AB 43, as amended, Bocanegra. Sales and use taxes: claim for refund: customer refunds.
Under the Sales and Use Tax Law, any amount collected or paid in excess of what is due under that law is required to be credited by the State Board of Equalization against any other amounts due and payable from the person from whom the excess amount was collected or by whom it was paid, and the balance refunded to the person, as provided. Under existing law, when an amount represented by a person to a customer as constituting reimbursement for taxes due under the Sales and Use Tax Law is computed upon an amount that is not taxable or is in excess of the taxable amount and is actually paid by the customer to the person, the amount paid is required to be returned by the person to the customer upon notification by the board or by the customer that this excess has been ascertained.
This bill would authorize a person to make an irrevocable election to assign to the customer the right to receive the amount that would be refunded to the person, provided specified conditions are met, including that the amount be $50,000 or greater, and would authorize the board to make that payment to the customer.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 6901 of the Revenue and Taxation Code
2 is amended to read:
(a) If the board determines that any amount, penalty, or
4interest has been paid more than once or has been erroneously or
5illegally collected or computed, the board shall set forth that fact
6in the records of the board and shall certify the amount collected
7in excess of the amount legally due and the person from whom it
8was collected or by whom paid. The excess amount collected or
9paid shall be credited by the board on any amounts then due and
10payable from the person from whom the excess amount was
11collected or by whom it was paid under this part, and the balance
12shall be refunded to the person, or his or her successors,
13administrators, or executors, or customer as provided in subdivision
14(b), if a determination
by the board is made in any of the following
15cases:
16(1) Any amount of tax, interest, or penalty was not required to
17be paid.
18(2) Any amount of prepayment of sales tax, interest, or penalty
19paid pursuant to Article 1.5 (commencing with Section 6480) of
20Chapter 5 was not required to be paid.
21(3) Any amount that is approved as a settlement pursuant to
22Section 7093.5.
23(b) A person may make an irrevocable election to assign to the
24customer the right to receive the amount refunded if all of the
25following conditions are met:
26(1) The entire amount represents excess tax reimbursement that
27is
required to be paid by the person to a single customer under
28Section 6901.5.
29(2) The amount to be refunded is fifty thousand dollars ($50,000)
30or greater.
P3 1(3) The irrevocable election to assign to the customer the amount
2refunded is evidenced by a statement signed by the person and the
3customer authorizing the named customer to receive the amount
4refunded.
5(4) begin deleteThe end deletebegin insertNotwithstanding any other law, the end insertsigned statement is
6submitted to the board in conjunction with the person’sbegin insert or
7
customer’send insert claim for refund.
8(c) Any overpayment of the use tax by a purchaser to a retailer
9who is required to collect the tax and who gives the purchaser a
10receipt therefor pursuant to Article 1 (commencing with Section
116201) of Chapter 3 shall be credited or refunded by the state to the
12purchaser.
13(d) Any proposed determination by the board pursuant to this
14section with respect to an amount in excess of fifty thousand dollars
15($50,000) shall be available as a public record for at least 10 days
16prior to the effective date of that determination.
O
95