State Board of Equalization: administration.

The Sales and Use Tax Law imposes 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. That law provides that the place of sale or purchase is the place where the tangible personal property is physically located at the time the act constituting the sale or purchase takes place, with sales tax thereby being imposed on retail sales of tangible personal property physically located in this state at the time of sale. The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law and provides the methods of allocating those local sales and use taxes to a city or county. This bill would clarify that the place of sale or purchase of property for purposes of determining whether sales tax or use tax applies to the transaction is determined in the same manner under the Sales and Use Tax Law and the Bradley-Burns Uniform Local Sales and Use Tax Law, and would state that this provision is declaratory of existing law. Existing law provides that after January 1, 2007, and before January 1, 2013, the Cigarette and Tobacco Products Tax Law, Underground Storage Tank Maintenance Fee Law, and Fee Collection Procedures Law allow the State Board of Equalization to accept an offer in compromise on a final tax liability, as defined, imposed under or in accordance with those laws regardless of whether the liabilities are generated from a business, that has been discontinued or transferred or whether the taxpayer or feepayer has a controlling interest or association with a similar business as the transferred or discontinued business, as prescribed. Under these laws, a taxpayer or feepayer would be guilty of a felony if the taxpayer or feepayer conceals specified property or receives, withholds, destroys, mutilates, or falsifies specified items or makes a false statement related to the offer in compromise, as specified. This bill would extend the repeal date for the above provisions to January 1, 2018. The bill, by extending the repeal date, would expand an existing crime and, thus, impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.