BILL NUMBER: AB 469 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 17, 2009
AMENDED IN SENATE JULY 15, 2009
AMENDED IN SENATE JUNE 18, 2009
AMENDED IN ASSEMBLY APRIL 2, 2009
INTRODUCED BY Assembly Member Eng
(Coauthor: Assembly Member Evans)
(Coauthor: Senator Wolk)
FEBRUARY 24, 2009
An act to amend Sections 6452.1, 6453, 6487.3, and 18510 of the
Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 469, as amended, Eng. Sales and use taxes: qualified use tax
payment.
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.
Existing law requires retailers, as specified, to register with the
State Board of Equalization, and requires that board to issue forms
for the computation and payment of sales and use taxes collected or
owed by those retailers. For taxable years beginning on January 1,
2003, and ending on December 31, 2009, existing law authorizes a
person to make an irrevocable election to report qualified use tax,
as defined, on that person's income tax form. Existing law requires
the Franchise Tax Board to include space on income tax returns to
allow a person to report and remit qualified use taxes to the
Franchise Tax Board, and requires the Franchise Tax Board to remit
the qualified use taxes collected to the State Board of Equalization.
This bill would revise the provisions relating to use tax
reporting on an income tax return to instead require every person
subject to qualified use tax, as defined, to report and remit that
tax on an acceptable tax return, as specified. This bill would
require the Franchise Tax Board to revise the income tax form to
enable a person to report and remit qualified use tax. This bill
would also make conforming changes to related provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6452.1 of the Revenue and Taxation Code is
amended to read:
6452.1. (a) Notwithstanding Section 6451, every person that
purchases tangible personal property, the storage, use, or other
consumption of which is subject to qualified use tax, as defined in
subdivision (d), that is otherwise required to report and remit that
tax pursuant to this part and fails to do so, shall report and remit
qualified use tax on an acceptable tax return.
(b) (1) In the case of a married individual filing a separate
California personal income tax return, an election may be made to
report either one-half of the qualified use tax or the entire
qualified use tax on his or her separate California personal income
tax return.
(2) If an individual elects to report one-half of the qualified
use tax, that election will not be binding with respect to the
remaining one-half of the qualified use tax owed by that individual
and that individual's spouse.
(c) An acceptable tax return that contains use tax shall be
considered a tax return for purposes of this part.
(d) For purposes of this section:
(1) "Acceptable tax return" means a timely filed original return
that is filed pursuant to Article 1 (commencing with Section 18501),
Article 2 (commencing with Section 18601), Section 18633, Section
18633.5 of Chapter 2 (commencing with Section 18501) of Part 10.2, or
Article 3 (commencing with Section 23771) of Chapter 4 of Part 11.
(2) (A) Except as provided in subparagraph (B), "qualified use tax"
means:
(i) For one or more single nonbusiness purchases of individual
items of tangible personal property with a sales price of less than
one thousand dollars ($1,000), either of the following:
(I) The use tax imposed under this part, Section 35 of Article
XIII of the California Constitution, the Bradley-Burns Uniform Local
Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)), or
the Transactions and Use Tax Law (Part 1.6 (commencing with Section
7251)) that has not been paid to a retailer holding a seller's permit
or certificate of registration-use tax.
(II) The estimated amount of use tax due based on the person's
California taxable adjusted gross
income as reflected in the use tax table shown in the accompanying
instructions of the acceptable tax return.
(ii) For one or more single nonbusiness purchases of individual
items of tangible personal property with a sales price of one
thousand dollars ($1,000) or more, or for any tangible personal
property purchased for use in a trade or business, the amount of use
tax imposed under this part, Section 35 of Article XIII of the
California Constitution, the Bradley-Burns Uniform Local Sales and
Use Tax Law (Part 1.5 (commencing with Section 7200)), or the
Transactions and Use Tax Law (Part 1.6 (commencing with Section
7251)) that has not been paid to a retailer holding a seller's permit
or certificate of registration-use tax.
