AB 2321,
as amended, Rodriguez. begin deleteOff-highway vehicles: end deletebegin insertVehicles: registration and end inserttransfers of title or interest: use tax.
Existing law requires the Department of Motor Vehicles tobegin insert withhold the registration or the transfer of registration of any vehicle or vessel, and toend insert withhold identificationbegin delete of, or theend deletebegin insert orend insert transfer ofbegin delete ownership,end deletebegin insert ownershipend insert of any off-highway vehicle subject tobegin delete identificationend deletebegin insert
identification,end insert until the applicant forbegin insert registration orend insert identification pays to the department the use tax measured by the sales price of the vehiclebegin insert or vesselend insert 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 vehiclebegin insert or vesselend insert 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 vehiclebegin insert or vesselend insert 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 tobegin insert registration of vehicles and vessels andend insert identification of off-highway vehiclesbegin insert for these purposesend insert 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 vehiclebegin insert or vesselend insert 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:
begin insertSection 6292 of the end insertbegin insertRevenue and Taxation Codeend insert
2
begin insert is amended to read:end insert
(a) Except when the sale is by lease, when a mobilehome
4or commercial coach required to be registered annually under the
5Health and Safety Code or a vehicle required to be registered under
6the Vehicle Code is sold at retail by other than a person licensed
7or certificated pursuant to the Health and Safety Code or the
8Vehicle Code as a manufacturer, remanufacturer, dealer,
9dismantler, or lessor-retailer, subject to Section 11615.5 of the
10Vehicle Code, the retailer is not required or authorized to collect
11the use tax from the purchaser, but the purchaser of the vehicle
12shall pay the use tax to the Department of Housing and Community
13Development acting for and on behalf of the board pursuant to
14Section 18123 of the Health and Safety Code or to the Department
15of Motor Vehicles acting for and
on behalf of the board pursuant
16to Section 4750.5 of the Vehicle Code.
17(b) If the purchaser makes an application to either department
18begin delete whichend deletebegin insert thatend insert is not timely, and is subject to penalty because of
19delinquency in effecting registration or transfer of registration of
20the vehicle, he or she then becomes liable also for penalty as
21specified in Section 6591, but no interest shall accrue.
22(c) Application to the appropriate department by the purchaser
23relieves the purchaser of the obligation to file a return with the
24board under Section 6452.
P3 1(d) If the purchaser does not make application to either
2department, or does not pay the
amount of use tax due, or files a
3return with the board under Section 6455begin delete whichend deletebegin insert
thatend insert is not timely,
4interest and penalties shall apply with respect to the unpaid amount
5as provided in Chapter 5 (commencing with Section 6451).
6
(e) Use taxes collected by the Department of Motor Vehicles
7and transmitted to the board pursuant to Section 4750.5 of the
8Vehicle Code shall be allocated to the jurisdiction where the
9purchaser registers the purchased vehicle, by the specific address
10data provided to the board by the Department of Motor Vehicles.
11The board shall reimburse the Department of Motor Vehicles as
12prescribed in subdivision (d) of Section 4750.5 of the Vehicle Code.
begin insertSection 6293 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
14amended to read:end insert
(a) Except when the sale is by lease, when a vehicle
16subject to identification under Division 16.5 (commencing with
17Section 38000) of the Vehicle Code or a vehicle that qualifies
18under the permanent trailer identification plate program pursuant
19to subdivision (a) of Section 5014.1 of the Vehicle Code, is sold
20at retail by other than a person licensed or certificated pursuant to
21the Vehicle Code as a manufacturer, remanufacturer, dealer,
22dismantler, or lessor-retailer, subject to Section 11615.5 of the
23Vehicle Code, or a person required to hold a seller’s permit
24pursuant to Article 2 (commencing with Section 6066) of Chapter
252 by reason of the number, scope, and character of his or her sales
26of those vehicles, the retailer is not required or authorized to collect
27the use tax from the
purchaser, but the purchaser of the vehicle
28shall pay the use tax to the Department of Motor Vehicles acting
29for and on behalf of the board pursuant to Section 38211 of the
30Vehicle Code.
