Amended in Assembly January 17, 2014

Amended in Assembly January 6, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 919


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 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, 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, 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:

P2    1

SECTION 1.  

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 any license, tax or fee, whatsoever, for their sales of goods,
11wares, or merchandise owned by them (except alcoholic
12beverages), and as a result, failed to pay sales tax or to collect sales
13tax reimbursement on 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
P3    1tax, interest, and any penalties paid by these veterans on those
2sales during the period on and after April 1, 2002, and before April
31, 2010, for which there was no sales tax reimbursement collected
4 from customers, be repaid in accordance with the provisions of
5this act.

6

SEC. 2.  

Section 6018.2 is added to the Revenue and Taxation
7Code
, to read:

8

6018.2.  

(a) A qualified veteran may receive from the state, a
9qualified repayment if all provisions of this section are satisfied.

10(b) The procedures set forth in this section shall be the procedure
11and remedy for the claims for a repayment of taxes, interest, or
12penalties paid by a qualified veteran under the Sales and Use Tax
13Law (Part 1 (commencing with Section 6001)), Section 35 of
14Article XIII of the California Constitution, local sales tax imposed
15in accordance with the Bradley-Burns Uniform Local Sales and
16Use Tax Law (Part 1.5 (commencing with Section 7200)), and
17local transactions and use taxes imposed in accordance with the
18Transactions and Use Tax Law (Part 1.6 (commencing with Section
197251)) during the eight-year period beginning on and after April
201, 2002, and before April 1, 2010.

21(c) (1) For purposes of this section, a “qualified veteran” means
22a person who meets all of the following requirements:

23(A) The person met the requirements of a qualified itinerant
24vendor as set forth in Section 6018.3 during the period in which
25the sales were made.

26(B) The person paid to the board taxes imposed under the Sales
27and Use Tax Law (Part 1 (commencing with Section 6001)),
28Section 35 of Article XIII of the California Constitution, taxes
29imposed in accordance with the Bradley-Burns Uniform Local
30Sales and Use Tax Law (Part 1.5 (commencing with Section
31 7200)), and transactions and use taxes imposed in accordance with
32the Transactions and Use Tax Law (Part 1.6 (commencing with
33Section 7251)) during the period beginning April 1, 2002, and
34before April 1, 2010, for which no sales tax reimbursement was
35collected from customers, and also paid any interest or penalties
36associated with those tax liabilities.

37(2) “Qualified repayment” means an amount equal to the amount
38described in subparagraph (B) of paragraph (1)begin insert, less any amount
39previously refunded to a qualified veteran through administrative
40refund actions, including administrative settlement, and any
P4    1amounts received in judgment or settlement of refund through a
2court of competent jurisdictionend insert
.

3(d) (1) Before January 1, 2016, a qualified veteran may file a
4claim for a qualified repayment with the board.

5(2) The claim shall be in writing, and shall be completed in
6accordance with any instructions or regulations as the board may
7prescribe, including, but not limited to, proof of payment of the
8tax, interest, or penalties described in subparagraph (B) of
9paragraph (1) of subdivision (c).

10(3) On or before March 1, 2016, the board shall certify to the
11Controller the amount of qualified repayments to be made to each
12qualified veteran pursuant to this section. The total amount of
13money available to make qualified repayment shall not exceed
14fifty thousand dollars ($50,000). If the total amount of claims filed
15exceed fifty thousand dollars ($50,000), the board shall determine
16the pro rata share due to each qualified veteran based on the
17proportion each claim bears to the total amount of claims and shall
18report that amount for certification.

19(4) Upon appropriation by the Legislature, the Controller shall
20make the payments of qualified repayments to qualified veterans.

21(5) No interest shall be paid on any qualified repayment made
22pursuant to this section.

23

SEC. 3.  

The Legislature finds and declares that the addition of
24Section 6018.2 of the Revenue and Taxation Code by this act
25serves a public purpose, as described in Section 1 of this act, and
26does not constitute a gift of public funds within the meaning of
27Section 6 of Article XVI of the California Constitution.



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