(B) "Qualified use tax" does not include:
(i) Use tax that applies to a mobilehome or a commercial coach
that is required to be registered annually pursuant to the Health and
Safety Code or use tax that applies to a vehicle subject to
identification under Division 16.5 (commencing with Section 38000) of
the Vehicle Code, or to a vehicle that qualifies under the permanent
trailer identification plate program pursuant to subdivision (a) of
Section 5014.1 of the Vehicle Code.
(ii) Use tax imposed on a vehicle, vessel, or aircraft.
(iii) Use tax imposed on a lessee of tangible personal property.
(iv) Use tax imposed on a purchase of cigarettes, tobacco
products, or cigarettes and tobacco products for which the purchaser
is registered with the board as a cigarette consumer, a tobacco
products consumer, or a cigarette and tobacco products consumer.
(e) (1) A person that is required to report qualified use tax on
an acceptable tax return shall report and remit the qualified use tax
by reporting the amount due based on all taxable purchases of
tangible personal property made during the taxable year for which the
acceptable tax return is required to be filed. A person that has
made one or more single nonbusiness purchases of individual items of
tangible personal property each with a sales price of less than one
thousand dollars ($1,000) may satisfy his or her tax liability for
those purchases by using the use tax table shown in the accompanying
instructions of the acceptable tax return.
(2) Any other person required to file a return pursuant to Article
1 (commencing with Section 18501) or Article 2 (commencing with
Section 18601) of Chapter 2, Section 18633 or Section 18633.5 of
Article 4, of Chapter 2 of Part 10.2, or Article 3 (commencing with
Section 23771) of Chapter 4 of Part 11, that is not required to
report qualified use tax on an acceptable tax return pursuant to this
section shall designate a "0" on the space provided on the return
for use tax.
(f) (1) The penalties and interest imposed under this part, the
Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5
(commencing with Section 7200)), or the Transactions and Use Tax Law
(Part 1.6 (commencing with Section 7251)) shall apply to use tax
reported as qualified use tax on an acceptable return.
(2) Any claims for refunds or credits of any use tax reported as
qualified use tax on an acceptable tax return shall be made in
accordance with Chapter 7 (commencing with Section 6901) of this
part.
(3) Qualified use tax shall be considered to be timely reported
and remitted for purposes of this part, the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section
7200)), and the Transactions and Use Tax Law (Part 1.6 (commencing
with Section 7251)), if the qualified use tax is timely reported on
and remitted with an acceptable tax return in accordance with the
provisions of this section.
(g) Notwithstanding a person's payment of qualified use tax on an
acceptable tax return, the State Board of Equalization is not
precluded from making any determinations for understatements of
qualified use tax against that person in accordance with Part 5
(commencing with Section 6451). However, with respect to one or more
single nonbusiness purchases of individual items of tangible personal
property with a sales price of less than one thousand dollars
($1,000), the board shall be precluded from making any such
determination against any person that uses the use tax table for
purposes of satisfying his or her use tax liability when the person
uses that table in accordance with the accompanying instructions.
(h) Any payments and credits shown on the return, together with
any other credits associated with that person's account, of a person
that is required to report qualified use tax on an acceptable tax
return shall be applied in the following order:
(1) Taxes imposed under Part 10 (commencing with Section 17001) or
Part 11 (commencing with Section 23001), including penalties and
interest, if any, imposed under Part 10.2 (commencing with Section
18041).
(2) Qualified use tax reported on the acceptable tax return in
accordance with this section.
(i) (1) This section does not apply to a person who is otherwise
required to hold a seller's permit or to register with the State
Board of Equalization pursuant to Part 1 (commencing with Section
6001) of this division.
(2) This section applies to purchases of tangible personal
property made on or after January 1, 2010, in taxable years beginning
on or after January 1, 2010.
