Sales and use taxes: administration: qualified use tax: acceptable tax return.

The Sales and Use Tax Law generally provides, for a transaction not subject to sales tax, that every person storing, using, or otherwise consuming in this state tangible personal property purchased from a retailer for storage, use, or other consumption in this state is liable for use tax, and must pay the use tax to the State Board of Equalization, unless that person has paid the use tax to a retailer registered to collect the tax. Existing law authorizes a person to make an irrevocable election to report qualified use tax, as defined, on that person's income tax return. Under existing law, any payments and credits shown on the return, together with any other credits associated with that person's account, of a person that elects to report qualified use tax on an acceptable tax return is applied first to taxes imposed under the Personal Income Tax Law or the Corporation Tax Law, including penalties and interest, and then to qualified use tax. This bill would instead require, of payments and credits shown on the return, together with any other credits associated with that person's tax year, of a person that reports qualified use tax on an acceptable tax return, an amount equal to the qualified use tax liability reported on that acceptable tax return be applied to that liability, as provided, for purchases of tangible personal property made in a taxable year beginning on or after January 1, 2015.