by reason of carelessness, it shall not allow any interest thereon.
(b)  If any person who has filed a claim for refund requests the board to defer action on the claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the person requests the board to defer action on the claim.

SEC. 10.

 Section 43456 of the Revenue and Taxation Code is amended to read:

43456.
 (a)  If the board determines that any overpayment has been made intentionally or by reason of carelessness, it shall not allow any interest thereon.
(b)  If any person who has filed a claim for refund requests the board to defer action on the claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the person requests the board to defer action on the claim.

SEC. 11.

 Section 45656 of the Revenue and Taxation Code is amended to read:

45656.
 (a)  If the board determines that any overpayment has been made intentionally or by reason of carelessness, it shall not allow any interest thereon.
(b)  If any person who has filed a claim for refund requests the board to defer action on the claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the person requests the board to defer action on the claim.

SEC. 12.

 Section 46507 of the Revenue and Taxation Code is amended to read:

46507.
 (a)  If the board determines that any overpayment has been made intentionally or by reasons of carelessness, it shall not allow any interest thereon.
(b)  If any person who has filed a claim for refund requests the board to defer action on the claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the person requests the board to defer action on the claim.

SEC. 13.

 Section 50142.2 is added to the Revenue and Taxation Code, to read:

50142.2.
 (a)  If the board determines that any overpayment has been made intentionally or by reason of carelessness, it shall not allow any interest thereon.
(b)  If any person who has filed a claim for refund requests the board to defer action on the claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the person requests the board to defer action on the claim.

SEC. 14.

 Section 55226 of the Revenue and Taxation Code is amended to read:

55226.
 (a)  If the board determines that any overpayment has been made intentionally or by reason of carelessness, it shall not allow any interest thereon.
(b)  If any person who has filed a claim for refund requests the board to defer action on the claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the person requests the board to defer action on the claim.

SEC. 15.

 Section 60525 of the Revenue and Taxation Code is amended to read:

60525.
 (a)  If the board determines that any overpayment has been made intentionally or by reason of carelessness, it shall not allow any interest thereon.
(b)  If any person who has filed a claim for refund requests the board to defer action on the claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the person requests the board to defer action on the claim.