Bill Text: CA AB2031 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Forest resources: timber assessment.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2014-09-29 - Chaptered by Secretary of State - Chapter 810, Statutes of 2014. [AB2031 Detail]

Download: California-2013-AB2031-Introduced.html

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BILL NUMBER: AB 2031	INTRODUCED
	BILL TEXT


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 introduced, 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 the
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.
   Under existing law, every retailer engaged in business in this
state and making sales of tangible personal property for storage,
use, or other consumption in this state is required to collect a "use
tax," is relieved from liability for this collection in cases in
which certain accounts are found to be worthless and are charged off
for income tax purposes, and is authorized to take certain income tax
deductions if the surcharge has been previously paid. Existing law
establishes similar procedures for an electric utility required to
collect a surcharge imposed on the consumption in this state of
electrical energy purchased from the electric utility.
   This bill would establish a similar procedure that would relieve a
retailer from liability to collect the assessment on the purchase of
lumber and wood products insofar as the measure of the assessment is
represented by a retail account that has been found to be worthless
and charged off for income tax purposes by the retailer or, if the
retailer is not required to file income tax returns, charged off in
accordance with generally accepted accounting principles. The bill
would authorize the retailer that has previously paid the assessment,
under rules and regulations adopted by the State Board of
Equalization, to take as a deduction on its income tax returns the
amount found worthless and charged off by the retailer, but would
require the payment of the assessment to the extent the retail
account is thereafter collected.
   This bill would, for purposes of all of the above provisions,
define "retailer" as one who has total sales of qualified lumber
products and engineered wood products of $25,000 or more during the
previous calendar year.
   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)  On and after January 1, 2013, there
  There  is hereby imposed an assessment on a
person who purchases a lumber product or an engineered wood product
for the 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)  (1)    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  the
provisions of  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  . 
   (2) A retailer is relieved from liability to collect the
assessment imposed by this section that became due and payable,
insofar as the base upon which the assessment is imposed is
represented by accounts that have been found to be worthless and
charged off for income tax purposes by the retailer or, if the
retailer is not required to file income tax returns, charged off in
accordance with generally accepted accounting principles. A retailer
that has previously paid the assessment may, under rules and
regulations prescribed the State Board of Equalization, take as a
deduction on its return the amount found worthless and charged off by
the retailer. If the retail account is thereafter, in whole or in
part, collected by the retailer, the amount collected shall be
included in the first return filed after the collection and the
assessment shall be paid with the return. 
   (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)  Every   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. 
Nothing in this part shall   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.
   (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) "Retailer"  has the same meaning   means
a retailer,  as that term is defined in Section 6015 of the
Revenue and Taxation Code  , who has   total sales of
qualified lumber products and engineered wood produ   cts of
twenty-five thousand dollars ($25,000) or more during the previous
calendar year  .
   (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)  Every   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 his or her
  the person's  place or places of business, and
 such   any other information  as
  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.