AB 919, as amended, Williams. Sales and use taxes: veterans: itinerant vendors: repayment.
Existing sales and use tax laws impose 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 vendor, 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, 2016, require the board to certify to the Controller the amount of qualified repayments to be made to each qualified veteran, and wouldbegin delete requireend deletebegin insert
appropriate $50,000 from the General Fund toend insert thebegin delete Controller, upon appropriation by the Legislature,end deletebegin insert Controllerend insert 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.begin insert This bill would require the board to report to the Joint Legislative Budget Committee, the Assembly Committee on Revenue and Taxation, and the Senate Committee on Governance and Finance, the name of each qualified veteran who was issued a qualified repayment and the amount of the qualified repayment and would also require the board to report to the Controller the amount remaining, or that no amount remains, from the amount appropriated to
the Controller after making qualified repayments. This bill would require the Controller to transfer the amount, if any, reported to the Controller back to the General Fund.end insert
This bill would make findings regarding the public purpose served by the bill.
Vote: begin deletemajority end deletebegin insert2⁄3end insert.
Appropriation: begin deleteno end deletebegin insertyesend insert.
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 809 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
P3 1veterans relied upon Section 16102 of the Business and Professions
2Code, which exempts honorably discharged veterans from payment
3of any license, tax or fee whatsoever, for their sales of goods,
4wares, or merchandise owned by them (except alcoholic
5beverages), and as a
result, failed to pay sales tax or to collect sales
6tax reimbursement on their retail sales.
7(b) This uncertainty resulted in deficiency assessments by the
8State Board of Equalization against these veterans and subsequent
9payments to the board by these veterans of the tax, interest, and
10penalty for amounts that the board determined to be due.
11(c) For the public purpose of assuring equity in the payment of
12sales tax among qualified veterans for tangible personal property
13owned and sold by those veterans for one hundred dollars ($100)
14or less, excluding alcoholic beverages, it is the intent of the
15Legislature that the sales tax, interest, and any penalties paid by
16these veterans on those sales during the period on and after April
171, 2002, and before April 1, 2010, for which there was no
sales
18tax reimbursement collected from customers, be repaid in
19accordance with the provisions of this act.
Section 6018.2 is added to the Revenue and Taxation
21Code, to read:
(a) A qualified veteran may receive from the state a
23qualified repayment if all provisions of this section are satisfied.
24(b) The procedures set forth in this section shall be the procedure
25and remedy for the claims for a repayment of taxes, interest, or
26penalties paid by a qualified veteran under the Sales and Use Tax
27Law (Part 1 (commencing with Section 6001)), Section 35 of
28Article XIII of the California Constitution, local sales tax imposed
29in accordance with the Bradley-Burns Uniform Local Sales and
30Use Tax Law (Part 1.5 (commencing with Section 7200)), and
31local transactions and use taxes imposed in accordance with the
32Transactions and Use Tax Law (Part 1.6
(commencing with Section
337251)) during the eight-year period beginning on and after April
341, 2002, and before April 1, 2010.
35(c) (1) For purposes of this section, a “qualified veteran” means
36a person who meets all of the following requirements:
37(A) The person met the requirements of a qualified itinerant
38vendor as set forth in Section 6018.3 during the period in which
39the sales were made.
P4 1(B) The person paid to the board taxes imposed under the Sales
2and Use Tax Law (Part 1 (commencing with Section 6001)),
3Section 35 of Article XIII of the California Constitution, taxes
4imposed in accordance with the Bradley-Burns Uniform Local
5Sales and Use Tax Law (Part 1.5 (commencing with Section
6
7200)), and transactions and use taxes imposed in accordance with
7the Transactions and Use Tax Law (Part 1.6 (commencing with
8Section 7251)) during the period beginning April 1, 2002, and
9before April 1, 2010, for which no sales tax reimbursement was
10collected from customers, and also paid any interest or penalties
11associated with those tax liabilities.
12(2) “Qualified repayment” means an amount equal to the amount
13described in subparagraph (B) of paragraph (1), less any amounts
14previously refunded, credited, or paid to a qualified veteran through
15any means whatsoever.
16(d) (1) Before January 1, 2016, a qualified veteran may file a
17claim for a qualified repayment with the board.
18(2) The claim shall be in writing, and shall be completed in
19accordance with any instructions or regulations as the board may
20prescribe, including, but not limited to, proof of payment of the
21tax, interest, or penalties described in subparagraph (B) of
22paragraph (1) of subdivision (c).
23(3) On or before March 1, 2016, the board shall certify to the
24Controller the amount of qualified repayments to be made to each
25qualified veteran pursuant to this section. The total amount of
26money available to make qualified repayments shall not exceed
27fifty thousand dollars ($50,000). If the total amount of claims filed
28exceeds fifty thousand dollars ($50,000), the board shall determine
29the pro rata share due to each qualified veteran based on the
30proportion each claim bears to the total amount of claims and shall
31report that amount for
certification.
32(4) begin deleteUpon appropriation by the Legislature, the Controller shall end delete
33begin insertThere is hereby appropriated fifty thousand dollars ($50,000) from
34the General Fund to the Controller to end insertmake the payments of
35qualified repayments to qualified veterans.
36(5) No interest shall be paid on any qualified repayment made
37pursuant to this section.
38(6) (A) On or before May 1, 2016, the board shall report both
39of the following:
P5 1(i) To the Joint Legislative Budget Committee, the Assembly
2Committee on Revenue and Taxation, and the Senate Committee
3on Governance and Finance, the name of each qualified veteran
4who was issued a qualified repayment pursuant to this section and
5the amount of the qualified repayment.
6(ii) To the Controller, the amount remaining, or that no amount
7remains, from the amount appropriated to Controller pursuant to
8paragraph (4) after making qualified repayments.
9(B) The requirement for submitting a report imposed under
10subparagraph (A) is inoperative on May 1, 2020, pursuant to
11Section 10231.5 of the Government Code, and shall be submitted
12in compliance with Section 9795 of the Government Code.
13(7) The Controller shall transfer the amount, if any, reported
14to the Controller pursuant to clause (ii) of subparagraph (A) of
15paragraph (6), back to the General Fund.
The Legislature finds and declares that the addition of
17Section 6018.2 of the Revenue and Taxation Code by this act
18serves a public purpose, as described in Section 1 of this act, and
19does not constitute a gift of public funds within the meaning of
20Section 6 of Article XVI of the California Constitution.
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