31(b) If the purchaser makes an application to that department
32which is not timely, and is subject to penalty because of
33delinquency in effecting identification or transfer of ownership of
34the vehicle, he or she then becomes liable also for penalty as
35specified in Section 6591 of this code, but no interest shall accrue.
36(c) Application to that department by the purchaser relieves the
37purchaser of the obligation to file a return with the board under
38Section 6452.
39(d) If the purchaser does not make application to that
40department, or does not pay the amount of use tax due, or files a
P4 1return with the board under Section 6455 which is not
timely,
2interest and penalties shall apply with respect to the unpaid amount
3as provided in Chapter 5 (commencing with Section 6451).
begin insertSection 6294 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
5amended to read:end insert
(a) When an undocumented vessel required to be
7registered under the Vehicle Code is sold at retail by other than a
8person holding a seller’s permit and regularly engaged in the
9business of selling vessels, the retailer is not required or authorized
10to collect the use tax from the purchaser, but the purchaser of the
11vessel must pay the use tax to the Department of Motor Vehicles
12acting for, and on behalf of, the board pursuant to Section 9928
13of the Vehicle Code.
14(b) If the purchaser makes an application to the department
15begin delete whichend deletebegin insert thatend insert is
not timely, and is subject to penalty because of
16delinquency in effecting registration or transfer of registration of
17the undocumented vessel, he or she then becomes liable also for
18penalty as specified in Section 6591, but no interest shall accrue.
19(c) Application to the department by the purchaser shall relieve
20the purchaser of the obligation to file a return with the board under
21Section 6452.
22(d) If the purchaser does not make application to either
23department, or does not pay the amount of use tax due, or files a
24return with the board under Section 6455begin delete whichend deletebegin insert thatend insert is not timely,
25interest and penalties shall apply with respect to the unpaid amount
26as provided in Chapter 5 (commencing with
Section 6451).
27
(e) Use taxes collected by the Department of Motor Vehicles
28and transmitted to the board pursuant to Section 9928 of the
29Vehicle Code shall be allocated to the jurisdiction where the
30purchaser registers the purchased vessel, by the specific address
31data provided to the board by the Department of Motor Vehicles.
32The board shall reimburse the Department of Motor Vehicles as
33prescribed in subdivision (d) of Section 9928 of the Vehicle Code.
begin insertSection 4750.5 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to read:end insert
(a) The department shall withhold the registration or
36the transfer of registration ofbegin delete anyend deletebegin insert aend insert vehicle sold at retail tobegin delete anyend deletebegin insert anend insert
37 applicant bybegin delete anyend deletebegin insert aend insert person other than a vehicle manufacturer or
38dealer holding a license and
certificate issued pursuant to Chapter
394 (commencing with Section 11700) of Division 5, or an
40automobile dismantler holding a license and certificate issued
P5 1pursuant to Chapter 3 (commencing with Section 11500) of
2Division 5, or a lessor-retailer holding a license issued pursuant
3to Chapter 3.5 (commencing with Section 11600) of Division 5,
4and subject to the provisions of Section 11615.5, until the applicant
5pays to the department the use tax measured by the sales price of
6the vehicle as required by the Sales and Use Tax Law (Part 1
7(commencing with Section 6001) of Division 2 of the Revenue
8and Taxation Code), together with penalty, if any, unless the State
9Board of Equalization finds that no use tax is due. If the applicant
10so desires, hebegin insert or sheend insert may pay the use tax and penalty, if any, to
11the department so as to secure immediate action upon hisbegin insert
or herend insert
12 application for registration or transfer of registration, and thereafter
13hebegin insert or sheend insert may apply through the Department of Motor Vehicles
14to the State Board of Equalization underbegin delete the provisions ofend delete the Sales
15and Use Tax Law for a refund of the amountbegin delete soend delete
paid.
