BILL NUMBER: AB 919	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 6, 2014

INTRODUCED BY   Assembly Member Williams

                        FEBRUARY 22, 2013

   An act to add Section 6018.2 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 919, as amended, Williams. Sales and use taxes: veterans:
itinerant vendors: repayment.
   Existing sales and use tax laws  imposes  
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, 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,   2016, 
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:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Prior to the enactment of Chapter 621 of the Statutes of 2009
(Senate Bill 805 of the 2009-10 Regular Session), which became
operative on April 1, 2010, there was considerable uncertainty among
honorably discharged veterans with respect to their responsibilities
under California's Sales and Use Tax Law. These veterans relied upon
Section 16102 of the Business and Professions Code that exempts
honorably discharged veterans from payment of  certain
license taxes and fees   any license, tax or fee,
whatsoever,  for their sales of goods, wares, or merchandise
owned by them (except alcoholic beverages), and as a result, failed
to pay sales tax or to collect sales tax reimbursement on their
retail sales.
   (b) This uncertainty resulted in deficiency assessments by the
State Board of Equalization against these veterans and subsequent
payments to the board by these veterans of the tax, interest, and
penalty for amounts that the board determined to be due.
   (c) For the public purpose of assuring equity in the payment of
sales tax among qualified veterans for tangible personal property
owned and sold by those veterans for $100 or less, excluding
alcoholic beverages, it is the intent of the Legislature that the
sales tax, interest, and any penalties paid by these veterans on
those sales  for   during  the period on
and after April 1, 2002, and before April 1, 2010, for which there
was no sales tax reimbursement collected from customers, be repaid in
accordance with the provisions of this act.
  SEC. 2.  Section 6018.2 is added to the Revenue and Taxation Code,
to read:
   6018.2.  (a) A qualified veteran may receive from the state, a
qualified repayment if all provisions of this section are satisfied.
   (b) The procedures set forth in this section shall be the 
exclusive  procedure and remedy for the claims 
for, or action for,   for  a repayment of taxes,
interest, or penalties paid by a qualified veteran under the Sales
and Use Tax Law (Part 1 (commencing with Section 6001)), Section 35
of Article XIII of the California Constitution, local sales tax
imposed in accordance with the Bradley-Burns Uniform Local Sales and
Use Tax Law (Part 1.5 (commencing with Section 7200)), and local
transactions and use taxes imposed in accordance with the
Transactions and Use Tax Law (Part 1.6 (commencing with Section
7251))  for   during  the  eight
year   eight-year  period beginning on and after
April 1, 2002, and before April 1, 2010.
   (c) (1) For purposes of this section, a "qualified veteran" means
a person who meets all of the following requirements:
   (A) The person met the requirements of a qualified itinerant
vendor as set forth in Section 6018.3  , on and after April
1, 2002 and before April 1, 2010   during the period in
which the sales were made  .
   (B) The person paid to the board taxes imposed under the Sales and
Use Tax Law (Part 1 (commencing with Section 6001)), Section 35 of
Article XIII of the California Constitution,  local sales tax
  taxes  imposed in accordance with the
Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5
(commencing with Section 7200)),  or local   and
 transactions and use taxes imposed in accordance with the
Transactions and Use Tax Law (Part 1.6 (commencing with Section
7251))  for   during  the period beginning
April 1, 2002, and before April 1, 2010, for which no sales tax
reimbursement was collected from customers, and also paid any
interest or penalties associated with those tax liabilities.
   (2) "Qualified repayment" means an amount equal to the amount
described in subparagraph (B) of paragraph (1).
   (d) (1) Before January 1,  2015,   2016,
 a qualified veteran may file a claim for a qualified repayment
with the board.
   (2) The claim shall be in writing, and shall be completed in
accordance with any instructions or regulations as the board may
prescribe, including, but not limited to, proof of payment of the
tax, interest, or penalties described in subparagraph (B) of
paragraph (1) of subdivision (c).
   (3) On or before March 1,  2015,   2016,
 the board shall certify to the Controller the amount of
qualified repayments to be made to each qualified veteran pursuant to
this section. The total amount of money available to make qualified
repayment shall not exceed fifty thousand dollars ($50,000). If the
total amount of claims filed exceed fifty thousand dollars ($50,000),
the board shall determine the pro rata share due to each qualified
veteran based on the proportion each claim bears to the total amount
of claims and shall report that amount for certification.
   (4) Upon appropriation by the Legislature, the Controller shall
make the payments of qualified repayments to qualified veterans.
   (5) No interest shall be paid on any qualified repayment made
pursuant to this section.
  SEC. 3.  The Legislature finds and declares that the addition of
Section 6018.2 of the Revenue and Taxation Code by this act serves a
public purpose, as described in Section 1 of this act, and does not
constitute a gift of public funds within the meaning of Section 6 of
Article XVI of the California Constitution.