AB2556:v97#DOCUMENTBill Start
Amended
IN
Assembly
April 15, 2010
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Amended
IN
Assembly
April 05, 2010
|
|
CALIFORNIA LEGISLATURE—
2009–2010 REGULAR SESSION
Assembly Bill
No. 2556
Introduced by
Assembly Member
Fuller
|
February 19, 2010 |
An act to amend Section 6593.5 of the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2556, as amended, Fuller.
State Board of Equalization: administration: interest waiver: foreign purchases.
The Sales and Use Tax Law imposes 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. That law exempts from use tax, the storage, use, or the consumption of the first $800 of tangible personal property that is purchased in a foreign county country and hand-carried into this state within a 30- day period. That law requires the payment of interest at a specified rate on a failure to timely pay taxes, from the date on which those amounts became due and payable to the state until the date of payment. That law authorizes the State Board of
Equalization, in its discretion, to relieve all or any part of interest imposed under specified circumstances.
This bill would allow the members of the board, meeting as a public body, to relieve, for a taxpayer, as described, all or any part of the interest imposed on the failure to timely pay use tax on the storage, use, or other consumption of tangible personal property, where the board discovered the nonpayment as a result of obtaining information with respect to the liability from the United States Customs Service,
if the tax is remitted within 90 days of notification by the board.
Digest Key
Vote:
MAJORITY
Appropriation:
NO
Fiscal Committee:
YES
Local Program:
NO
Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 6593.5 of the Revenue and Taxation Code is amended to read:6593.5.
(a) The board, in its discretion, may relieve all or any part of the interest imposed on a person by this part under the following circumstances:(1) Where the failure to pay tax is due in whole or in part to an unreasonable error or delay by an employee of the board acting in his or her official capacity.
(2) Where failure to pay use tax on a vehicle or vessel registered with the Department of Motor Vehicles was the direct result of an error by the Department of Motor Vehicles in calculating the use tax.
(3) (A) Where use tax is remitted to the board within 90 days of the board notifying the taxpayer a person of a nonpayment of use tax, which notification is made as a result of the board obtaining information with respect to the liability from the United States Customs Service.
(B) This paragraph shall only apply to a person whose gross receipts from business operations is less than two hundred fifty thousand dollars ($250,000), or if the person has no business operations, to a person whose gross adjusted income is less than two hundred fifty thousand dollars ($250,000).
(C) For purposes of this paragraph, “board” means the members of the State Board
of Equalization meeting as a public body.
(b) For purposes of this section, an error or delay shall be deemed to have occurred only if no significant aspect of the error or delay is attributable to an act of, or a failure to act by, the taxpayer.
(c) Any person seeking relief under this section shall file with the board a statement under penalty of perjury setting forth the facts on which the claim for relief is based and any other information which the board may require.
(d) The board may grant relief only for interest imposed on tax liabilities that arise during taxable periods commencing on or after July 1, 1999.