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 for 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.
This bill would, for purposes of the above provisions, exclude from the definition of “retailer” a retailer who hasbegin delete totalend deletebegin insert
de minimisend insert sales of qualified lumber products and engineered wood products of less than $25,000 during the previous calendar year. The bill would require an excluded retailer to provide a notice to the purchaser of the purchaser’s obligation to remit the assessment to the State Board of Equalization.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 4629.5 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
2amended to read:end insert
(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 reimbursement pursuant to Sections
122000 and 2001 of Title 18 of the California Code of
Regulations,
13as approved by the State Board of Equalization at its September
1410, 2013, meeting, for startup 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.
17(b) The retailer shall separately state the amount of the
18assessment imposed under this section on the sales receipt given
19by the retailer to the person at the time of sale.
20(c) The State Board of Equalization shall administer and collect
21the assessment imposed by this section pursuant to the Fee
22Collection Procedures Law (Part 30 (commencing with Section
2355001) of Division 2 of the Revenue and Taxation Code) with
24those changes as may be necessary to conform to this article. For
25purposes of this section, the references in the Fee Collection
26Procedures Law to “fee” shall include the assessment imposed by
27thisbegin delete sectionend deletebegin insert
section, and references to “feepayer” shall include a
28person required to pay the assessment imposed by this article,
29which includes the retailerend insert.
30(d) (1) The assessment is required to be collected by a retailer
31and 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) A person who purchases a lumber product or an engineered
36wood product for storage, use, or other consumption in this state
37is liable for the assessment until it has been paid to this state, except
38that payment to a retailer relieves the person from further liability
P3 1for the assessment. Any assessment collected from a person that
2has not been remitted to the
State Board of Equalization shall be
3a debt owed to the state by the retailer required to collect and remit
4the assessment. This part does not impose any obligation upon a
5retailer to take any legal action to enforce the collection of the
6assessment imposed by this section.
7(3) An excluded retailer, as described in subparagraph (B) of
8paragraph (2) of subdivision (g), shall provide a notice to a
9purchaser of qualified lumber products or engineered wood
10products regarding the purchaser’s obligation to remit the
11assessment to the State Board of Equalization. Section 4601 does
12not apply to this paragraph.
13(e) Except as provided in paragraph (3) of subdivision (a), the
14State Board of Equalization may prescribe, adopt, and enforce
15regulations relating to the administration and
enforcement of this
16section, including, but not limited to, collections, reporting, refunds,
17and appeals.
18(f) (1) The assessment imposed by this section is due and
19payable to the State Board of Equalization quarterly on or before
20the last day of the month next succeeding each quarterly period.
21(2) On or before the last day of the month following each
22quarterly period, a return for the preceding quarterly period shall
23be filed with the State Board of Equalization using electronic
24media, in the form prescribed by the State Board of Equalization.
25Returns shall be authenticated in a form or pursuant to methods,
26as prescribed by the State Board of Equalization.
27(g) For purposes of this section, all of the following shall apply:
28(1) “Purchase” has the same meaning as that term is defined in
29Section 6010 of the Revenue and Taxation Code.
30(2) begin insert(A)end insertbegin insert end insert “Retailer” has the same meaning as that term is defined
31in Section 6015 of the Revenue and Taxation Code.
32(B) A retailer with de minimis sales of qualified lumber products
33and engineered wood products of less than twenty-five thousand
34dollars ($25,000) during the previous calendar year is not a
35retailer for purposes of this section, except as provided in
36paragraph (3) of subdivision (d).
37(3) “Sales price” has the same meaning as that term is defined
38in Section 6011 of the Revenue and Taxation Code.
39(4) “Storage” has the same meaning as that term is defined in
40Section 6008 of the Revenue and Taxation Code.
P4 1(5) “Use” has the same meaning as that term is defined in
2Section 6009 of the Revenue and Taxation Code.
3(h) (1) A person required to pay the assessment imposed under
4this article shall register with the State Board of Equalization.
5Every application for registration shall be made in a form
6prescribed by the State Board of Equalization and shall set forth
7the name under which the applicant transacts or intends to transact
8business, the location of the person’s place or places of business,
9and any other information that
the State Board of Equalization
10may require. An application for registration shall be authenticated
11in a form or pursuant to methods as may be prescribed by the State
12Board of Equalization.
13(2) An application for registration filed pursuant to this section
14may be filed using electronic media as prescribed by the State
15Board of Equalization.
16(3) Electronic media includes, but is not limited to, computer
17modem, magnetic media, optical disc, facsimile machine, or
18telephone.
Section 4629.5 of the Public Resources Code is
20amended to read:
(a) (1) There is hereby imposed an assessment on a
22person who purchases a lumber product or an engineered wood
23product for storage, use, or other consumption in this state, at the
24rate of 1 percent of the sales price.