16
(b) (1) If applicable, the department shall determine all local
17use taxes that the applicant is responsible to pay by specific
18address data provided by the applicant and to which the vehicle
19shall be registered. The department shall utilize all available tools,
20including those available through the State Board of Equalization,
21to determine the correct use tax rates to apply to the applicant.
22
(2) Using the specific address data provided by the applicant
23and to which the vehicle shall be registered, the department shall
24identify the correct tax area code for the applicable local
25jurisdiction to which the vehicle shall be registered and to which
26the local use tax shall be allocated. The State Board of Equalization
27shall provide a list of state tax area
codes applicable to each
28jurisdiction for purposes of allocating the local use taxes directly,
29pursuant to the Bradley-Burns Uniform Local Sales and Use Tax
30Law (Part 1.5 (commencing with Section 7200) of Division 2 of
31the Revenue and Taxation Code) and the Transactions and Use
32Tax Law (Part 1.6 (commencing with Section 7251) of Division 2
33of the Revenue and Taxation Code).
34(b)
end delete
35begin insert(c)end insert The department shall transmitbegin delete to the State Board of
all collections of use tax and penalty made under this
36Equalizationend delete
37begin delete section.end deletebegin insert
section to the State Board of Equalization. The department
38also shall collect and transmit to the board specific address data
39provided by applicants upon application and to which a purchased
40vehicle will be registered, for proper allocation of use tax
P6 1collections. The transmitted data shall be subject to the
2requirements of Section 7056 of the Revenue and Taxation Code.end insert
3 This transmittal shall be made at least monthly, accompanied by
4a schedule inbegin delete such form asend deletebegin insert the form thatend insert the department and board
5may prescribe.
6(c)
end delete
7begin insert(d)end insert The State Board of Equalization shall reimburse the
8department for its costs incurred in carrying out the provisions of
9this section.begin delete Suchend deletebegin insert Theend insert reimbursement shall be effected under
10agreement between the agencies, approved by the Department of
11Finance.
12(d)
end delete
13begin insert(e)end insert In computing any use tax or penaltybegin delete thereon under the begin insert
underend insert
this section, dollar fractions shall be
14provisions ofend delete
15disregarded in the manner specified in Sectionbegin delete 9559 of this code.end delete
16begin insert 9559.end insert Payment of tax and penalty on this basis shall be deemed
17full compliance with the requirements of the Sales and Use Tax
18Lawbegin insert and local transaction and use tax lawend insert insofar as they are
19applicable to the use of vehicles to which this section relates.
20
(f) It is the intent of the Legislature that the department and the
21State Board of Equalization administer this part in a manner that
22ensures that applicable Bradley-Burns uniform local sales taxes
23
and local transaction and use taxes are collected and then remitted
24to the specific jurisdiction where the vehicle is registered.
begin insertSection 9928 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to read:end insert
begin insert(a)end insertbegin insert end insertThe department shall withhold the certificate of
27number or the transfer of registration ofbegin delete anyend deletebegin insert aend insert vessel sold at retail
28tobegin delete anyend deletebegin insert anend insert applicant bybegin delete anyend deletebegin insert
aend insert person other than a person holding a
29seller’s permit pursuant to Section 6066 of the Revenue and
30Taxation Code, and regularly engaged in the business of selling
31vessels, until the applicant pays to the department the use tax
32measured by the sales price of the vessel as required by the Sales
33and Use Taxbegin delete Law,end deletebegin insert Law (Part 1 (commencing with Section 6001)
34of Division 2 of the Revenue and Taxation Code),end insert together with
35penalty, if any, unless the State Board of Equalization finds that
36no use tax is due. If the applicant so desires, hebegin insert or sheend insert may pay
37the use tax and penalty, if any, to the department so as to secure
38immediate action upon hisbegin insert
or herend insert application for registration or
39transfer of registration and thereafter hebegin insert or sheend insert may apply through
40the Department of Motor Vehicles to the State Board of
P7 1Equalization underbegin delete the provisions ofend delete
the Sales and Use Tax Law
2for a refund of the amountbegin delete soend delete paid.
