AB 919, as introduced, Williams. Sales and use taxes: veterans: itinerant vendors: repayment.
Existing sales and use tax laws 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, measured by sales price. That law, with certain exceptions, defines a retailer as a seller who makes any retail sale of tangible personal property and as a person who makes more than 2 retail sales of tangible personal property during any 12-month period, and defines a retail sale as a sale of tangible personal property for any purpose other than resale in the regular course of business.
Existing law, from April 1, 2010, to January 1, 2022, provides that a qualified itinerant vendor, as defined, is a consumer, and not a retailer, of tangible personal property owned and sold by the qualified itinerant vendor, except for alcoholic beverages or items sold for more than $100, so that the retail sale subject to tax is the sale of tangible personal property to the qualified itinerant vendor and not the sale by the qualified itinerant vendor.
This bill would provide a procedure for a qualified veteran, who is a person who met specified requirements for being a qualified itinerant vendor between April 1, 2002, and April 1, 2010, to submit a claim for qualified repayments, as defined, with the State Board of Equalization, as provided. This bill would, on or before March 1, 2015, require the board to certify to the Controller the amount of qualified repayments to be made to each qualified veteran, and would require the State Controller, upon appropriation by the Legislature, to make the payments of qualified repayments. This bill would limit the total amount of money available to make qualified repayments to not more than $50,000.
This bill would make findings regarding the public purpose served by the bill.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares all of the
2following:
3(a) Prior to the enactment of Chapter 621 of the Statutes of 2009
4(Senate Bill 805 of the 2009-10 Regular Session), which became
5operative on April 1, 2010, there was considerable uncertainty
6among honorably discharged veterans with respect to their
7responsibilities under California’s Sales and Use Tax Law. These
8veterans relied upon Section 16102 of the Business and Professions
9Code that exempts honorably discharged veterans from payment
10of certain license taxes and fees for their sales of goods, wares, or
11merchandise owned by them (except alcoholic beverages), and as
12a result, failed to pay sales tax or to collect sales tax reimbursement
13on their retail sales.
14(b) This uncertainty resulted in deficiency assessments by the
15State Board of Equalization against these veterans and subsequent
16payments to the board by these veterans of the tax, interest, and
17penalty for amounts that the board determined to be due.
18(c) For the public purpose of assuring equity in the payment of
19sales tax among qualified veterans for tangible personal property
20owned and sold by those veterans for $100 or less, excluding
21alcoholic beverages, it is the intent of the Legislature that the sales
22tax, interest, and any penalties paid by these veterans on those
23sales for the period on and after April 1, 2002, and before April
P3 11, 2010, for which there was no sales tax reimbursement collected
2from customers, be repaid in accordance with the provisions of
3this act.
Section 6018.2 is added to the Revenue and Taxation
5Code, to read:
(a) A qualified veteran may receive from the state, a
7qualified repayment if all provisions of this section are satisfied.
8(b) The procedures set forth in this section shall be the exclusive
9procedure and remedy for the claims for, or action for, a repayment
10of taxes, interest, or penalties paid by a qualified veteran under
11the Sales and Use Tax Law (Part 1 (commencing with Section
126001)), Section 35 of Article XIII of the California Constitution,
13local sales tax imposed in accordance with the Bradley-Burns
14Uniform Local Sales and Use Tax Law (Part 1.5 (commencing
15with Section 7200)), and local transactions and use taxes imposed
16in accordance with the Transactions and Use Tax Law (Part 1.6
17(commencing with Section 7251)) for the eight year
period
18beginning on and after April 1, 2002, and before April 1, 2010.
19(c) (1) For purposes of this section, a “qualified veteran” means
20a person who meets all of the following requirements:
21(A) The person met the requirements of a qualified itinerant
22vendor as set forth in Section 6018.3, on and after April 1, 2002
23and before April 1, 2010.
24(B) The person paid to the board taxes imposed under the Sales
25and Use Tax Law (Part 1 (commencing with Section 6001)),
26Section 35 of Article XIII of the California Constitution, local
27sales tax imposed in accordance with the Bradley-Burns Uniform
28Local Sales and Use Tax Law (Part 1.5 (commencing with Section
297200)), or local transactions and use taxes imposed in accordance
30with the Transactions and Use Tax Law (Part 1.6 (commencing
31with Section 7251)) for
the period beginning April 1, 2002, and
32before April 1, 2010, for which no sales tax reimbursement was
33collected from customers, and also paid any interest or penalties
34associated with those tax liabilities.
35(2) “Qualified repayment” means an amount equal to the amount
36described in subparagraph (B) of paragraph (1).
37(d) (1) Before January 1, 2015, a qualified veteran may file a
38claim for a qualified repayment with the board.
39(2) The claim shall be in writing, and shall be completed in
40accordance with any instructions or regulations as the board may
P4 1prescribe, including, but not limited to, proof of payment of the
2tax, interest, or penalties described in subparagraph (B) of
3paragraph (1) of subdivision (c).
4(3) On or before March 1,
2015, the board shall certify to the
5Controller the amount of qualified repayments to be made to each
6qualified veteran pursuant to this section. The total amount of
7money available to make qualified repayment shall not exceed
8fifty thousand dollars ($50,000). If the total amount of claims filed
9exceed fifty thousand dollars ($50,000), the board shall determine
10the pro rata share due to each qualified veteran based on the
11proportion each claim bears to the total amount of claims and shall
12report that amount for certification.
13(4) Upon appropriation by the Legislature, the Controller shall
14make the payments of qualified repayments to qualified veterans.
15(5) No interest shall be paid on any qualified repayment made
16pursuant to this section.
The Legislature finds and declares that the addition of
18Section 6018.2 of the Revenue and Taxation Code by this act
19serves a public purpose, as described in Section 1 of this act, and
20does not constitute a gift of public funds within the meaning of
21Section 6 of Article XVI of the California Constitution.
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