25(2) A retailer shall charge the person the amount of the
26assessment as a charge that is separate from, and not included in,
27any other fee, charge, or other amount paid by the purchaser.
28(3) The retailer shall collect the assessment from the person at
29the time of sale, and may retain an amount equal to the amount of
30reimbursement, as determined by the State Board of Equalization
31pursuant to
regulations, for any costs associated with the collection
32of the assessment, to be taken on the first return or next consecutive
33returns until the entire reimbursement amount is retained. For
34purposes of this paragraph, the State Board of Equalization may
35adopt emergency regulations pursuant to Section 11346.1 of the
36Government Code. The adoption of any regulation pursuant to this
37paragraph shall be deemed to be an emergency and necessary for
38the immediate preservation of the public peace, health, and safety,
39and general welfare.
P5 1(b) The retailer shall separately state the amount of the
2assessment imposed under this section on the sales receipt given
3by the retailer to the person at the time of sale.
4(c) The State Board of Equalization shall administer and collect
5the assessment
imposed by this section pursuant to the Fee
6Collection Procedures Law (Part 30 (commencing with Section
755001) of Division 2 of the Revenue and Taxation Code) with
8those changes as may be necessary to conform to this article. For
9purposes of this section, the references in the Fee Collection
10Procedures Law to “fee” shall include the assessment imposed by
11this section, and references to “feepayer” shall include a person
12required to pay the assessment imposed by the article, which
13includes the retailer.
14(d) (1) The assessment is required to be collected by a retailer
15
and any amount unreturned to the person who paid an amount in
16excess of the assessment, but was collected from the person under
17the representation by the retailer that it was owed as an assessment,
18constitutes debts owed by the retailer to this state.
19(2) A person who purchases a lumber product or an engineered
20wood product for storage, use, or other consumption in this state
21is liable for the assessment until it has been paid to this state, except
22that payment to a retailer relieves the person from further liability
23for the assessment. Any assessment collected from a person that
24has not been remitted to the State Board of Equalization shall be
25a debt owed to the state by the retailer required to collect and remit
26the assessment. This part does not impose any obligation upon a
27retailer to take any legal action to enforce the
collection of the
28assessment imposed by this section.
29(3) An excluded retailer, as described in subparagraph (B) of
30paragraph (2) of subdivision (g), shall provide a notice to a
31purchaser of qualified lumber products or engineered wood
32products regarding the purchaser’s obligation to remit the
33assessment to the State Board of Equalization. Section 4601 does
34not apply to this paragraph.
35(e) Except as provided in paragraph (3) of subdivision (a), the
36State Board of Equalization may prescribe, adopt, and enforce
37regulations relating to the administration and enforcement of this
38section, including, but not limited to, collections, reporting, refunds,
39and appeals.
P6 1(f) (1) The assessment imposed by this section is due and
2payable to the State Board of Equalization quarterly on or before
3the last day of the month next succeeding each quarterly period.
4(2) On or before the last day of the month following each
5quarterly period, a return for the preceding quarterly period shall
6be filed with the State Board of Equalization using electronic
7media, in the form prescribed by the State Board of Equalization.
8Returns shall be authenticated in a form or pursuant to methods,
9as prescribed by the State Board of Equalization.
10(g) For purposes of this section, all of the following shall apply:
11(1) “Purchase” has the same meaning as that term is defined in
12Section 6010 of
the Revenue and Taxation Code.
13(2) (A) “Retailer” means a retailer, as that term is defined in
14Section 6015 of the Revenue and Taxation Code.
15(B) A retailer with de minimis sales of qualified lumber products
16and engineered wood products of less than
twenty-five thousand
17dollars ($25,000) during the previous calendar year is not a retailer
18for purposes of this section, except as provided in paragraph (3)
19of subdivision (d).
20(3) “Sales price” has the same meaning as that term is defined
21in Section 6011 of the Revenue and Taxation Code.
22(4) “Storage”
has the same meaning as that term is defined in
23Section 6008 of the Revenue and Taxation Code.
24(5) “Use” has the same meaning as that term is defined in
25Section 6009 of the Revenue and Taxation Code.
26(h) (1) A person required to pay the assessment imposed under
27this article shall register with the State Board of Equalization.
28Every application for registration shall be made in a form
29prescribed by the State Board of Equalization and shall set forth
30the name under which the applicant transacts or intends to transact
31business, the location of the person’s place or places of business,
32and any other information that the State Board of Equalization
33may require. An application for registration shall be authenticated
34in a form or pursuant to methods as may be
prescribed by the State
35Board of Equalization.
36(2) An application for registration filed pursuant to this section
37may be filed using electronic media as prescribed by the State
38Board of Equalization.
P7 1(3) Electronic media includes, but is not limited to, computer
2modem, magnetic media, optical disc, facsimile machine, or
3telephone.
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