BILL NUMBER: AB 2321	INTRODUCED
	BILL TEXT


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:

  SECTION 1.  Section 38211 of the Vehicle Code is amended to read:
   38211.  (a) The department shall withhold identification of or the
transfer of ownership of any vehicle subject to identification under
this division until the applicant 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, if any, unless the purchaser
presents evidence on a form prescribed by the State Board of
Equalization that sales tax will be paid by the seller or that use
tax has been collected by the seller or that the State Board of
Equalization finds that no use tax is due. If the applicant so
desires, he  or she  may pay the use tax and penalty, if
any, to the department so as to secure immediate action upon his 
or her  application for identification or transfer of
ownership, and thereafter he  or she  may apply through the
Department of Motor Vehicles to the State Board of Equalization under
 the provisions of  the Sales and Use Tax Law for a
refund of the amount  so  paid. 
   (b) If applicable, the department shall determine all local use
taxes that the applicant is responsible to pay by specific address
data provided by the applicant and to which the vehicle shall be
registered. The department shall utilize all available tools,
including those available through the State Board of Equalization, to
determine the correct use tax rates to apply to the applicant. 

   (b) 
    (c)  The department shall transmit  to the State
Board of Equalization  all collections of use tax and
penalty made under this  section.   section to
the State Board of Equalization. The department also shall collect
and transmit to the board specific address data provided by
applicants upon application and to which a purchased vehicle will be
registered, for proper allocation of use tax collections. The
transmitted data shall be subject to the requirements of Section 7056
of the Revenue and Taxation Code.  This transmittal shall be
made at least monthly, accompanied by a schedule in  such
form as   the form that  the department and board
may prescribe. 
   (c) 
    (d)  The State Board of Equalization shall reimburse the
department for its costs incurred in carrying out the provisions of
this section.  Such   The  reimbursement
shall be effected under agreement between the agencies, approved by
the Department of Finance. 
   (d) 
    (e)  In computing any use tax or penalty 
thereon under the provisions of this section   under
this section,  dollar fractions shall be disregarded in the
manner specified in Section  9559 of this code. 
 9559.  Payment of tax and penalty on this basis shall be
deemed full compliance with the requirements of the Sales and Use Tax
Law  and local transaction and use tax   law 
insofar as they are applicable to the use of vehicles to which this
section relates. 
   (f) It is the intent of the Legislature that the department and
the State Board of Equalization administer this part in a manner that
ensures that applicable Bradley-Burns uniform local sales taxes and
local transaction and use taxes are collected and then remitted to
the specific jurisdiction where the vehicle is registered. 
  SEC. 2.  Section 6293 of the Revenue and Taxation Code is amended
to read:
   6293.  (a) Except when the sale is by lease, when a vehicle
subject to identification under Division 16.5 (commencing with
Section 38000) of the Vehicle Code or a vehicle that qualifies under
the permanent trailer identification plate program pursuant to
subdivision (a) of Section 5014.1 of the Vehicle Code, is sold at
retail by other than a person licensed or certificated pursuant to
the Vehicle Code as a manufacturer, remanufacturer, dealer,
dismantler, or lessor-retailer, subject to Section 11615.5 of the
Vehicle Code, or a person required to hold a seller's permit pursuant
to Article 2 (commencing with Section 6066) of Chapter 2 by reason
of the number, scope, and character of his or her sales of those
vehicles, the retailer is not required or authorized to collect the
use tax from the purchaser, but the purchaser of the vehicle shall
pay the use tax to the Department of Motor Vehicles acting for and on
behalf of the board pursuant to Section 38211 of the Vehicle Code.
   (b) If the purchaser makes an application to that department
 which   that  is not timely, and is
subject to penalty because of delinquency in effecting identification
or transfer of ownership of the vehicle, he or she then becomes
liable also for penalty as specified in Section 6591  of this
code,  but no interest shall accrue.
   (c) Application to that department by the purchaser relieves the
purchaser of the obligation to file a return with the board under
Section 6452.
   (d) If the purchaser does not make application to that department,
or does not pay the amount of use tax due, or files a return with
the board under Section 6455  which   that 
is not timely, interest and penalties shall apply with respect to
the unpaid amount as provided in Chapter 5 (commencing with Section
6451). 
   (e) Use taxes collected by the Department of Motor Vehicles and
transmitted to the board pursuant to Section 38211 of the Vehicle
Code shall be allocated to the jurisdiction where the purchaser
registers the purchased vehicle, by the specific address data
provided to the board by the Department of Motor Vehicles. The board
shall reimburse the Department of Motor Vehicles as prescribed in
subdivision (d) of Section 38211 of the Vehicle Code.