Amended in Assembly April 21, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2031


Introduced by Assembly Member Dahle

February 20, 2014


An act to amend Section 4629.5 of the Public Resources Code, relating to forest resources.

LEGISLATIVE COUNSEL’S DIGEST

AB 2031, as amended, 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 forbegin delete theend delete 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.

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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.

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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.

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This bill would, for purposes ofbegin delete all ofend delete the above provisions,begin delete defineend deletebegin insert exclude from the definition ofend insert “retailer”begin delete as oneend deletebegin insert a retailerend insert who has total sales of qualified lumber products and engineered wood products ofbegin delete $25,000 or moreend deletebegin insert less than $5,000end insert 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:

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SECTION 1.  

Section 4629.5 of the Public Resources Code is
2amended to read:

3

4629.5.  

(a) (1) There is hereby imposed an assessment on a
4person who purchases a lumber product or an engineered wood
5product forbegin delete theend delete storage, use, or other consumption in this state, at
6the rate of 1 percent of the sales price.

7(2) A retailer shall charge the person the amount of the
8assessment as a charge that is separate from, and not included in,
9any other fee, charge, or other amount paid by the purchaser.

10(3) The retailer shall collect the assessment from the person at
11the time of sale, and may retain an amount equal to the amount of
12reimbursement, as determined by the State Board of Equalization
13pursuant to regulations, for any costs associated with the collection
14of the assessment, to be taken on the first return or next consecutive
15returns until the entire reimbursement amount is retained. For
16purposes of this paragraph, the State Board of Equalization may
17adopt emergency regulations pursuant to Section 11346.1 of the
18Government Code. The adoption of any regulation pursuant to this
19paragraph 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 delete(1)end deletebegin deleteend deleteThe 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 to this article. For
11purposes of this section, the references in the Fee Collection
12Procedures Law to “fee” shall include the assessment imposed by
13this section, and references to “feepayer” shall include a person
14required to pay the assessment imposed by the article, which
15includes the retailer.

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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 retail
26account is thereafter, in whole or in part, collected by the retailer,
27the amount collected shall be included in the first return filed after
28the collection and the assessment shall be paid with the return.

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29(d) (1) The assessment is required to be collected by a retailer
30 and any amount unreturned to the person who paid an amount in
31excess of the assessment, but was collected from the person under
32the representation by the retailer that it was owed as an assessment,
33constitutes debts owed by the retailer to this state.

34(2) A person who purchases a lumber product or an engineered
35wood product for storage, use, or other consumption in this state
36is liable for the assessment until it has been paid to this state, except
37that payment to a retailer relieves the person from further liability
38for the assessment. Any assessment collected from a person that
39has not been remitted to the State Board of Equalization shall be
40a debt owed to the state by the retailer required to collect and remit
P4    1the assessment. This part does not impose any obligation upon a
2retailer to take any legal action to enforce the collection of the
3assessment imposed by this section.

4(e) Except as provided in paragraph (3) of subdivision (a), the
5State Board of Equalization may prescribe, adopt, and enforce
6regulations relating to the administration and enforcement of this
7section, including, but not limited to, collections, reporting, refunds,
8and appeals.

9(f) (1) The assessment imposed by this section is due and
10payable to the State Board of Equalization quarterly on or before
11the last day of the month next succeeding each quarterly period.

12(2) On or before the last day of the month following each
13quarterly period, a return for the preceding quarterly period shall
14be filed with the State Board of Equalization using electronic
15media, in the form prescribed by the State Board of Equalization.
16Returns shall be authenticated in a form or pursuant to methods,
17as prescribed by the State Board of Equalization.

18(g) For purposes of this section, all of the following shall apply:

19(1) “Purchase” has the same meaning as that term is defined in
20Section 6010 of the Revenue and Taxation Code.

21(2) “Retailer” means a retailer, as that term is defined in Section
226015 of the Revenue and Taxation begin delete Code, who has totalend delete begin insert Code. A
23retailer with de minimisend insert
sales of qualified lumber products and
24engineered wood products ofbegin delete twenty-five thousand dollars
25($25,000) or moreend delete
begin insert less than five thousand dollars ($5,000)end insert during
26the previous calendar yearbegin insert are not retailers for purposes of this
27sectionend 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) A person required to pay the assessment imposed under
35this 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 of the person’s place or places of business,
40and any other information that the State Board of Equalization
P5    1may require. An application for registration shall be authenticated
2in a form or pursuant to methods as may be prescribed by the State
3Board 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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