Bill Text: CA AB2681 | 2013-2014 | Regular Session | Chaptered
Bill Title: Sales and use tax: retail sale: storage use: counterfeit mark.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-09-19 - Chaptered by Secretary of State - Chapter 477, Statutes of 2014. [AB2681 Detail]
Download: California-2013-AB2681-Chaptered.html
BILL NUMBER: AB 2681 CHAPTERED
BILL TEXT
CHAPTER 477
FILED WITH SECRETARY OF STATE SEPTEMBER 19, 2014
APPROVED BY GOVERNOR SEPTEMBER 19, 2014
PASSED THE SENATE AUGUST 19, 2014
PASSED THE ASSEMBLY MAY 28, 2014
INTRODUCED BY Assembly Member Dababneh
FEBRUARY 21, 2014
An act to amend Section 6007 of, and to add Section 6009.2 to, the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2681, Dababneh. Sales and use tax: retail sale: storage use:
counterfeit mark.
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 any
retailer for storage, use, or other consumption in this state. Use
tax does not apply if the gross receipts from the sale of tangible
personal property are subject to sales tax.
For purposes of that law, a "retail sale" or "sale at retail"
means a sale for any purpose other than resale in the regular course
of business in the form of tangible personal property. For purposes
of that law, "storage" includes any keeping or retention of tangible
personal property in this state for any purpose except sale in the
regular course of business or subsequent use solely outside this
state, and "use" includes the exercise of any right or power over
tangible personal property incident to the ownership of that
property, except that it does not include the sale of that property
in the regular course of business.
This bill would provide that "retail sale" or "sale at retail"
also includes any sale by a convicted seller, as defined, of tangible
personal property with a counterfeit mark on, or in connection with,
that sale, regardless of whether the sale is for resale in the
regular course of business, as provided.
The bill would provide that "storage" or "use" also includes any
purchase by a convicted purchaser, as defined, of tangible personal
property with a counterfeit mark on, or in connection with, that
purchase, regardless of whether the purchase is for resale in the
regular course of business, as provided.
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 existing law authorizes
districts, as specified, to impose transactions and use taxes in
accordance with the Transactions and Use Law, which conforms to the
Sales and Use Tax Law. Amendments to state sales and use taxes are
incorporated into these laws.
The amendments made by this bill would be incorporated into these
laws.
This bill would include a change in state statute that would
result in a taxpayer paying a higher tax within the meaning of
Section 3 of Article XIII A of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.
This bill would take effect immediately as a tax levy.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6007 of the Revenue and Taxation Code is
amended to read:
6007. (a) (1) A "retail sale" or "sale at retail" means a sale
for any purpose other than resale in the regular course of business
in the form of tangible personal property.
(2) When tangible personal property is delivered by an owner or
former owner thereof, or by a factor or agent of that owner, former
owner, or factor to a consumer or to a person for redelivery to a
consumer, pursuant to a retail sale made by a retailer not engaged in
business in this state, the person making the delivery shall be
deemed the retailer of that property. He or she shall include the
retail selling price of the property in his or her gross receipts or
sales price.
(b) (1) Notwithstanding subdivision (a), a "retail sale" or "sale
at retail" shall include any sale by a convicted seller of tangible
personal property with a counterfeit mark on, or in connection with,
that sale, regardless of whether the sale is for resale in the
regular course of business.
(2) For purposes of this subdivision, all of the following shall
apply:
(A) A "convicted seller" means a person convicted of a violation
under Section 350 or 653w of the Penal Code or Section 2320 of Title
18 of the United States Code on or after the date of sale.
(B) "Counterfeit mark" has the same meaning as that term is
defined in Section 2320 of Title 18 of the United States Code.
(C) Chapter 5 (commencing with Section 17200) of Part 2 of
Division 7 of, and Article 1 (commencing with Section 17500) of
Chapter 1 of Part 3 of Division 7 of, the Business and Professions
Code, and Title 1.5 (commencing with Section 1750) of Part 4 of
Division 3 of the Civil Code shall not apply to any person other than
a convicted seller.
(D) Notwithstanding Article 2 (commencing with Section 6481) of
Chapter 5, any notice of deficiency determination to a convicted
seller shall be mailed within one year after the last day of the
calendar month following the date of conviction.
SEC. 2. Section 6009.2 is added to the Revenue and Taxation Code,
to read:
6009.2. (a) Notwithstanding Sections 6008, 6009, and 6009.1,
"storage" and "use" each shall include a purchase by a convicted
purchaser of tangible personal property with a counterfeit mark on,
or in connection with, that purchase, regardless of whether the
purchase is for resale in the regular course of business.
(b) "Convicted purchaser" means a person convicted of a violation
under Section 350 or 653w of the Penal Code or Section 2320 of Title
18 of the United States Code on or after the date of purchase.
(c) For purposes of this section, Chapter 5 (commencing with
Section 17200) of Part 2 of Division 7 of, and Article 1 (commencing
with Section 17500) of Chapter 1 of Part 3 of Division 7 of, the
Business and Professions Code, and Title 1.5 (commencing with Section
1750) of Part 4 of Division 3 of the Civil Code shall not apply to
any person other than a convicted seller.
(d) "Counterfeit mark" has the same meaning as that term is
defined in Section 2320 of Title 18 of the United States Code.
(e) Notwithstanding Article 2 (commencing with Section 6481) of
Chapter 5, any notice of deficiency determination to a convicted
purchaser shall be mailed within one year after the last day of the
calendar month following the date of conviction.
SEC. 3. It is the intent of the Legislature that any fine imposed
or restitution awarded pursuant to Section 350, 653w, or 1202.4 of
the Penal Code or Section 2320 of Title 18 of the United States Code
be satisfied prior to the collection of tax from convicted sellers or
convicted purchasers as defined in Sections 1 and 2 of this act.
SEC. 4. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
