AB 1412, as introduced, Committee on Revenue and Taxation. Sales and use taxes: claim for refund: customer refunds.
Under the Sales and Use Tax Law, any amount collected or paid in excess of what is due under that law is required to be credited by the State Board of Equalization against any other amounts due and payable from the person from whom the excess amount was collected or by whom it was paid, and the balance refunded to the person, as provided. Under existing law, when an amount represented by a person to a customer as constituting reimbursement for taxes due under the Sales and Use Tax Law is computed upon an amount that is not taxable or is in excess of the taxable amount and is actually paid by the customer to the person, the amount paid is required to be returned by the person to the customer upon notification by the board or by the customer that this excess has been ascertained.
This bill would authorize a person to make an irrevocable election to assign to the customer the right to receive the amount that would be refunded to the person, provided specified conditions are met, and would authorize the board to make that payment to the customer.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 6901 of the Revenue and Taxation Code
2 is amended to read:
begin insert(a)end insertbegin insert end insert If the board determines that any amount, penalty,
4or interest has been paid more than once or has been erroneously
5or illegally collected or computed, the board shall set forth that
6fact in the records of the board and shall certify the amount
7collected in excess of the amount legally due and the person from
8whom it was collected or by whom paid. The excess amount
9collected or paid shall be credited by the board on any amounts
10then due and payable from the person from whom the excess
11amount was collected or by whom it was paid under this part, and
12the balance shall be
refunded to the person, or his or her successors,
13administrators, or executors,begin insert or customer as provided in subdivision
14(b),end insert if a determination by the board is made in any of the following
15cases:
16(a)
end delete
17begin insert(1)end insert Any amount of tax, interest, or penalty was not required to
18be paid.
19(b)
end delete
20begin insert(2)end insert Any amount of prepayment of sales tax, interest, or penalty
21paid pursuant to Article 1.5 (commencing with Section 6480) of
22Chapter 5 was not required to be paid.
23(c)
end delete
24begin insert(3)end insert Any amount that is approved as a settlement pursuant to
25Section 7093.5.
26(b) A person may make an irrevocable election to assign to the
27customer the right to receive the amount refunded if all of the
28following conditions are met:
29(1) The amount represents excess tax reimbursement
that is
30required to be paid by the person to the customer under Section
316901.5.
32(2) The irrevocable election to assign to the customer the amount
33refunded is evidenced by a statement signed by the person and the
34customer authorizing the named customer to receive the amount
35refunded.
36(3) The signed statement is submitted to the board in conjunction
37with the person’s claim for refund.
38Any
end delete
P3 1begin insert(c)end insertbegin insert end insertbegin insertAnyend insert
overpayment of the use tax by a purchaser to a retailer
2who is required to collect the tax and who gives the purchaser a
3receipt therefor pursuant to Article 1 (commencing with Section
46201) of Chapter 3 shall be credited or refunded by the state to the
5purchaser.begin delete Anyend delete
6begin insert(d)end insertbegin insert end insertbegin insertAny end insertproposed determination by the board pursuant to this
7section with respect to an amount in excess of fifty thousand dollars
8($50,000) shall be available as a public record for at least 10 days
9prior to the effective date of that determination.
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