Amended in Assembly January 29, 2014

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 6018.2begin delete ofend deletebegin insert toend insert 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 thebegin delete Stateend delete 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 Billbegin delete 805end deletebegin insert 809end insert of the 2009-10 Regular Session), which
5became operative on April 1, 2010, there was considerable
6uncertainty among honorably discharged veterans with respect to
7their responsibilities under California’s Sales and Use Tax Law.
8These veterans relied upon Section 16102 of the Business and
9Professionsbegin delete Code thatend deletebegin insert Code, whichend insert exempts honorably discharged
10veterans from payment of any license, tax or fee, whatsoever, for
11their sales of goods, wares, or merchandise owned by them (except
12alcoholic beverages), and as a result, failed to pay sales tax or to
13collect sales tax 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 forbegin delete $100end deletebegin insert one hundred dollars
P3    1($100)end insert
or less, excluding alcoholic beverages, it is the intent of
2the Legislature that the sales tax, interest, and any penalties paid
3by these veterans on those sales during the period on and after
4April 1, 2002, and before April 1, 2010, for which there was no
5sales tax reimbursement collected from customers, be repaid in
6accordance with the provisions of this act.

7

SEC. 2.  

Section 6018.2 is added to the Revenue and Taxation
8Code
, to read:

9

6018.2.  

(a) A qualified veteran may receive from the statebegin delete, aend delete
10begin insert aend insert qualified repayment if all provisions of this section are satisfied.

11(b) The procedures set forth in this section shall be the procedure
12and remedy for the claims for a repayment of taxes, interest, or
13penalties paid by a qualified veteran under the Sales and Use Tax
14Law (Part 1 (commencing with Section 6001)), Section 35 of
15Article XIII of the California Constitution, local sales tax imposed
16in accordance with the Bradley-Burns Uniform Local Sales and
17Use Tax Law (Part 1.5 (commencing with Section 7200)), and
18local transactions and use taxes imposed in accordance with the
19Transactions and Use Tax Law (Part 1.6 (commencing with Section
207251)) during the eight-year period beginning on and after April
211, 2002, and before April 1, 2010.

22(c) (1) For purposes of this section, a “qualified veteran” means
23a person who meets all of the following requirements:

24(A) The person met the requirements of a qualified itinerant
25vendor as set forth in Section 6018.3 during the period in which
26the sales were made.

27(B) The person paid to the board taxes imposed under the Sales
28and Use Tax Law (Part 1 (commencing with Section 6001)),
29Section 35 of Article XIII of the California Constitution, taxes
30imposed in accordance with the Bradley-Burns Uniform Local
31Sales and Use Tax Law (Part 1.5 (commencing with Section
32 7200)), and transactions and use taxes imposed in accordance with
33the Transactions and Use Tax Law (Part 1.6 (commencing with
34Section 7251)) during the period beginning April 1, 2002, and
35before April 1, 2010, for which no sales tax reimbursement was
36collected from customers, and also paid any interest or penalties
37associated with those tax liabilities.

38(2) “Qualified repayment” means an amount equal to the amount
39described in subparagraph (B) of paragraph (1), less anybegin delete amount
40previously refunded to a qualified veteran through administrative
P4    1refund actions, including administrative settlement, and any
2amounts received in judgment or settlement of refund through a
3court of competent jurisdictionend delete
begin insert amounts previously refunded,
4credited, or paid to a qualified veteran through any means
5whatsoeverend insert
.

6(d) (1) Before January 1, 2016, a qualified veteran may file a
7claim for a qualified repayment with the board.

8(2) The claim shall be in writing, and shall be completed in
9accordance with any instructions or regulations as the board may
10prescribe, including, but not limited to, proof of payment of the
11tax, interest, or penalties described in subparagraph (B) of
12paragraph (1) of subdivision (c).

13(3) On or before March 1, 2016, the board shall certify to the
14Controller the amount of qualified repayments to be made to each
15qualified veteran pursuant to this section. The total amount of
16money available to make qualifiedbegin delete repaymentend deletebegin insert repaymentsend insert shall
17not exceed fifty thousand dollars ($50,000). If the total amount of
18claims filedbegin delete exceedend deletebegin insert exceedsend insert fifty thousand dollars ($50,000), the
19board shall determine the pro rata share due to each qualified
20veteran based on the proportion each claim bears to the total
21amount of claims and shall report that amount for certification.

22(4) Upon appropriation by the Legislature, the Controller shall
23make the payments of qualified repayments to qualified veterans.

24(5) No interest shall be paid on any qualified repayment made
25pursuant to this section.

26

SEC. 3.  

The Legislature finds and declares that the addition of
27Section 6018.2 of the Revenue and Taxation Code by this act
28serves a public purpose, as described in Section 1 of this act, and
29does not constitute a gift of public funds within the meaning of
30Section 6 of Article XVI of the California Constitution.



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