AB 919, as amended, Williams. Sales and use taxes: veterans: itinerant vendors: repayment.
Existing sales and use tax lawsbegin delete imposesend deletebegin insert imposeend insert a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, measured by sales price. That law, with certain exceptions, defines a retailer as a seller who makes any retail sale of tangible personal property and as a person who makes more than 2 retail sales of tangible personal property during any 12-month period, and defines a retail sale as a sale of tangible personal property for any purpose other than resale in the
regular course of business.
Existing law, from April 1, 2010, to January 1, 2022, provides that a qualified itinerant vendor, as defined, is a consumer, and not a retailer, of tangible personal property owned and sold by the qualified itinerant vendor, except for alcoholic beverages or items sold for more than $100, so that the retail sale subject to tax is the sale of tangible personal property to the qualified itinerant vendor and not the sale by the qualified itinerant vendor.
This bill would provide a procedure for a qualified veteran, who is a person who met specified requirements for being a qualified itinerant vendorbegin delete between April 1, 2002, and April 1, 2010end delete, to submit a claim for qualified repayments, as defined, with the State
Board of Equalization, as provided. This bill would, on or before March 1,begin delete 2015,end deletebegin insert
2016,end insert require the board to certify to the Controller the amount of qualified repayments to be made to each qualified veteran, and would require the State Controller, upon appropriation by the Legislature, to make the payments of qualified repayments. This bill would limit the total amount of money available to make qualified repayments to not more than $50,000.
This bill would make findings regarding the public purpose served by the bill.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares all of the
2following:
3(a) Prior to the enactment of Chapter 621 of the Statutes of 2009
4(Senate Bill 805 of the 2009-10 Regular Session), which became
5operative on April 1, 2010, there was considerable uncertainty
6among honorably discharged veterans with respect to their
7responsibilities under California’s Sales and Use Tax Law. These
8veterans relied upon Section 16102 of the Business and Professions
9Code that exempts honorably discharged veterans from payment
10ofbegin delete certain license taxes and feesend deletebegin insert
any license, tax or fee, whatsoever,end insert
11 for their sales of goods, wares, or merchandise owned by them
12(except alcoholic beverages), and as a result, failed to pay sales
13tax or to collect sales tax reimbursement on their retail sales.
14(b) This uncertainty resulted in deficiency assessments by the
15State Board of Equalization against these veterans and subsequent
16payments to the board by these veterans of the tax, interest, and
17penalty for amounts that the board determined to be due.
18(c) For the public purpose of assuring equity in the payment of
19sales tax among qualified veterans for tangible personal property
20owned and sold by those veterans for $100 or less, excluding
21alcoholic beverages, it is the intent of the Legislature that the sales
22tax, interest,
and any penalties paid by these veterans on those
23salesbegin delete forend deletebegin insert duringend insert the period on and after April 1, 2002, and before
P3 1April 1, 2010, for which there was no sales tax reimbursement
2collected from customers, be repaid in accordance with the
3provisions of this act.
Section 6018.2 is added to the Revenue and Taxation
5Code, to read:
(a) A qualified veteran may receive from the state, a
7qualified repayment if all provisions of this section are satisfied.
8(b) The procedures set forth in this section shall be the begin deleteexclusiveend delete
9 procedure and remedy for the claimsbegin delete for, or action for,end deletebegin insert forend insert a
10repayment of taxes, interest, or penalties paid by a qualified veteran
11under the Sales and Use Tax Law (Part 1 (commencing with
12Section 6001)), Section 35 of Article XIII of the
California
13Constitution, local sales tax imposed in accordance with the
14Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5
15(commencing with Section 7200)), and local transactions and use
16taxes imposed in accordance with the Transactions and Use Tax
17Law (Part 1.6 (commencing with Section 7251))begin delete forend deletebegin insert duringend insert the
18begin delete eight yearend deletebegin insert eight-yearend insert period beginning on and after April 1, 2002,
19and before April 1, 2010.
20(c) (1) For purposes of this section, a “qualified veteran” means
21a person
who meets all of the following requirements:
22(A) The person met the requirements of a qualified itinerant
23vendor as set forth in Section 6018.3begin delete, on and after April 1, 2002 begin insert during the period in which the sales were
24and before April 1, 2010end delete
25madeend insert.
26(B) The person paid to the board taxes imposed under the Sales
27and Use Tax Law (Part 1 (commencing with Section 6001)),
28Section 35 of Article XIII of the California Constitution,begin delete local begin insert taxesend insert
imposed in accordance with the Bradley-Burns
29sales taxend delete
30Uniform Local Sales and Use Tax Law (Part 1.5 (commencing
31with Section 7200)),begin delete or localend deletebegin insert
andend insert transactions and use taxes
32imposed in accordance with the Transactions and Use Tax Law
33(Part 1.6 (commencing with Section 7251))begin delete forend deletebegin insert
duringend insert
the period
34beginning April 1, 2002, and before April 1, 2010, for which no
35sales tax reimbursement was collected from customers, and also
36paid any interest or penalties associated with those tax liabilities.
37(2) “Qualified repayment” means an amount equal to the amount
38described in subparagraph (B) of paragraph (1).
39(d) (1) Before January 1,begin delete 2015,end deletebegin insert 2016,end insert a qualified veteran may
40file a claim for a qualified repayment with the board.
P4 1(2) The claim shall be in writing, and shall be completed in
2accordance with any
instructions or regulations as the board may
3prescribe, including, but not limited to, proof of payment of the
4tax, interest, or penalties described in subparagraph (B) of
5paragraph (1) of subdivision (c).
6(3) On or before March 1,begin delete 2015,end deletebegin insert 2016,end insert the board shall certify
7to the Controller the amount of qualified repayments to be made
8to each qualified veteran pursuant to this section. The total amount
9of money available to make qualified repayment shall not exceed
10fifty thousand dollars ($50,000). If the total amount of claims filed
11exceed fifty thousand dollars ($50,000), the board shall determine
12the pro rata share due to each qualified veteran based on the
13proportion
each claim bears to the total amount of claims and shall
14report that amount for certification.
15(4) Upon appropriation by the Legislature, the Controller shall
16make the payments of qualified repayments to qualified veterans.
17(5) No interest shall be paid on any qualified repayment made
18pursuant to this section.
The Legislature finds and declares that the addition of
20Section 6018.2 of the Revenue and Taxation Code by this act
21serves a public purpose, as described in Section 1 of this act, and
22does not constitute a gift of public funds within the meaning of
23Section 6 of Article XVI of the California Constitution.
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