3
(b) (1) If applicable, the department shall determine all local
4use taxes that the applicant is responsible to pay by specific
5address data provided by the applicant and to which the vessel
6shall be registered. The department shall utilize all available tools,
7including those available through the State Board of Equalization,
8to determine the correct use tax rates to apply to the applicant.
9
(2) Using the specific address data provided by the applicant
10and to which the vehicle shall be registered, the department shall
11identify the correct tax area code for the applicable local
12jurisdiction to which the vessel shall be
registered and to which
13the local use tax shall be allocated. The State Board of Equalization
14shall provide a list of state tax area codes applicable to each
15jurisdiction for purposes of allocating the local use taxes directly,
16pursuant to the Bradley-Burns Uniform Local Sales and Use Tax
17Law (Part 1.5 (commencing with Section 7200) of Division 2 of
18the Revenue and Taxation Code) and the Transactions and Use
19Tax Law (Part 1.6 (commencing with Section 7251) of Division 2
20of the Revenue and Taxation Code).
21(b)
end delete
22begin insert(c)end insert The department shall transmitbegin delete to the State Board of
all collections of the use tax and penalty made under
23Equalizationend delete
24thisbegin delete section.end deletebegin insert section to the State Board of Equalization. The
25department also shall collect and transmit to the board specific
26address data provided by applicants upon application and to which
27a purchased vessel will be registered, for proper allocation of use
28tax collections. The transmitted data shall be subject to the
29requirements of Section 7056 of the Revenue and Taxation Code.end insert
30 This transmittal shall be made at least monthly, accompanied by
31a schedule inbegin delete such form asend deletebegin insert the form thatend insert the department and board
32may prescribe.
33(c)
end delete
34begin insert(d)end insert The State Board of Equalization shall reimburse the
35department for its costs incurred in carrying out the provisions of
36this section.
37(d)
end delete
38begin insert(e)end insert In computing any use tax or penaltybegin delete thereon under the begin insert under thisend insert section, dollar fractions shall be
39provisions of theend delete
40disregarded in the manner specified in Section 9559.
Payment of
P8 1tax and penalty on this basis shall be deemed full compliance with
2the requirements of the Sales and Use Tax Lawbegin insert and local
3transaction and use tax lawend insert insofar as they are applicable to the
4use of vessels to which this section relates.
5(e)
end delete
6begin insert(f)end insert The department and the State Board of Equalization shall
7enter into an agreement for the collection of the use tax pursuant
8to this section and Section 6294 of the Revenue and Taxation Code.
9The agreement shall specify the procedures agreed upon by the
10department and the board for collection of the tax and the
11
reimbursement provided for in subdivisionbegin delete (c).end deletebegin insert
(d).end insert The agreement
12shall be approved by the Department of Finance.
13
(g) It is the intent of the Legislature that the department and
14the State Board of Equalization administer this part in a manner
15that ensures that applicable Bradley-Burns uniform local sales
16taxes and local transaction and use taxes are collected and then
17remitted to the specific jurisdiction where the vessel is registered.
begin insertSection 38211 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to read:end insert
(a) The department shall withhold identification of or
20the transfer of ownership ofbegin delete anyend deletebegin insert aend insert vehicle subject to identification
21under this division until the applicant pays to the department the
22use tax measured by the sales price of the vehicle as required by
23the Sales and Use Tax Law, together with penalty, if any, unless
24the purchaser presents evidence on a form prescribed by the State
25Board of Equalization that sales tax will be paid by the seller or
26that use tax has been collected by the seller or that the State Board
27of Equalization finds that no use tax is due. If the applicant so
28desires, hebegin insert
or sheend insert may pay the use tax and penalty, if any, to the
29department so as to secure immediate action upon hisbegin insert
or herend insert
30 application for identification or transfer of ownership, and
31thereafter hebegin insert or sheend insert may apply through the Department of Motor
32Vehicles to the State Board of Equalization underbegin delete the provisions the Sales and Use Tax Law for a refund of the amount
33ofend deletebegin delete soend delete paid.
