6901. If the board determines that any amount, penalty, or interest
has been paid more than once or has been erroneously or illegally
collected or computed, the board shall set forth that fact in the
records of the board and shall certify the amount collected in excess
of the amount legally due and the person from whom it was collected
or by whom paid. The excess amount collected or paid shall be
credited by the board on any amounts then due and payable from the
person from whom the excess amount was collected or by whom it was
paid under this part, and the balance shall be refunded to the
person, or his or her successors, administrators, or executors, if a
determination by the board is made in any of the following cases:
(a) Any amount of tax, interest, or penalty was not required to be
paid.
(b) Any amount of prepayment of sales tax, interest, or penalty
paid pursuant to Article 1.5 (commencing with Section 6480) of
Chapter 5 was not required to be paid.
(c) Any amount that is approved as a settlement pursuant to
Section 7093.5.
Any overpayment of the use tax by a purchaser to a retailer who is
required to collect the tax and who gives the purchaser a receipt
therefor pursuant to Article 1 (commencing with Section 6201) of
Chapter 3 shall be credited or refunded by the state to the
purchaser. Any proposed determination by the board pursuant to this
section with respect to an amount in excess of fifty thousand dollars
($50,000) shall be available as a public record for at least 10 days
prior to the effective date of that determination.
6901.5. When an amount represented by a person to a customer as
constituting reimbursement for taxes due under this part is computed
upon an amount that is not taxable or is in excess of the taxable
amount and is actually paid by the customer to the person, the amount
so paid shall be returned by the person to the customer upon
notification by the Board of Equalization or by the customer that
such excess has been ascertained. In the event of his or her failure
or refusal to do so, the amount so paid, if knowingly or mistakenly
computed by the person upon an amount that is not taxable or is in
excess of the taxable amount, shall be remitted by that person to
this state. Notwithstanding subdivision (b) of Section 6904, those
amounts remitted to the state shall be credited by the board on any
amounts due and payable under this part on the same transaction from
the person by whom it was paid to this state and the balance, if any,
shall constitute an obligation due from the person to this state.
6902. (a) (1) For persons required to file returns on other than an
annual basis, except as provided in subdivision (b) no refund shall
be approved by the board after three years from the last day of the
month following the close of the quarterly period for which the
overpayment was made, or, with respect to determinations made under
Article 2 (commencing with Section 6481), Article 3 (commencing with
Section 6511), or Article 4 (commencing with Section 6536) of Chapter
5 of this part, after six months from the date the determinations
become final, or after six months from the date of overpayment,
whichever period expires the later, unless a claim therefor is filed
with the board within that period.
(2) For persons required to file returns on an annual basis,
except as provided in subdivision (b) no refund shall be approved by
the board after three years from the last day of the calendar month
following the one-year period for which the overpayment was made, or
with respect to determinations made under Article 2 (commencing with
Section 6481), Article 3 (commencing with Section 6511), or Article 4
(commencing with Section 6536) of Chapter 5, after six months from
the date the determinations become final, or after six months from
the date of overpayment, whichever period expires the later, unless a
claim therefor is filed with the board within that period. No credit
shall be approved by the board after the expiration of that period
unless a claim for credit is filed with the board within that period,
or unless the credit relates to a period for which a waiver is given
pursuant to Section 6488.
(b) A refund may be approved by the board for any period for which
a waiver is given under Section 6488 if a claim therefor is filed
with the board before the expiration of the period agreed upon.
6902.1. (a) Upon receipt of proof to its satisfaction that, in
connection with the sale, through a dealer and not on the dealer's
own account, of a used mobilehome on which the registration was
transferred during the period from January 1, 1977 to January 1,
1980, and on which use tax has been paid on items not part of a
mobilehome as a vehicle as set forth in Sections 6012.2 and 6276.1,
the State Board of Equalization shall refund such overpayment to the
purchaser of the mobilehome.
(b) Notwithstanding the provisions of Section 6902, any purchaser
entitled to a refund pursuant to subdivision (a) may file a claim for
refund until December 31, 1982.
6902.2. (a) (1) In lieu of claiming the credit allowed by Section
17053.49 or 23649, a person who has paid sales tax reimbursement to a
retailer or use tax on a purchase or purchases of property for which
a credit may be allowed pursuant to those sections, may file a claim
for refund equal to the credit amount that would otherwise be
allowed pursuant to those sections. Any claim so filed shall be
submitted to the board on a form prescribed by the board, shall be
filed no earlier than the date a claim could have been made for a tax
credit or carryover of a credit under Section 17053.49 or 23649,
whichever is applicable, and shall be for an amount not in excess of
the amount of the credit that could have been used to reduce the "net
tax," as defined in Section 17039, or the "tax," as defined in
Section 23036. Any credit carried over pursuant to Section 17053.49
or Section 23649 may not be refunded under this section until the
credit carried over could be applied to reduce the "net tax" (as
defined in Section 17039) or the "tax" (as defined in Section 23036),
as applicable. Under no circumstances may any claim for refund
exceed the "net tax," as defined by Section 17039, or the "tax," as
defined by Section 23036, after the allowance of any credits
authorized by Section 17039 or 23036. A claim for refund shall,
unless the sale or use of the property is otherwise exempt under this
part, be accompanied by proof of payment of the tax to a retailer,
including, but not limited to, a copy of an invoice or purchase
contract that indicates the following:
(A) The date on which the purchase occurred.
