Amended in Senate May 23, 2014

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 6018.2 to 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 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 809 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, which exempts honorably discharged veterans from payment
10of any license, tax or feebegin delete, whatsoever,end deletebegin insert whatsoever,end insert for their sales
11of goods, wares, 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.

P3    1(c) For the public purpose of assuring equity in the payment of
2sales tax among qualified veterans for tangible personal property
3owned and sold by those veterans for one hundred dollars ($100)
4or less, excluding alcoholic beverages, it is the intent of the
5Legislature that the sales tax, interest, and any penalties paid by
6these veterans on those sales during the period on and after April
71, 2002, and before April 1, 2010, for which there was no sales
8tax reimbursement collected from customers, be repaid in
9accordance with the provisions of this act.

10

SEC. 2.  

Section 6018.2 is added to the Revenue and Taxation
11Code
, to read:

12

6018.2.  

(a) A qualified veteran may receive from the state a
13qualified repayment if all provisions of this section are satisfied.

14(b) The procedures set forth in this section shall be the procedure
15and remedy for the claims for a repayment of taxes, interest, or
16penalties paid by a qualified veteran under the Sales and Use Tax
17Law (Part 1 (commencing with Section 6001)), Section 35 of
18Article XIII of the California Constitution, local sales tax imposed
19in accordance with the Bradley-Burns Uniform Local Sales and
20Use Tax Law (Part 1.5 (commencing with Section 7200)), and
21local transactions and use taxes imposed in accordance with the
22Transactions and Use Tax Law (Part 1.6 (commencing with Section
237251)) during the eight-year period beginning on and after April
241, 2002, and before April 1, 2010.

25(c) (1) For purposes of this section, a “qualified veteran” means
26a person who meets all of the following requirements:

27(A) The person met the requirements of a qualified itinerant
28vendor as set forth in Section 6018.3 during the period in which
29the sales were made.

30(B) The person paid to the board taxes imposed under the Sales
31and Use Tax Law (Part 1 (commencing with Section 6001)),
32Section 35 of Article XIII of the California Constitution, taxes
33imposed in accordance with the Bradley-Burns Uniform Local
34Sales and Use Tax Law (Part 1.5 (commencing with Section
35 7200)), and transactions and use taxes imposed in accordance with
36the Transactions and Use Tax Law (Part 1.6 (commencing with
37Section 7251)) during the period beginning April 1, 2002, and
38before April 1, 2010, for which no sales tax reimbursement was
39collected from customers, and also paid any interest or penalties
40associated with those tax liabilities.

P4    1(2) “Qualified repayment” means an amount equal to the amount
2described in subparagraph (B) of paragraph (1), less any amounts
3previously refunded, credited, or paid to a qualified veteran through
4any means whatsoever.

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

7(2) The claim shall be in writing, and shall be completed in
8accordance with any instructions or regulations as the board may
9prescribe, including, but not limited to, proof of payment of the
10tax, interest, or penalties described in subparagraph (B) of
11paragraph (1) of subdivision (c).

12(3) On or before March 1, 2016, the board shall certify to the
13Controller the amount of qualified repayments to be made to each
14qualified veteran pursuant to this section. The total amount of
15money available to make qualified repayments shall not exceed
16fifty thousand dollars ($50,000). If the total amount of claims filed
17exceeds fifty thousand dollars ($50,000), the board shall determine
18the pro rata share due to each qualified veteran based on the
19proportion each claim bears to the total amount of claims and shall
20report that amount for certification.

21(4) Upon appropriation by the Legislature, the Controller shall
22make the payments of qualified repayments to qualified veterans.

23(5) No interest shall be paid on any qualified repayment made
24pursuant to this section.

25

SEC. 3.  

The Legislature finds and declares that the addition of
26Section 6018.2 of the Revenue and Taxation Code by this act
27serves a public purpose, as described in Section 1 of this act, and
28does not constitute a gift of public funds within the meaning of
29Section 6 of Article XVI of the California Constitution.



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