34
(b) (1) If applicable, the department shall determine all local
35use taxes that the applicant is responsible to pay by specific
36address data provided by the applicant and to which the vehicle
37shall be registered. The department shall utilize all available tools,
38including
those available through the State Board of Equalization,
39to determine the correct use tax rates to apply to the applicant.
P9 1
(2) Using the specific address data provided by the applicant
2and to which the vehicle shall be registered, the department shall
3identify the correct tax area code for the applicable local
4jurisdiction to which the vehicle shall be registered and to which
5the local use tax shall be allocated. The State Board of Equalization
6shall provide a list of state tax area codes applicable to each
7jurisdiction for purposes of allocating the local use taxes directly,
8pursuant to the Bradley-Burns Uniform Local Sales and Use Tax
9Law (Part 1.5 (commencing with Section 7200) of Division 2 of
10the Revenue and Taxation Code) and the Transactions and Use
11Tax Law (Part 1.6 (commencing with Section 7251) of Division 2
12of the Revenue and Taxation Code).
13(b)
end delete
14begin insert(c)end insert The department shall transmitbegin delete to the State Board of all collections of use tax and penalty made under this
15Equalizationend delete
16begin delete section.end deletebegin insert section to the State Board of Equalization. The department
17also shall collect and transmit to the board specific address data
18provided by applicants upon application and to which a purchased
19vehicle will be registered, for proper allocation of use tax
20collections. The transmitted data shall be subject to the
21requirements of Section 7056 of the Revenue and Taxation Code.end insert
22 This transmittal shall be made at least monthly, accompanied by
23a
schedule inbegin delete such
form asend delete
24may prescribe.
25(c)
end delete
26begin insert(d)end insert The State Board of Equalization shall reimburse the
27department for its costs incurred in carrying out the provisions of
28this section.begin delete Suchend deletebegin insert Theend insert reimbursement shall be effected under
29agreement between the agencies, approved by the Department of
30Finance.
31(d)
end delete
32begin insert(e)end insert In computing any use tax or penaltybegin delete thereon under the begin insert under this section,end insert dollar fractions shall
33provisions of this sectionend delete
34be disregarded in the manner specified in Sectionbegin delete 9559 of this begin insert 9559.end insert Payment of tax and penalty on this basis shall be
35code.end delete
36deemed full compliance with the requirements of the Sales and
37Use Tax Lawbegin insert and local transaction and use tax lawend insert
insofar as they
38are applicable to the use of vehicles to which this section relates.
39
(f) It is the intent of the Legislature that the department and the
40State Board of Equalization administer this part in a manner that
P10 1ensures that applicable Bradley-Burns uniform local sales taxes
2and local transaction and use taxes are collected and then remitted
3to the specific jurisdiction where the vehicle is registered.
Section 38211 of the Vehicle Code is amended
5to read:
(a) The department shall withhold identification of or
7the transfer of ownership of any vehicle subject to identification
8under this division until the applicant pays to the department the
9use tax measured by the sales price of the vehicle as required by
10the Sales and Use Tax Law, together with penalty, if any, unless
11the purchaser presents evidence on a form prescribed by the State
12Board of Equalization that sales tax will be paid by the seller or
13that use tax has been collected by the seller or that the State Board
14of Equalization finds that no use tax is due. If the applicant so
15desires, he or she may pay the use tax and penalty, if any, to the
16department so as to secure immediate
action upon his or her
17application for identification or transfer of ownership, and
18thereafter he or she may apply through the Department of Motor
19Vehicles to the State Board of Equalization under the Sales and
20Use Tax Law for a refund of the amount paid.
