BILL NUMBER: AB 821	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 13, 2016
	AMENDED IN ASSEMBLY  JANUARY 4, 2016

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:
 payments.  payments: dispensaries. 
   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.  The Medical Marijuana
Regulation and Safety Act provides for the licensure and regulation
of medical marijuana. 
   This bill would  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.
  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. 
   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.

   (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.  
   (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.