California Legislature—2015–16 Regular Session

Assembly BillNo. 2321


Introduced by Assembly Member Rodriguez

February 18, 2016


An act to amend Section 38211 of the Vehicle Code, and to amend Section 6293 of the Revenue and Taxation Code, relating to off-highway vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 2321, as introduced, Rodriguez. Off-highway vehicles: transfers of title or interest: use tax.

Existing law requires the Department of Motor Vehicles to withhold identification of, or the transfer of ownership, of any off-highway vehicle subject to identification until the applicant for identification pays to the department the use tax measured by the sales price of the vehicle as required by the Sales and Use Tax Law, together with penalty, except as specified. Existing law requires the department to transmit all collections of use tax and penalty to the State Board of Equalization.

This bill would require, in addition, that the department determine all local use taxes the applicant is responsible to pay by specific address data provided by the applicant, and where the vehicle is to be registered. The bill would require the department to transmit the address data to the board, and would make the data subject to specified information sharing provisions. This bill would require the board to allocate the use taxes transmitted by the department to the jurisdiction where the purchaser registers the purchased vehicle by the specific address data provided to the board by the department.

This bill would declare the intent of the Legislature that the department and the board administer the provisions relating to identification of off-highway vehicles in a manner that ensures that applicable local sales taxes and local transaction and use taxes are collected and then remitted to the specific jurisdiction where the vehicle is registered.

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

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

P2    1

SECTION 1.  

Section 38211 of the Vehicle Code is amended
2to read:

3

38211.  

(a) The department shall withhold identification of or
4the transfer of ownership of any vehicle subject to identification
5under this division until the applicant pays to the department the
6use tax measured by the sales price of the vehicle as required by
7the Sales and Use Tax Law, together with penalty, if any, unless
8the purchaser presents evidence on a form prescribed by the State
9Board of Equalization that sales tax will be paid by the seller or
10that use tax has been collected by the seller or that the State Board
11of Equalization finds that no use tax is due. If the applicant so
12desires, hebegin insert or sheend insert may pay the use tax and penalty, if any, to the
13department so as to secure immediate action upon hisbegin insert or herend insert
14 application for identification or transfer of ownership, and
15thereafter hebegin insert or sheend insert may apply through the Department of Motor
16Vehicles to the State Board of Equalization underbegin delete the provisions
17ofend delete
the Sales and Use Tax Law for a refund of the amountbegin delete soend delete paid.

begin insert

18(b) If applicable, the department shall determine all local use
19taxes that the applicant is responsible to pay by specific address
20data provided by the applicant and to which the vehicle shall be
21registered. The department shall utilize all available tools,
22including those available through the State Board of Equalization,
23to determine the correct use tax rates to apply to the applicant.

end insert
begin delete

24(b)

end delete

25begin insert(c)end insert The department shall transmitbegin delete to the State Board of
26Equalizationend delete
all collections of use tax and penalty made under this
27begin delete section.end deletebegin insert section to the State Board of Equalization. The department
28also shall collect and transmit to the board specific address data
29provided by applicants upon application and to which a purchased
30vehicle will be registered, for proper allocation of use tax
31collections. The transmitted data shall be subject to the
32requirements of Section 7056 of the Revenue and Taxation Code.end insert

P3    1 This transmittal shall be made at least monthly, accompanied by
2a schedule inbegin delete such form asend deletebegin insert the form thatend insert the department and board
3may prescribe.

begin delete

4(c)

end delete

5begin insert(d)end insert The State Board of Equalization shall reimburse the
6department for its costs incurred in carrying out the provisions of
7this section.begin delete Suchend deletebegin insert Theend insert reimbursement shall be effected under
8agreement between the agencies, approved by the Department of
9Finance.

begin delete

10(d)

end delete

11begin insert(e)end insert In computing any use tax or penaltybegin delete thereon under the
12provisions of this sectionend delete
begin insert under this section,end insert dollar fractions shall
13be disregarded in the manner specified in Sectionbegin delete 9559 of this
14code.end delete
begin insert 9559.end insert Payment of tax and penalty on this basis shall be
15deemed full compliance with the requirements of the Sales and
16Use Tax Lawbegin insert and local transaction and use tax end insertbegin insertlawend insert insofar as they
17are applicable to the use of vehicles to which this section relates.

begin insert

18(f) It is the intent of the Legislature that the department and the
19State Board of Equalization administer this part in a manner that
20ensures that applicable Bradley-Burns uniform local sales taxes
21and local transaction and use taxes are collected and then remitted
22to the specific jurisdiction where the vehicle is registered.

end insert
23

SEC. 2.  

Section 6293 of the Revenue and Taxation Code is
24amended to read:

25

6293.  

(a) Except when the sale is by lease, when a vehicle
26subject to identification under Division 16.5 (commencing with
27Section 38000) of the Vehicle Code or a vehicle that qualifies
28under the permanent trailer identification plate program pursuant
29to subdivision (a) of Section 5014.1 of the Vehicle Code, is sold
30at retail by other than a person licensed or certificated pursuant to
31the Vehicle Code as a manufacturer, remanufacturer, dealer,
32dismantler, or lessor-retailer, subject to Section 11615.5 of the
33Vehicle Code, or a person required to hold a seller’s permit
34pursuant to Article 2 (commencing with Section 6066) of Chapter
352 by reason of the number, scope, and character of his or her sales
36of those vehicles, the retailer is not required or authorized to collect
37the use tax from the purchaser, but the purchaser of the vehicle
38shall pay the use tax to the Department of Motor Vehicles acting
39for and on behalf of the board pursuant to Section 38211 of the
40Vehicle Code.

P4    1(b) If the purchaser makes an application to that department
2begin delete whichend deletebegin insert thatend insert is not timely, and is subject to penalty because of
3delinquency in effecting identification or transfer of ownership of
4the vehicle, he or she then becomes liable also for penalty as
5specified in Section 6591begin delete of this code,end delete but no interest shall accrue.

6(c) Application to that department by the purchaser relieves the
7purchaser of the obligation to file a return with the board under
8Section 6452.

9(d) If the purchaser does not make application to that
10department, or does not pay the amount of use tax due, or files a
11return with the board under Section 6455begin delete whichend deletebegin insert thatend insert is not timely,
12interest and penalties shall apply with respect to the unpaid amount
13as provided in Chapter 5 (commencing with Section 6451).

begin insert

14(e) Use taxes collected by the Department of Motor Vehicles
15and transmitted to the board pursuant to Section 38211 of the
16Vehicle Code shall be allocated to the jurisdiction where the
17purchaser registers the purchased vehicle, by the specific address
18data provided to the board by the Department of Motor Vehicles.
19The board shall reimburse the Department of Motor Vehicles as
20prescribed in subdivision (d) of Section 38211 of the Vehicle Code.

end insert


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