AB 18, as introduced, Bonilla. Taxation: distilled spirits: Cocktails for Healthy Outcomes Act.
(1) The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges.
This bill, on and after January 1, 2016, would impose a surtax on every individual for each purchase of a cocktail from an on-sale licensee for consumption or other use on the licensed, in-state premises of that on-sale licensee at the rate of $0.05 per cocktail, as defined. This bill would require the surtax rate to be adjusted annually, as specified. This bill would require an on-sale licensee to separately state and collect the surtax from an individual, as specified.
This bill would require the State Board of Equalization to administer and collect the surtax in accordance with the Fee Collection Procedures Law. By expanding the application of the Fee Collection Procedures Law, the violation of which is a crime, this bill would impose a state-mandated local program. The bill would require an on-sale licensee to register with the board, to prepare and file with the board returns using electronic media in the form prescribed by the board, containing specified information, and to remit the fee quarterly. The bill would require that all revenues, less refunds, be remitted to the State Board of Equalization and deposited in the Healthy California Special Fund for the funding of, among other things, developmental disability services, upon appropriation by the Legislature.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(2) The Sales and Use Tax Law imposes 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 of tangible personal property purchased from a retailer for the storage, use, or other consumption in this state measured by sales price. That law defines the terms “gross receipts” and “sales price.”
This bill would exclude from “gross receipts” subject to tax the amount of surtax imposed by this bill.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing law authorizes districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which conforms to the Sales and Use Tax Law. Amendments to state sales and use taxes are incorporated into these laws.
Section 2230 of the Revenue and Taxation Code provides that the state will reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions.
This bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse any local agencies for sales and use tax revenues lost by them pursuant to this bill.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2⁄3 of the membership of each house of the Legislature.
This bill would take effect immediately as a tax levy.
Vote: 2⁄3. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 6012.4 is added to the Revenue and
2Taxation Code, to read:
Notwithstanding Section 6012, “gross receipts” shall
4not include the surtax imposed pursuant to Part 14.5 (commencing
5with Section 33001).
Part 14.5 (commencing with Section 33001) is added
7to Division 2 of the Revenue and Taxation Code, to read:
8
This part is known, and may be cited, as the “Cocktails
12for Healthy Outcomes Act.”
(a) On and after January 1, 2016, there is hereby
14imposed a surtax on every individual for each purchase of a cocktail
15from an on-sale licensee for consumption or other use on the
16licensed, in-state premises of that on-sale licensee at the rate of
17five cents ($0.05) per cocktail.
18(b) For each calendar year beginning on and after January 1,
192017, the State Board of Equalization shall recompute the rate in
20subdivision (a) in accordance with the percentage change in the
21California Consumer Price Index, and that recomputed rate shall
22apply for that calendar year, except that the recomputed rate shall
23not be less than five cents ($0.05). The board shall recompute
24before January 1, 2017, and before each January 1
thereafter.
(a) Every on-sale licensee making sales of cocktails
26for consumption or other use on the licensed, in-state premises of
27the licensee shall, at the time of making such a sale to an individual,
28collect the surtax as a charge separate from, and not included in,
29any other fee, charge, or other amount paid by the purchaser.
30(b) The on-sale licensee shall collect the surtax from the
31individual purchasing cocktails on the licensee’s premises and
32give to the purchaser a receipt therefore in the manner and form
33prescribed by the board.
P4 1(c) The board shall administer and collect the surtax imposed
2by this part pursuant to the Fee Collection Procedures Law (Part
330 (commencing with Section
55001)).
4(d) (1) The surtax is required to be collected by an on-sale
5licensee and any amount unreturned to the purchaser who paid an
6amount in excess of the surtax, but was collected from the
7purchaser under the representation by the licensee that it was owed
8as a surtax, constitutes debts owed by the licensee to this state.
9(2) An individual is liable for the surtax until it has been paid
10to the state, except that payment to the on-sale licensee relieves
11the purchaser from further liability for the surtax. Any surtax
12collected from a purchaser that has not been remitted to the board
13shall be a debt owed to the state by the licensee required to collect
14and remit the surtax.