(B) A description of the property purchased.
(C) The price paid for the property.
(D) The amount of tax paid with respect to the purchase.
(2) In the case of a person who has self-reported use tax to the
board, the claim for refund shall also indicate the amount of use tax
paid and the period for which that tax was remitted.
(3) Any person who claims a refund under this section shall make
an irrevocable election to waive the equivalent amount of credit
allowed under Section 17053.49 or 23649. Any refund claimed under
this section shall be in lieu of claiming any credit under Section
17053.49 or 23649. Any person electing to file a claim for refund
pursuant to this section shall provide a copy of the personal or
corporation tax return on which the tax liability was assessed for
which the in-lieu refund is being claimed under this section.
(b) No interest shall be paid on any refund made pursuant to this
section.
(c) Notwithstanding Section 6961, the board may recover any refund
or part thereof that is erroneously made pursuant to this section.
In recovering any erroneous refund made pursuant to this section, the
board, in its discretion, may issue a deficiency determination in
accordance with Article 2 (commencing with Section 6481) or Article 4
(commencing with Section 6536) of Chapter 5. Except in the case of
fraud, that determination shall be made within three years from the
last day of the month following the quarterly period in which the
board approved the refund.
(d) The board shall provide an annual listing to the Franchise Tax
Board, in a form and manner agreed upon by the board and the
Franchise Tax Board, of the persons who during the year have claimed
a refund of sales or use tax under this section and the amount of the
refund issued to each person.
(e) Any refund approved by the board pursuant to this section
shall be payable from the General Fund.
6902.3. Notwithstanding Section 6902, a refund of an overpayment of
any tax, penalty, or interest collected by the board by means of
levy, through the use of liens, or by other enforcement procedures,
shall be approved if a claim for refund is filed within three years
of the date of overpayment.
6902.4. (a) The limitation period specified in Section 6902 shall
be suspended during any period of a person's life that the person is
financially disabled.
(b) (1) For purposes of subdivision (a), a person is financially
disabled if the person is unable to manage his or her financial
affairs by reason of medically determinable physical or mental
impairment of the person that can be expected to result in death or
that has lasted or can be expected to last for a continuous period of
not less than 12 months. A person shall not be considered to have an
impairment unless proof of the existence thereof is furnished in the
form and manner as the board may require.
(2) A person shall not be treated as financially disabled during
any period that the person's spouse or any other person is authorized
to act on behalf of the person in financial matters.
(c) This section applies to periods of disability commencing
before, on, or after the effective date of the act adding this
section, but does not apply to any claim for refund that, without
regard to this section, is barred by operation or rule of law,
including res judicata, as of the effective date of the act adding
this section.
6902.5. (a) For the purposes of this section:
(1) "Qualified taxpayer" means a person who is a qualified
taxpayer within the meaning of paragraph (17) of subdivision (b) of
Section 17053.85 or 23685.
(2) "Affiliate" means a qualified taxpayer's affiliated
corporation that has been assigned any portion of the credit amount
by the qualified taxpayer pursuant to subdivision (c) of Section
23685.
(3) "Credit amount" means an amount equal to the tax credit amount
that would otherwise be allowed to a qualified taxpayer pursuant to
Section 17053.85 or 23685 but for the election made pursuant to this
section.
(4) "Production period" means the production period as defined in
paragraph (12) of subdivision (b) of Section 17053.85 or 23685.
(5) (A) "Qualified sales and use taxes" means any state sales and
use taxes imposed by Part 1 (commencing with Section 6001), on the
operative date of the act adding this section.
(B) Notwithstanding subparagraph (A), "qualified sales and use
taxes" does not mean taxes imposed by Section 6051.2, 6051.5, 6201.2,
6201.5, Part 1.5 (commencing with Section 7200), Part 1.6
(commencing with Section 7251), or Section 35 of Article XIII of the
California Constitution.
(b) (1) A qualified taxpayer may, in lieu of claiming the credit
allowed by Section 17053.85 or 23685, make an irrevocable election to
apply the credit amount against qualified sales and use taxes
imposed on the qualified taxpayer in accordance with this section.
(2) An affiliate may, in lieu of claiming the assigned portion of
the credit allowed by Section 23685, make an irrevocable election to
apply the assigned portion of the credit amount against qualified
sales and use taxes imposed on the affiliate in accordance with this
section.
(c) (1) A qualified taxpayer or affiliate shall submit to the
board an irrevocable election, in a form as prescribed by the board,
which shall include, but not be limited to, the following
information:
(A) Representation that the claimant is a qualified taxpayer or an
affiliate.
(B) Statement of the dates on which the production period began
and ended.
