BILL NUMBER: AB 2321 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 28, 2016
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 amend Sections 6292, 6293, and 6294 of the
Revenue and Taxation Code, and to amend Sections 4750.5, 9928, and
38211 of the Vehicle Code, relating to vehicles.
LEGISLATIVE COUNSEL'S DIGEST
AB 2321, as amended, Rodriguez. Off-highway vehicles:
Vehicles: registration and transfers of title or
interest: use tax.
Existing law requires the Department of Motor Vehicles to
withhold the registration or the transfer of registration of any
vehicle or vessel, and to withhold identification of,
or the or transfer of ownership,
ownership of any off-highway vehicle subject to
identification identification, until
the applicant for registration or identification pays to
the department the use tax measured by the sales price of the vehicle
or vessel 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 or vessel 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 or vessel 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
registration of vehicles and vessels and identification of
off-highway vehicles for these purposes 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 or vessel 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 6292 of the Revenue
and Taxation Code is amended to read:
6292. (a) Except when the sale is by lease, when a mobilehome or
commercial coach required to be registered annually under the Health
and Safety Code or a vehicle required to be registered under the
Vehicle Code is sold at retail by other than a person licensed or
certificated pursuant to the Health and Safety Code or the Vehicle
Code as a manufacturer, remanufacturer, dealer, dismantler, or
lessor-retailer, subject to Section 11615.5 of the Vehicle Code, 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 Housing and Community Development acting for
and on behalf of the board pursuant to Section 18123 of the Health
and Safety Code or to the Department of Motor Vehicles acting for and
on behalf of the board pursuant to Section 4750.5 of the Vehicle
Code.
(b) If the purchaser makes an application to either department
which that is not timely, and is
subject to penalty because of delinquency in effecting registration
or transfer of registration of the vehicle, he or she then becomes
liable also for penalty as specified in Section 6591, but no interest
shall accrue.
(c) Application to the appropriate 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 either
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 4750.5 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 4750.5 of the Vehicle Code.
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
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 is not timely, interest and
penalties shall apply with respect to the unpaid amount as provided
in Chapter 5 (commencing with Section 6451).
SEC. 3. Section 6294 of the Revenue and
Taxation Code is amended to read:
6294. (a) When an undocumented vessel required to be registered
under the Vehicle Code is sold at retail by other than a person
holding a seller's permit and regularly engaged in the business of
selling vessels, the retailer is not required or authorized to
collect the use tax from the purchaser, but the purchaser of the
vessel must pay the use tax to the Department of Motor Vehicles
acting for, and on behalf of, the board pursuant to Section 9928 of
the Vehicle Code.
(b) If the purchaser makes an application to the department
which that is not timely, and is
subject to penalty because of delinquency in effecting registration
or transfer of registration of the undocumented vessel, he or she
then becomes liable also for penalty as specified in Section 6591,
but no interest shall accrue.
(c) Application to the department by the purchaser shall relieve
the purchaser of the obligation to file a return with the board under
Section 6452.
(d) If the purchaser does not make application to either
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 9928 of the Vehicle Code
shall be allocated to the jurisdiction where the purchaser registers
the purchased vessel, 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 9928 of the Vehicle Code.
SEC. 4. Section 4750.5 of the Vehicle
Code is amended to read:
4750.5. (a) The department shall withhold the registration or the
transfer of registration of any a
vehicle sold at retail to any an
applicant by any a person other than a
vehicle manufacturer or dealer holding a license and certificate
issued pursuant to Chapter 4 (commencing with Section 11700) of
Division 5, or an automobile dismantler holding a license and
certificate issued pursuant to Chapter 3 (commencing with Section
11500) of Division 5, or a lessor-retailer holding a license issued
pursuant to Chapter 3.5 (commencing with Section 11600) of Division
5, and subject to the provisions of Section 11615.5, 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 (Part 1
(commencing with Section 6001) of Division 2 of the Revenue and
Taxation Code), together with penalty, if any, unless 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 registration or transfer of
registration, 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) (1) 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.
(2) Using the specific address data provided by the applicant and
to which the vehicle shall be registered, the department shall
identify the correct tax area code for the applicable local
jurisdiction to which the vehicle shall be registered and to which
the local use tax shall be allocated. The State Board of Equalization
shall provide a list of state tax area codes applicable to each
jurisdiction for purposes of allocating the local use taxes directly,
pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law
(Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue
and Taxation Code) and the Transactions and Use Tax Law (Part 1.6
(commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code).
(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 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. 5. Section 9928 of the Vehicle
Code is amended to read:
9928. (a) The department shall withhold the
certificate of number or the transfer of registration of
any a vessel sold at retail to any
an applicant by any a
person other than a person holding a seller's permit pursuant
to Section 6066 of the Revenue and Taxation Code, and regularly
engaged in the business of selling vessels, until the applicant pays
to the department the use tax measured by the sales price of the
vessel as required by the Sales and Use Tax Law,
Law (Part 1 (commencing with Section 6001) of Division 2 of the
Revenue and Taxation Code), together with penalty, if any,
unless 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 registration or
transfer of registration 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) (1) 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 vessel 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.
(2) Using the specific address data provided by the applicant and
to which the vehicle shall be registered, the department shall
identify the correct tax area code for the applicable local
jurisdiction to which the vessel shall be registered and to which the
local use tax shall be allocated. The State Board of Equalization
shall provide a list of state tax area codes applicable to each
jurisdiction for purposes of allocating the local use taxes directly,
pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law
(Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue
and Taxation Code) and the Transactions and Use Tax Law (Part 1.6
(commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code).
(b)
(c) The department shall transmit to the State
Board of Equalization all collections of the 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 vessel 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.
(d)
(e) In computing any use tax or penalty
thereon under the provisions of the under this
section, dollar fractions shall be disregarded in the manner
specified in Section 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 vessels to which this
section relates.
(e)
(f) The department and the State Board of Equalization
shall enter into an agreement for the collection of the use tax
pursuant to this section and Section 6294 of the Revenue and Taxation
Code. The agreement shall specify the procedures agreed upon by the
department and the board for collection of the tax and the
reimbursement provided for in subdivision (c).
(d). The agreement shall be approved by the Department of
Finance.
(g) 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 vessel is registered.
SEC. 6. 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 a 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) (1) 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.
(2) Using the specific address data provided by the applicant and
to which the vehicle shall be registered, the department shall
identify the correct tax area code for the applicable local
jurisdiction to which the vehicle shall be registered and to which
the local use tax shall be allocated. The State Board of Equalization
shall provide a list of state tax area codes applicable to each
jurisdiction for purposes of allocating the local use taxes directly,
pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law
(Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue
and Taxation Code) and the Transactions and Use Tax Law (Part 1.6
(commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code).
(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.
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 Sales and Use
Tax Law for a refund of the amount 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.
(c) The department shall transmit all collections of use tax and
penalty made under this 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 the form that the department and board may prescribe.
(d) The State Board of Equalization shall reimburse the department
for its costs incurred in carrying out the provisions of this
section. The reimbursement shall be effected under agreement between
the agencies, approved by the Department of Finance.
(e) In computing any use tax or penalty under this section, dollar
fractions shall be disregarded in the manner specified in Section
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 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 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 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.