15(e) The board may prescribe, adopt, and enforce regulations
16relating to the administration and
enforcement of this part,
17including, but not limited to, collections, reporting, refunds, and
18appeals.
19(f) (1) The surtax imposed by this part is due and payable to
20the board quarterly on or before the last day of the month next
21succeeding each quarterly period.
22(2) On or before the last day of the month following each
23quarterly period, a return for the preceding quarterly period shall
24be filed with the board using electronic media, in the form
25prescribed by the board. Returns shall be authenticated in a form
26or pursuant to methods, as prescribed by the board.
(a) An on-sale licensee required to collect the surtax
28imposed under this part shall register with the board. Every
29application for registration shall be made in a form prescribed by
30the board and shall set forth the name under which the applicant
31transacts or intends to transact business, the location of the
32licensee’s place or places of business, and any other information
33that the State Board of Equalization may require. An application
34for registration shall be authenticated in a form or pursuant to
35methods as may be prescribed by the State Board of Equalization.
36(b) An application for registration filed pursuant to this section
37may be filed using electronic media as prescribed by the State
38Board of Equalization. Electronic media includes,
but is not limited
39to, computer modem, magnetic media, optical disc, facsimile
40machine, or telephone.
The taxes imposed by this part are in addition to any
2other tax imposed under the Alcoholic Beverage Tax Law (Part
314 (commencing with Section 32001)), the Sales and Use Tax Law
4(Part 1 (Commencing with Section 6001)), or the Bradley-Burns
5Uniform Sales and Use Tax law (Part 1.5 (commencing with
6Section 7200)), or in accordance with the Transactions and Use
7Tax Law (Part 1.6 (commencing with Section 7251)).
For purposes of this part, the following definitions shall
9apply:
10(a) “Board” means the State Board of Equalization.
11(b) “Cocktail” means any beverage that is, or contains, distilled
12spirits.
13(c) “Distilled spirits” has the same meaning as that term is
14defined by Section 23005 of the Business and Professions Code,
15as in effect January 1, 2016.
16(d) (1) “On-sale licensee” means an on-sale licensee under the
17Alcoholic Beverage Control Act (Division 9 (commencing with
18Section 23000) of the Business and Professions Code) that
19exercises the privileges
described in Section 23396 of the Business
20and Professions Code, as in effect January 1, 2016.
21(2) “On-sale licensee” does not include a licensee with any of
22the following:
23(A) An On-sale General for Train license.
24(B) An On-sale General for Boat license.
25(C) An On-sale General for Airplane license.
26(D) A Daily On-sale General license.
27(E) A Veterans’ Club license.
The Healthy California Special Fund is hereby
29established in the State Treasury. All revenues, less refunds,
30collected pursuant to this part shall be made in remittances to the
31State Board of Equalization and shall be deposited in the Healthy
32California Special Fund. Upon appropriation by the Legislature,
33all moneys in the fund shall be expended for the following
34purposes:
35(a) Developmental disability services, among other health
36programs.
37(b) Reimbursement to the State Board of Equalization for
38expenses incurred in the implementation, administration, and
39collection of the taxes imposed by this chapter.
Notwithstanding Section 2230 of the Revenue and
2Taxation Code, no appropriation is made by this act and the state
3shall not reimburse any local agency for any sales and use tax
4revenues lost by it under this act.
No reimbursement is required by this act pursuant to
6Section 6 of Article XIII B of the California Constitution because
7the only costs that may be incurred by a local agency or school
8district will be incurred because this act creates a new crime or
9infraction, eliminates a crime or infraction, or changes the penalty
10for a crime or infraction, within the meaning of Section 17556 of
11the Government Code, or changes the definition of a crime within
12the meaning of Section 6 of Article XIII B of the California
13Constitution.
This act provides for a tax levy within the meaning of
15Article IV of the Constitution and shall go into immediate effect.
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