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SB-988 Aviation fuel.(2019-2020)

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Date Published: 02/12/2020 09:00 PM
SB988:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 988

Introduced by Senator McGuire
(Coauthor: Assembly Member Burke)

February 12, 2020

An act to amend Section 6592 of, and to add Sections 6452.3 and 6591.3 to, the Revenue and Taxation Code, relating to aviation.


LEGISLATIVE COUNSEL'S DIGEST


SB 988, as introduced, McGuire. Aviation fuel.
Existing sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. Existing law requires a seller or person subject to sales and use tax to file, on or before the last day of the month following each quarterly period, a return for the preceding quarterly period. Existing law provides that if the California Department of Tax and Fee Administration (the department) 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 for failing to file a return.
This bill would require an aviation fuel retailer to provide a quarterly information return, as specified, and would subject a retailer who fails to file that information return or who files an inaccurate information return to a penalty of $5,000. The bill would exempt from those penalties a person who fails to file a return or provides information or files an inaccurate return, if that person’s failure is due to reasonable cause and circumstances beyond the person’s control, notwithstanding the exercise of ordinary care and the absence of willful neglect. The bill would require the department to collect and disseminate, as specified, information from those information returns and calculate the amount of revenue collected from the sale, storage, use, or consumption of aviation fuel in the state. This bill would also require the department to report corresponding tax revenue information to local tax entities.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 6452.3 is added to the Revenue and Taxation Code, to read:

6452.3.
 (a) On or before the last day of the month next following each quarterly period, in addition to the returns due pursuant to Section 6452, a retailer of aviation fuel shall provide a quarterly information return, in the form prescribed by the department, which may include, but not be limited to, electronic media showing the information required for this state to comply with the Federal Aviation Administration’s “Policy and Procedures Concerning the Use of Airport Revenue; Proceeds from Taxes on Aviation Fuel” (79 Fed. Reg. 66282 (Nov. 7, 2014)), and any other information that the department determines to be necessary to comply with those policies and procedures.
(b) A retailer of aircraft jet fuel who fails or refuses to timely furnish an information return, or other data required by the department pursuant to subdivision (a), shall pay a penalty of five thousand dollars ($5,000).
(c) The information return required under this section shall not include any tax remittance and does not constitute a return required under Section 6452.
(d) The department shall collect information from the returns filed pursuant to subdivision (a) each quarter and calculate the amount of revenue, net of refunds, derived from the sale, storage, use, or consumption of aviation fuel in the state from taxes imposed pursuant to Section 35 of Article XIII of the California Constitution and Sections 6051.2, 6051.3, 6201.2, and 6201.3.
(e) The department shall notify quarterly the Department of Finance, the Joint Legislative Budget Committee, and the Controller of the amount of revenue, attributable to the tax collected from the sale, storage, use, or consumption of aviation fuel in the state calculated pursuant to subdivision (d).
(f) The department shall report quarterly to a city, county, city and county, or other governmental entity that imposes a tax in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), first imposed on or after January 1, 1987, and that applies to the sale of aircraft jet fuel, the amount of revenue from that tax derived with respect to aircraft jet fuel collected and distributed to that city, county, city and county, or other governmental entity, for the purposes of local compliance with the Federal Aviation Administration’s “Policy and Procedures Concerning the Use of Airport Revenue; Proceeds from Taxes on Aviation Fuel” (79 Fed. Reg. 66282 (Nov. 7, 2014)).

SEC. 2.

 Section 6591.3 is added to the Revenue and Taxation Code, to read:

6591.3.
 (a) An accuracy-related penalty shall be imposed under this part if a person fails to accurately disclose information in the information return required by Section 6452.3 such that the information return is substantially inconsistent with the return required under Section 6452, and that person shall pay a penalty of five thousand dollars ($5,000) for each return not accurately filed.
(b) The accuracy-related penalty imposed by this section shall not be assessed if the penalty of Section 6452.3 is imposed.

SEC. 3.

 Section 6592 of the Revenue and Taxation Code is amended to read:

6592.
 (a) (1) If the board department 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 6452.3, 6476, 6477, 6479.3, 6480.4, 6480.8, 6511, 6565, 6591, 7051.2, 7073, and 7074.
(2) If the department finds, with respect to the information return required by Section 6452.3, that a person’s failure to accurately disclose information or failure or refusal to furnish data required by the department 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 relevant penalties provided by Sections 6452.3 and 6591.3.
(b) Except as provided in subdivision (c) any (c), a person seeking to be relieved of the penalty shall file with the board department a statement under penalty of perjury setting forth the facts upon which he or she the person bases his or her the claim for relief.
(c) The board department shall establish criteria that provides for efficient resolution of requests for relief pursuant to this section.