AB 2031, as introduced, Dahle. Forest resources: timber assessment.
Existing law imposes an assessment on a person who purchases from a retailer a lumber product or an engineered wood product for the storage, use, or other consumption in this state, at the rate of 1% of the sales price. Existing law requires the retailer, as defined according to existing tax laws, to charge the person the amount of the assessment as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the purchaser. Existing law requires the retailer to collect the assessment from the person at the time of sale, as provided.
Under existing law, every retailer engaged in business in this state and making sales of tangible personal property for storage, use, or other consumption in this state is required to collect a “use tax,” is relieved from liability for this collection in cases in which certain accounts are found to be worthless and are charged off for income tax purposes, and is authorized to take certain income tax deductions if the surcharge has been previously paid. Existing law establishes similar procedures for an electric utility required to collect a surcharge imposed on the consumption in this state of electrical energy purchased from the electric utility.
This bill would establish a similar procedure that would relieve a retailer from liability to collect the assessment on the purchase of lumber and wood products insofar as the measure of the assessment is represented by a retail account that has been found to be worthless and charged off for income tax purposes by the retailer or, if the retailer is not required to file income tax returns, charged off in accordance with generally accepted accounting principles. The bill would authorize the retailer that has previously paid the assessment, under rules and regulations adopted by the State Board of Equalization, to take as a deduction on its income tax returns the amount found worthless and charged off by the retailer, but would require the payment of the assessment to the extent the retail account is thereafter collected.
This bill would, for purposes of all of the above provisions, define “retailer” as one who has total sales of qualified lumber products and engineered wood products of $25,000 or more during the previous calendar year.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 4629.5 of the Public Resources Code is
2amended to read:
(a) (1) begin deleteOn and after January 1, 2013, there end deletebegin insertThere end insertis
4hereby imposed an assessment on a person who purchases a lumber
5product or an engineered wood product for the storage, use, or
6other consumption in this state, at the rate of 1 percent of the sales
7price.
8(2) A retailer shall charge the person the amount of the
9assessment as a charge that is separate from, and not included in,
10any other fee, charge, or other amount paid by the purchaser.
11(3) The retailer shall collect the assessment from
the person at
12the time of sale, and may retain an amount equal to the amount of
13reimbursement, as determined by the State Board of Equalization
14pursuant to regulations, for any costs associated with the collection
15of the assessment, to be taken on the first return or next consecutive
16returns until the entire reimbursement amount is retained. For
17purposes of this paragraph, the State Board of Equalization may
18adopt emergency regulations pursuant to Section 11346.1 of the
19Government Code. The adoption of any regulation pursuant to this
20paragraph shall be deemed to be an emergency and necessary for
P3 1the immediate preservation of the public peace, health, and safety,
2and general welfare.
3(b) The retailer shall separately state the amount of the
4assessment imposed under this section on the sales receipt given
5by the retailer to the person at the time of sale.
6(c) begin insert(1)end insertbegin insert end insert The State Board of Equalization shall administer and
7collect the assessment imposed by this section pursuant to the Fee
8Collection Procedures Law (Part 30 (commencing with Section
955001) of Division 2 of the Revenue and Taxation Code) with
10those changes as may be necessary to conform tobegin delete the provisions this article. For purposes of this section, the references in the
11ofend delete
12Fee Collection Procedures Law to “fee” shall include the
13assessment imposed by this sectionbegin insert, and references to “feepayer”
14shall include a person required to pay the assessment imposed by
15the article, which includes the retailerend insert.
16(2) A retailer is relieved from
liability to collect the assessment
17imposed by this section that became due and payable, insofar as
18the base upon which the assessment is imposed is represented by
19accounts that have been found to be worthless and charged off for
20income tax purposes by the retailer or, if the retailer is not required
21to file income tax returns, charged off in accordance with generally
22accepted accounting principles. A retailer that has previously paid
23the assessment may, under rules and regulations prescribed the
24State Board of Equalization, take as a deduction on its return the
25amount found worthless and charged off by the retailer. If the
26retail account is thereafter, in whole or in part, collected by the
27retailer, the amount collected shall be included in the first return
28filed after the collection and the assessment shall be paid with the
29return.
30(d) (1) The assessment is required to be collected by a retailer
31
and any amount unreturned to the person who paid an amount in
32excess of the assessment, but was collected from the person under
33the representation by the retailer that it was owed as an assessment,
34constitutes debts owed by the retailer to this state.
35(2) begin deleteEvery end deletebegin insertA end insertperson who purchases a lumber product or an
36engineered wood product for storage, use, or other consumption
37in this state is liable for the assessment until it has been paid to
38this state, except that payment to a retailer relieves the person from
39further liability for the assessment. Any assessment collected from
40a person that has not been remitted to the State Board of
P4 1Equalization shall be a debt owed to the state by the retailer
2required to collect and remit the assessment.begin delete Nothing in this part begin insert
This part does notend insert impose any obligation upon a retailer to
3shallend delete
4take any legal action to enforce the collection of the assessment
5imposed by this section.
6(e) Except as provided in paragraph (3) of subdivision (a), the
7State Board of Equalization may prescribe, adopt, and enforce
8regulations relating to the administration and enforcement of this
9section, including, but not limited to, collections, reporting, refunds,
10and appeals.
11(f) (1) The assessment imposed by this section is due and
12payable to the State Board of Equalization quarterly on or before
13the last day of the month next succeeding each quarterly period.
14(2) On or before the last day of the month following each
15quarterly period, a return for the preceding quarterly period shall
16be filed with the
State Board of Equalization using electronic
17media, in the form prescribed by the State Board of Equalization.
18Returns shall be authenticated in a form or pursuant to methods,
19as prescribed by the State Board of Equalization.
20(g) For purposes of this section, all of the following shall apply:
21(1) “Purchase” has the same meaning as that term is defined in
22Section 6010 of the Revenue and Taxation Code.
23(2) “Retailer”begin delete has the same meaningend deletebegin insert means a retailer,end insert as that
24term is defined in Section 6015 of the Revenue and Taxation Codebegin insert,
25who hasend insertbegin insert
total sales of qualified lumber products and engineered
26wood products of twenty-five thousand dollars ($25,000) or more
27during the previous calendar yearend insert.
28(3) “Sales price” has the same meaning as that term is defined
29in Section 6011 of the Revenue and Taxation Code.
30(4) “Storage” has the same meaning as that term is defined in
31Section 6008 of the Revenue and Taxation Code.
32(5) “Use” has the same meaning as that term is defined in
33Section 6009 of the Revenue and Taxation Code.
34(h) (1) begin deleteEvery end deletebegin insertA end insertperson required to pay the
assessment imposed
35under this article shall register with the State Board of Equalization.
36Every application for registration shall be made in a form
37prescribed by the State Board of Equalization and shall set forth
38the name under which the applicant transacts or intends to transact
39business, the location ofbegin delete his or herend deletebegin insert the person’send insert place or places of
40business, andbegin delete suchend deletebegin insert
anyend insert other informationbegin delete asend deletebegin insert thatend insert the State Board
P5 1of Equalization may require. An application for registration shall
2be authenticated in a form or pursuant to methods as may be
3prescribed by the State Board of Equalization.
4(2) An application for registration filed pursuant to this section
5may be filed using electronic media as prescribed by the State
6Board of Equalization.
7(3) Electronic media includes, but is not limited to, computer
8modem, magnetic media, optical disc, facsimile machine, or
9telephone.
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