AB 2676

Bill Subjects

Abstract

The Sales and Use Tax Law imposes a sales tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or a use tax 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. Every person storing, using, or otherwise consuming in this state tangible personal property purchased from a retailer is liable for the use tax and must pay the tax to the State Board of Equalization, unless he or she has paid the tax to a retailer registered to collect the use tax. Existing law requires retailers, as specified, to register with, and to obtain a seller's permit or certification of registration-use tax from, the State Board of Equalization. For taxable years beginning on or after January 1, 2003, and on December 31, 2009, persons not otherwise registered with the board may make an irrevocable election to report qualified use tax, as defined, on that person's income tax return. The Franchise Tax Board is required to revise the income tax returns to allow a person to report and remit qualified use taxes to it and to remit the qualified use taxes collected to the board. This bill would authorize an eligible person to make an irrevocable election to report qualified use tax, as defined, on that person's income tax return, for taxable years beginning on and after January 1, 2010, and would require the Franchise Tax Board to allow a person to report and remit qualified use taxes to it and to remit the qualified use taxes collected to the board. The Sales and Use Tax Law imposes personal liability for unpaid taxes, interest, and penalties on specified responsible persons who willfully fail to pay these amounts, upon the termination, dissolution, or abandonment of business of the corporation or other business entity, with the sum due to be collected by deficiency determination and collection in the manner provided under this law. This bill would also impose personal liability under the Sales and Use Tax Law for unpaid taxes, interest, and penalties on specified responsible persons who fail to pay these amounts during the time the rights, powers, and responsibilities of a closely held corporation or closely held limited liability company are suspended, as specified. This bill would additionally impose responsible person liability for unpaid taxes or fees, interest, and penalties on specified responsible persons who willfully fail to pay these amounts, upon the termination, dissolution, or abandonment of business of the corporation or other business entity, or who fail to pay these amounts during the time the rights, powers, and responsibilities of a closely held corporation or closely held limited liability company are suspended, as specified, under the Motor Vehicle Fuel Tax Law, Use Fuel Tax Law, Hazardous Substances Tax Law, Integrated Waste Management Fee Law, Oil Spill Response, Prevention, and Administration Fees Law, Fee Collection Procedures Law, and Diesel Fuel Tax Law. Existing law provides for the payment of unemployment compensation benefits to eligible unemployed individuals, and requires the Employment Development Department to implement and administer the unemployment insurance system in the state. Existing law requires each employer to file with the department a report of wages paid to his or her workers and to furnish to each employee a written statement showing, among other things, the total amount of wages, and total wages subject to personal income tax, as provided. Existing law also requires each employer to file with the department specified information on new employees, and authorizes the use of that information for specified purposes including, among other things, providing employer or employee information to the Franchise Tax Board for the purpose of tax enforcement. This bill would also authorize the Employment Development Department to provide employer or employee information to the State Board of Equalization with information for tax or fee enforcement.