SB 988

Bill Subjects

Abstract

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. Existing law requires a seller or person subject to sales and use tax to file, on or before the last day of the month following each quarterly period, a return for the preceding quarterly period. Existing law provides that if the California Department of Tax and Fee Administration (the department) finds that a person's failure to make a timely return or payment is due to reasonable cause and circumstances beyond the person's control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person shall be relieved of the penalties for failing to file a return. This bill would require an aviation fuel retailer to provide a quarterly information return, as specified, and would subject a retailer who fails to file that information return or who files an inaccurate information return to a penalty of $5,000. The bill would exempt from those penalties a person who fails to file a return or provides information or files an inaccurate return, if that person's failure is due to reasonable cause and circumstances beyond the person's control, notwithstanding the exercise of ordinary care and the absence of willful neglect. The bill would require the department to collect and disseminate, as specified, information from those information returns and calculate the amount of revenue collected from the sale, storage, use, or consumption of aviation fuel in the state. This bill would also require the department to report corresponding tax revenue information to local tax entities.