Amended in Assembly May 6, 2014

Amended in Assembly April 21, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2031

Introduced by Assembly Member Dahle

February 20, 2014

An act to amend Section 4629.5 of the Public Resources Code, relating to forest resources.

LEGISLATIVE COUNSEL’S DIGEST

AB 2031, as amended, Dahle. Forest resources: timber assessment.

Existing law imposes an assessment on a person who purchases from a retailer a lumber product or an engineered wood product for storage, use, or other consumption in this state, at the rate of 1% of the sales price. Existing law requires the retailer, as defined according to existing tax laws, to charge the person the amount of the assessment as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the purchaser. Existing law requires the retailer to collect the assessment from the person at the time of sale, as provided.

This bill would, for purposes of the above provisions, exclude from the definition of “retailer” a retailer who has total sales of qualified lumber products and engineered wood products of less than begin delete $5,000 end delete begin insert $25,000 end insert during the previous calendar year. begin insert The bill would require an excluded retailer to provide a notice to the purchaser of the purchaser’s obligation to remit the assessment to the State Board of Equalization. end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 4629.5 of the Public Resources Code is
amended to read:

4629.5.  

(a) (1) There is hereby imposed an assessment on a
person who purchases a lumber product or an engineered wood
product for storage, use, or other consumption in this state, at the
rate of 1 percent of the sales price.

(2) A retailer shall charge the person the amount of the
assessment as a charge that is separate from, and not included in,
any other fee, charge, or other amount paid by the purchaser.

(3) The retailer shall collect the assessment from the person at
the time of sale, and may retain an amount equal to the amount of
reimbursement, as determined by the State Board of Equalization
pursuant to regulations, for any costs associated with the collection
of the assessment, to be taken on the first return or next consecutive
returns until the entire reimbursement amount is retained. For
purposes of this paragraph, the State Board of Equalization may
adopt emergency regulations pursuant to Section 11346.1 of the
Government Code. The adoption of any regulation pursuant to this
paragraph shall be deemed to be an emergency and necessary for
the immediate preservation of the public peace, health, and safety,
and general welfare.

(b) The retailer shall separately state the amount of the
assessment imposed under this section on the sales receipt given
by the retailer to the person at the time of sale.

(c) The State Board of Equalization shall administer and collect
the assessment imposed by this section pursuant to the Fee
Collection Procedures Law (Part 30 (commencing with Section
55001) of Division 2 of the Revenue and Taxation Code) with
those changes as may be necessary to conform to this article. For
purposes of this section, the references in the Fee Collection
Procedures Law to “fee” shall include the assessment imposed by
this section, and references to “feepayer” shall include a person
required to pay the assessment imposed by the article, which
includes the retailer.

(d) (1) The assessment is required to be collected by a retailer
and any amount unreturned to the person who paid an amount in
excess of the assessment, but was collected from the person under
the representation by the retailer that it was owed as an assessment,
constitutes debts owed by the retailer to this state.

(2) A person who purchases a lumber product or an engineered
wood product for storage, use, or other consumption in this state
is liable for the assessment until it has been paid to this state, except
that payment to a retailer relieves the person from further liability
for the assessment. Any assessment collected from a person that
has not been remitted to the State Board of Equalization shall be
a debt owed to the state by the retailer required to collect and remit
the assessment. This part does not impose any obligation upon a
retailer to take any legal action to enforce the collection of the
assessment imposed by this section.

begin insert

(3) An excluded retailer, as described in subparagraph (B) of
paragraph (2) of subdivision (g), shall provide a notice to a
purchaser of qualified lumber products or engineered wood
products regarding the purchaser’s obligation to remit the
assessment to the State Board of Equalization. Section 4601 does
not apply to this paragraph.

end insert

(e) Except as provided in paragraph (3) of subdivision (a), the
State Board of Equalization may prescribe, adopt, and enforce
regulations relating to the administration and enforcement of this
section, including, but not limited to, collections, reporting, refunds,
and appeals.

(f) (1) The assessment imposed by this section is due and
payable to the State Board of Equalization quarterly on or before
the last day of the month next succeeding each quarterly period.

(2) On or before the last day of the month following each
quarterly period, a return for the preceding quarterly period shall
be filed with the State Board of Equalization using electronic
media, in the form prescribed by the State Board of Equalization.
Returns shall be authenticated in a form or pursuant to methods,
as prescribed by the State Board of Equalization.

(g) For purposes of this section, all of the following shall apply:

(1) “Purchase” has the same meaning as that term is defined in
Section 6010 of the Revenue and Taxation Code.

(2)  begin insert (A) end insert begin insert   end insert “Retailer” means a retailer, as that term is defined in
Section 6015 of the Revenue and Taxation Code. begin delete A end delete

begin insert (B) end insert begin insert   end insert begin insert A end insert retailer with de minimis sales of qualified lumber products
and engineered wood products of less than begin delete five thousand dollars
($5,000) end delete begin insert twenty-five thousand dollars ($25,000) end insert during the previous
calendar year begin delete are end delete begin insert is end insert not begin delete retailers end delete begin insert a retailer end insert for purposes of this
section begin insert , except as provided in paragraph (3) of subdivision (d) end insert .

(3) “Sales price” has the same meaning as that term is defined
in Section 6011 of the Revenue and Taxation Code.

(4) “Storage” has the same meaning as that term is defined in
Section 6008 of the Revenue and Taxation Code.

(5) “Use” has the same meaning as that term is defined in
Section 6009 of the Revenue and Taxation Code.

(h) (1) A person required to pay the assessment imposed under
this article shall register with the State Board of Equalization.
Every application for registration shall be made in a form
prescribed by the State Board of Equalization and shall set forth
the name under which the applicant transacts or intends to transact
business, the location of the person’s place or places of business,
and any other information that the State Board of Equalization
may require. An application for registration shall be authenticated
in a form or pursuant to methods as may be prescribed by the State
Board of Equalization.

(2) An application for registration filed pursuant to this section
may be filed using electronic media as prescribed by the State
Board of Equalization.

(3) Electronic media includes, but is not limited to, computer
modem, magnetic media, optical disc, facsimile machine, or
telephone.