BILL NUMBER: AB 384	CHAPTERED  09/27/99

	CHAPTER   484
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 27, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 9, 1999
	PASSED THE SENATE   SEPTEMBER 7, 1999
	AMENDED IN SENATE   JULY 14, 1999
	AMENDED IN ASSEMBLY   APRIL 13, 1999

INTRODUCED BY   Assembly Member Jackson
   (Coauthors:  Assembly Members Aanestad, Calderon, Honda, Kuehl,
Leach, Longville, Machado, Wildman, and Zettel)
   (Coauthors:  Senators Baca, O'Connell, Rainey, and Solis)

                        FEBRUARY 11, 1999

   An act to amend Sections 6471, 6472, and 6477 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 384, Jackson.  Sales and use taxes:  prepayments.
   The Sales and Use Tax Law imposes a tax on the gross receipts from
the sale in this state of, or the storage, use, or other consumption
in this state of, tangible personal property.  That law provides
that, under specified circumstances, the State Board of Equalization
may require any person whose sales and use tax liability exceeds a
specified amount to prepay that tax liability.  Existing law provides
for a prepayment amount and due date for the first, third, and
fourth calendar quarters different than for the second calendar
quarter.
   This bill would revise the prepayment requirements for the 2nd
calendar quarter.  The bill would make related changes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 6471 of the Revenue and Taxation Code, as added
by Chapter 106 of the Statutes of 1985, is amended to read:
   6471.  (a) Upon written notification by the board, any person
whose estimated measure of tax liability under this part averages
seventeen thousand dollars ($17,000) or more per month, as determined
by the board, shall, without regard to the measure of tax in any one
month make prepayments as prescribed in this section.
   (1) In the first, third, and fourth calendar quarters, the person
shall prepay not less than 90 percent of the amount of state and
local tax liability for each of the first two monthly periods of each
quarterly period.
   (2) In the second calendar quarter, the person shall prepay a
first prepayment of 90 percent of the amount of state and local tax
liability for the first monthly period of each quarterly period and a
second prepayment of either of the following:
   (A) Ninety percent of the amount of state and local tax liability
for the second monthly period of the quarterly period, plus 90
percent of the amount of state and local tax liability for the first
15 days of the third monthly period of the quarterly period.
   (B) Ninety percent of the amount of state and local tax liability
for the second monthly period of the quarterly period, plus 50
percent of 90 percent of the amount of the liability for the second
monthly period of the quarterly period.
   (b) Persons engaged in their present business during all of the
corresponding quarterly period of the preceding year, or persons who
are successors to a business that was in operation during all of that
quarterly period, may satisfy the above monthly prepayment
requirements for the first, third, and fourth calendar quarters by
payment of an amount equal to one-third of the measure of tax
liability reported on the return or returns filed for that quarterly
period of the preceding year multiplied by the state and local tax
rate in effect during the month for which the prepayment is made.
   The persons may satisfy their prepayment requirements for the
second calendar quarter by making a first prepayment of an amount
equal to one-third of the measure of tax liability reported, and a
second prepayment of an amount equal to one-half of the measure of
tax liability reported, on the return or returns filed for that
quarterly period of the preceding year multiplied by the state and
local tax rate in effect during the month for which the prepayment is
made.
   Prepayments shall be made during the quarterly periods designated
by the board and during each succeeding quarterly period until
further notified in writing by the board.
  SEC. 2.  Section 6472 of the Revenue and Taxation Code is amended
to read:
   6472.  Except in the case of persons required to remit amounts due
in accordance with Article 1.2 (commencing with Section 6479.3), for
purposes of Section 6471, prepayment shall be accompanied by a
report of the amount of the prepayment in a form prescribed by the
board and shall be made to the board as follows:
   (a) In the first, third, and fourth calendar quarters, on or
before the 24th day next following the end of each of the first two
monthly periods of each quarterly period.
   (b) In the second calendar quarter as follows:
   (1) The first prepayment on or before the 24th day next following
the end of the first monthly period of each quarterly period.
   (2) The second prepayment on or before the 24th day of the third
monthly period of each quarterly period for the second monthly period
and the first 15 days of the third monthly period of each quarterly
period.
  SEC. 3.  Section 6477 of the Revenue and Taxation Code, as amended
by Section 5 of Chapter 337 of the Statutes of 1983, is amended to
read:
   6477.  Any person required to make a prepayment pursuant to
Section 6471 or Section 6471.5 who fails to make a prepayment before
the last day of the monthly period following the quarterly period in
which the prepayment became due and who files a timely return and
payment for the quarterly period in which the prepayment became due
shall pay a penalty of 6 percent of the amount equal to 90 percent of
the tax liability, as prescribed in those sections, for each of the
periods during that quarterly period for which a required prepayment
was not made.