21(b) If applicable, the department shall determine all local use
22taxes that the applicant is responsible to pay by specific address
23data provided by the applicant and to which the vehicle shall be
24registered. The
department shall utilize all available tools, including
25those available through the State Board of Equalization, to
26determine the correct use tax rates to apply to the applicant.
27(c) The department shall transmit
all collections of use tax and
28penalty made under this section to the State Board of Equalization.
29The department also shall collect and transmit to the board specific
30address data provided by applicants upon application and to which
31a purchased vehicle will be registered, for proper allocation of use
32tax collections. The transmitted data shall be subject to the
33requirements of Section 7056 of the Revenue and Taxation Code.
34This transmittal shall be made at least monthly, accompanied by
35a schedule in the form that the department and board may prescribe.
36(d) The State Board of Equalization shall reimburse the
37department for its costs incurred in carrying out the provisions of
38this section. The reimbursement shall be effected under agreement
39between the agencies, approved by the Department of Finance.
P11 1(e) In computing any use tax or penalty
under this section, dollar
2fractions shall be disregarded in the manner specified in Section
39559. Payment of tax and penalty on this basis shall be deemed
4full compliance with the requirements of the Sales and Use Tax
5Law and local transaction and use tax law insofar as they are
6applicable to the use of vehicles to which this section relates.
7(f) It is the intent of the Legislature that the department and
the
8State Board of Equalization administer this part in a manner that
9ensures that applicable Bradley-Burns uniform local sales taxes
10and local transaction and use taxes are collected and then remitted
11to the specific jurisdiction where the vehicle is registered.
Section 6293 of the Revenue and Taxation Code is
13amended to read:
(a) Except when the sale is by lease, when a vehicle
15subject to identification under Division 16.5 (commencing with
16Section 38000) of the Vehicle Code or a vehicle that qualifies
17under the permanent trailer identification plate program pursuant
18to subdivision (a) of Section 5014.1 of the Vehicle Code, is sold
19at retail by other than a person licensed or certificated pursuant to
20the Vehicle Code as a manufacturer, remanufacturer, dealer,
21dismantler, or lessor-retailer, subject to Section 11615.5 of the
22Vehicle Code, or a person required to hold a seller’s permit
23pursuant to Article 2 (commencing with Section 6066) of Chapter
242 by reason of the number, scope, and character of his or her sales
25of those
vehicles, the retailer is not required or authorized to collect
26the use tax from the purchaser, but the purchaser of the vehicle
27shall pay the use tax to the Department of Motor Vehicles acting
28for and on behalf of the board pursuant to Section 38211 of the
29Vehicle Code.
30(b) If the purchaser makes an application to that department that
31is not timely, and is subject to penalty because of delinquency in
32effecting identification or transfer of ownership of the vehicle, he
33or she then becomes liable also for penalty as specified in Section
346591 but no interest shall accrue.
35(c) Application to that department by the purchaser relieves the
36purchaser of the obligation to file a return with the board under
37Section 6452.
38(d) If the purchaser does not make application to that
39department, or does not pay the amount of use tax due, or files a
40return with the board under Section 6455 that is not timely, interest
P12 1and penalties shall apply with respect to the unpaid amount as
2provided in Chapter 5 (commencing with Section 6451).
3(e) Use taxes collected by the Department of Motor Vehicles
4and transmitted to the board pursuant to Section 38211 of the
5Vehicle Code shall be allocated to the jurisdiction where the
6purchaser registers the purchased vehicle, by the specific address
7data provided to the board by the Department of Motor Vehicles.
8The board shall reimburse the Department of Motor Vehicles as
9prescribed in subdivision (d) of Section 38211 of the Vehicle Code.
O
98