BILL ANALYSIS �
AB 658
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Date of Hearing: January 9, 2012
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Henry T. Perea, Chair
AB 658 (Calderon) - As Amended: January 4, 2012
Majority vote. Fiscal committee.
SUBJECT : State Board of Equalization: administration of taxes.
SUMMARY : Corrects erroneous cross-references and makes other
non-substantive changes to specified provisions of the Cigarette
and Tobacco Products Tax Law.
EXISTING LAW :
1)Requires every person, retailer, and wholesaler engaged in
selling tangible personal property to remit the sales and use
tax to the Board of Equalization (BOE). If a final tax
liability is not paid when due, the BOE bills the taxpayer,
searches for the taxpayer's assets, and takes collection
actions to gain access to assets to satisfy the debt.
2)Authorizes BOE to accept and approve offers in compromise of a
final tax, surcharge or fee liability below certain amounts,
if certain requirements are satisfied. �Sales and Use Tax Law
(Revenue and Taxation Code (R&TC) Section 7093.6), Use Fuel
Tax Law (R&TC Section 9278), Cigarette and Tobacco Products
Tax Law (R&TC Section 30459.15), Alcoholic Beverage Tax Law
(R&TC Section 32471.5), Emergency Telephone Users Surcharge
Act (R&TC Section 41171.5), Oil Spill Response, Prevention,
and Administration Fees Law (R&TC Section 46628), Underground
Storage Tank Maintenance Fee Law (R&TC Section 50156.18), Fee
Collection Procedures Law (R&TC Section 55332.5), and Diesel
Fuel Tax Law (R&TC Section 60637].
3)Extends the BOE's offers-in-compromise program, until January
1, 2013, to businesses that have not been discontinued or
transferred, provided that the final tax liability arises from
transactions in which the taxpayer did not receive sales tax
reimbursement or use tax, to successors of businesses that may
have inherited tax liabilities of their predecessors, and to
consumers that have incurred a use tax liability.
AB 658
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4)Provides that, should the BOE determine that a taxpayer
concealed assets or falsified, withheld, destroyed, or
mutilated any book, document, or record relating to their
financial condition, the BOE may reestablish all compromised
liabilities and the taxpayer may be found guilty of a felony
and be may subject to a fine to $50,000, or imprisoned, or
both.
FISCAL EFFECT : None.
COMMENTS : In 2008, AB 2047 (Horton), Chapter 222, Statutes of
2008, amended the BOE's offers-in-compromise statutes to allow
the BOE to compromise, until January 1, 2013, certain final tax,
fee and surcharge liabilities of (a) businesses that are not
discontinued or transferred if the final tax liability arises
from transactions in which the taxpayer did not receive sales
tax reimbursement or use tax, (b) persons liable as successors,
or (c) consumers who incurred a use tax liability. AB 2047
contained the duplicative wording "or cigarette or tobacco
products tax reimbursement" in subdivision (c)(3)(A) of R&TC
Section 30459.15, and made an incorrect reference in that
section to paragraph (2) of subdivision (c) throughout
subdivisions (c), (f), and (g). In addition, AB 2047 added an
erroneous reference in R&TC Section 50156.18 to "Chapter 8 of
Article 2 (commencing with Section 50156)." Finally, as a
result of a printing error, a part of the phrase in subdivision
(l)(2) of RT&C Section 55332.5 was inadvertently deleted. This
bill would simply make non-substantive changes to R&TC Sections
30459.15 and 50156.18 in order to remove duplicative wording and
to correct erroneous references, and would add the missing
language to subdivision (l)(2) of R&TC Section 55332.5.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Oksana Jaffe / REV. & TAX. / (916)
319-2098
AB 658
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