Amended in Assembly January 13, 2016

Amended in Assembly January 4, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 821

Introduced by Assembly Member Gipson

February 26, 2015

An act to amend Section 6479.3 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 821, as amended, Gipson. Sales and use taxes: administration: begin delete payments. end delete begin insert payments: dispensaries. end insert

The Sales and Use Tax Law, which is administered by the State Board of Equalization, requires any person whose estimated tax liability averages $10,000 or more per month to remit amounts due by electronic funds transfer, as provided. begin insert The Medical Marijuana Regulation and Safety Act provides for the licensure and regulation of medical marijuana. end insert

This bill would begin delete authorize the board to allow persons to remit amounts due by other than an electronic funds transfer if the board deems it necessary to facilitate collection of amounts due. end delete begin insert authorize, before January 1, 2022, a person issued a seller’s permit for a place of business that is a dispensary, as defined in Medical Marijuana Regulation and Safety Act, to remit amounts due for retail sales at the dispensary by a means other than electronic funds transfer. end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 6479.3 of the Revenue and Taxation
Code is amended to read:

6479.3.  

(a) Except as provided in subdivision (k), any person
whose estimated tax liability under this part averages ten thousand
dollars ($10,000) or more per month, as determined by the board
pursuant to methods of calculation prescribed by the board, shall
remit amounts due by an electronic funds transfer under procedures
prescribed by the board. Any person who collects use tax on a
voluntary basis is not required to remit amounts due by electronic
funds transfer.

(b) Any person whose estimated tax liability under this part
averages less than ten thousand dollars ($10,000) per month or
any person who voluntarily collects use tax may elect to remit
amounts due by electronic funds transfer with the approval of the
board.

(c) Any person remitting amounts due pursuant to subdivision
(a) or (b) shall perform electronic funds transfer in compliance
with the due dates set forth in Article 1 (commencing with Section
6451) and Article 1.1 (commencing with Section 6470). Payment
is deemed complete on the date the electronic funds transfer is
initiated, if settlement to the state’s demand account occurs on or
before the banking day following the date the transfer is initiated.
If settlement to the state’s demand account does not occur on or
before the banking day following the date the transfer is initiated,
payment is deemed to occur on the date settlement occurs.

(d) Any person remitting taxes by electronic funds transfer shall,
on or before the due date of the remittance, file a return for the
preceding reporting period in the form and manner prescribed by
the board. Any person who fails to timely file the required return
shall pay a penalty of 10 percent of the amount of taxes, exclusive
of prepayments, with respect to the period for which the return is
required.

(e) (1) Except as provided in paragraph (2), any person required
to remit taxes pursuant to this article who remits those taxes by
means other than appropriate electronic funds transfer shall pay a
penalty of 10 percent of the taxes incorrectly remitted.

(2) A person required to remit prepayments pursuant to this
article who remits a prepayment by means other than an appropriate
electronic funds transfer shall pay a penalty of 6 percent of the
prepayment amount incorrectly remitted.

(f) Except as provided in Sections 6476 and 6477, any person
who fails to pay any tax to the state or any amount of tax required
to be collected and paid to the state, except amounts of
determinations made by the board under Article 2 (commencing
with Section 6481) or Article 3 (commencing with Section 6511),
within the time required shall pay a penalty of 10 percent of the
tax or amount of tax, in addition to the tax or amount of tax, plus
interest at the modified adjusted rate per month, or fraction thereof,
established pursuant to Section 6591.5, from the date on which
the tax or the amount of tax required to be collected became due
and payable to the state until the date of payment.

(g) In determining whether a person’s estimated tax liability
averages ten thousand dollars ($10,000) or more per month, the
board may consider tax returns filed pursuant to this part and any
other information in the board’s possession.

(h) Except as provided in subdivision (i), the penalties imposed
by subdivisions (d), (e), and (f) shall be limited to a maximum of
10 percent of the taxes due, exclusive of prepayments, for any one
return. Any person remitting taxes by electronic funds transfer
shall be subject to the penalties under this section and not Section
6591.

(i) The penalties imposed with respect to paragraph (2) of
subdivision (e) and Sections 6476 and 6477 shall be limited to a
maximum of 6 percent of the prepayment amount.

(j) The board shall promulgate regulations pursuant to Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of
Title 2 of the Government Code for purposes of implementing this
section.

begin delete

(k) If the board deems it necessary to facilitate collection of
amounts due, the board may allow persons to remit amounts due
by other than an electronic funds transfer.

end delete begin insert

(k) Before January 1, 2022, a person issued a seller’s permit
for a place of business that is a dispensary, as defined in
subdivision (n) of Section 19300.5 of the Business and Professions
Code, may remit amounts due for retail sales at the dispensary by
a means other than electronic funds transfer.

end insert