SEC. 2. Section 6453 of the Revenue and Taxation Code is amended
to read:
6453. For purposes of the sales tax, the return shall show the
gross receipts of the seller during the preceding reporting period
and, in the case of a person who is liable for the sales tax and is
not a seller, the gross receipts of such person for the period in
which the liability was incurred. For purposes of the use tax, in
case of a return filed by a retailer, the return shall show the total
sales price of the property sold by him or her, the storage, use, or
consumption of which property became subject to the use tax during
the preceding reporting period; in case of a return filed by a
purchaser, except as provided in Section 6452.1, the return shall
show the total sales price of the property purchased by him or her,
the storage, use, or consumption of which became subject to the use
tax during the preceding reporting period.
The return shall also show the amount of the taxes for the period
covered by the return and any other information which the board deems
necessary for the proper administration of this part.
SEC. 3. Section 6487.3 of the Revenue and Taxation Code is amended
to read:
6487.3. (a) (1) For persons that are required to report qualified
use tax in accordance with Section 6452.1, except in the case of
fraud, intent to avoid this part or authorized rules and regulations
issued by the board, or the gross understatement of qualified use
taxes, every notice of a deficiency determination with respect to the
qualified use tax shall be mailed within three years after the last
day for which an acceptable tax return is due or filed, whichever
occurs later.
(2) In the case of a gross understatement of qualified use tax,
every notice of a deficiency determination with respect to the
qualified use tax shall be mailed within six years after the last day
for which an acceptable tax return is due or filed, whichever occurs
later.
(3) For purposes of this subdivision, a "gross understatement of
qualified use tax" is a deficiency that is in excess of 25 percent of
the amount of qualified use tax that is reported on a person's
acceptable tax return. In the case of married individuals filing
separate California personal income tax returns, the total amount of
qualified use tax that is reported will be considered in determining
whether there is a gross understatement of qualified use tax.
(4) For purposes of this section, "acceptable tax return" means a
timely filed original return that is filed pursuant to Article 1
(commencing with Section 18501), Article 2 (commencing with Section
18601), Section 18633, Section 18633.5 of Chapter 2 (commencing with
Section 18501) of Part 10.2, or Article 3 (commencing with Section
23771) of Chapter 4 of Part 11.
(b) This section applies to reporting of purchases of tangible
personal property made on or after January 1, 2010, in taxable years
beginning on or after January 1, 2010.
SEC. 4. Section 18510 of the Revenue and Taxation Code is amended
to read:
18510. (a) (1) The Franchise Tax Board shall revise the returns
required to be filed pursuant to this article, Article 2 (commencing
with Section 18601), Section 18633, Section 18633.5, and Article 3
(commencing with Section 23771) of Chapter 4 of Part 11 and the
accompanying instructions for filing those returns in a form and
manner approved by the State Board of Equalization, to enable a
person to report and pay qualified use tax in accordance with the
provisions of Section 6452.1.
(2) Within 10 working days of receiving from the Franchise Tax
Board the returns and instructions described in paragraph (1), the
State Board of Equalization shall do either of the following:
(A) Approve the form and manner of the returns and instructions
and notify the Franchise Tax Board of this approval.
(B) Submit comments to the Franchise Tax Board regarding changes
to the returns and instructions that shall be incorporated before the
State Board of Equalization approves the form and manner of the
returns and instructions.
(b) Any payments and credits shown on the return, together with
any other credits associated with that person's account, of a person
that reports qualified use tax on an acceptable tax return shall be
applied in the following order:
(1) Taxes imposed under Part 10 (commencing with Section 17001) or
Part 11 (commencing with Section 23001), including penalties and
interest, if any, imposed under this part.
(2) Qualified use tax as reported on the acceptable tax return, in
accordance with Section 6452.1.
(c) The Franchise Tax Board shall transfer the qualified use tax
received pursuant to Section 6452.1, and any information the State
Board of Equalization deems necessary for its administration of the
use tax, to the State Board of Equalization within 60 days from the
date the use tax is received or the acceptable tax return is
processed, whichever is later.
(d) This section shall be operative for returns filed for taxable
years beginning on or after January 1, 2010.
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