(C) The credit amount, and if an affiliate, the portion of the
credit amount assigned to it and documentation supporting the
assignment of that portion of the credit amount.
(D) The amount of qualified sales and use taxes the claimant
remitted to the board during the period commencing on the first day
of the calendar quarter commencing immediately before the beginning
of the production period, and ending on the date the claimant was
required to file its most recent sales and use tax return with the
board.
(E) A copy of the credit certificate issued pursuant to
subparagraph (C) of paragraph (2) of subdivision (g) of Section
17053.85 or 23685.
(2) The election shall be filed on or before the date on which the
qualified taxpayer or affiliate would first be allowed to claim a
credit pursuant to Section 17053.85 or 23685 on its tax return.
(d) (1) The claimant may elect to obtain a refund of qualified
sales and use taxes paid during the period described in subparagraph
(D) of paragraph (1) of subdivision (c). If the claimant elects to
obtain a refund of qualified sales and use taxes, the claimant shall
file a claim for refund with the irrevocable election described in
subdivision (c). The refund amount shall not exceed, for a qualified
taxpayer, the credit amount, or for an affiliate, the portion of the
credit amount assigned to it.
(2) No interest shall be paid on any amount refunded or credited
pursuant to paragraph (1).
(e) If the claimant does not elect to obtain a refund or in the
case where the credit amount, or assigned portion, exceeds the amount
of its claim for refund for the qualified sales and use taxes, the
claimant may, for the reporting periods in the five years following
the last reporting period as described in subparagraph (D) of
paragraph (1) of subdivision (c), offset any remaining credit amount,
or assigned portion, against the qualified sales and use taxes
imposed during those reporting periods.
(f) Section 6961 shall apply to any refund, or part thereof, that
is erroneously made and any credit, or part thereof, that is
erroneously allowed pursuant to this section.
(g) The board shall provide an annual listing to the Franchise Tax
Board, in a form and manner agreed upon by the board and the
Franchise Tax Board, of the qualified taxpayers, or affiliates that
have been assigned a portion of the credit allowed under Section
23685 pursuant to subdivision (c) of Section 23685, who, during the
year, have made an irrevocable election pursuant to this section and
the credit amount, or portion of the credit amount, claimed by each
qualified taxpayer or affiliate.
(h) The board may prescribe rules and regulations for the
administration of this section.
6902.5. (a) For the purposes of this section:
(1) "Qualified taxpayer" means a person who is a qualified
taxpayer within the meaning of paragraph (17) of subdivision (b) of
Section 17053.85 or 23685.
(2) "Affiliate" means a qualified taxpayer's affiliated
corporation that has been assigned any portion of the credit amount
by the qualified taxpayer pursuant to subdivision (c) of Section
23685.
(3) "Credit amount" means an amount equal to the tax credit amount
that would otherwise be allowed to a qualified taxpayer pursuant to
Section 17053.85 or 23685 but for the election made pursuant to this
section.
(4) "Production period" means the production period as defined in
paragraph (12) of subdivision (b) of Section 17053.85 or 23685.
(5) (A) "Qualified sales and use taxes" means any state sales and
use taxes imposed by Part 1 (commencing with Section 6001), on the
operative date of the act adding this section.
(B) Notwithstanding subparagraph (A), "qualified sales and use
taxes" does not mean taxes imposed by Section 6051.2, 6051.5, 6201.2,
6201.5, Part 1.5 (commencing with Section 7200), Part 1.6
(commencing with Section 7251), or Section 35 of Article XIII of the
California Constitution.
(b) (1) A qualified taxpayer may, in lieu of claiming the credit
allowed by Section 17053.85 or 23685, make an irrevocable election to
apply the credit amount against qualified sales and use taxes
imposed on the qualified taxpayer in accordance with this section.
(2) An affiliate may, in lieu of claiming the assigned portion of
the credit allowed by Section 23685, make an irrevocable election to
apply the assigned portion of the credit amount against qualified
sales and use taxes imposed on the affiliate in accordance with this
section.
(c) (1) A qualified taxpayer or affiliate shall submit to the
board an irrevocable election, in a form as prescribed by the board,
which shall include, but not be limited to, the following
information:
(A) Representation that the claimant is a qualified taxpayer or an
affiliate.
(B) Statement of the dates on which the production period began
and ended.
(C) The credit amount, and if an affiliate, the portion of the
credit amount assigned to it and documentation supporting the
assignment of that portion of the credit amount.
(D) The amount of qualified sales and use taxes the claimant
remitted to the board during the period commencing on the first day
of the calendar quarter commencing immediately before the beginning
of the production period, and ending on the date the claimant was
required to file its most recent sales and use tax return with the
board.
(E) A copy of the credit certificate issued pursuant to
subparagraph (C) of paragraph (2) of subdivision (g) of Section
17053.85 or 23685.
(2) The election shall be filed on or before the date on which the
qualified taxpayer or affiliate would first be allowed to claim a
credit pursuant to Section 17053.85 or 23685 on its tax return.
(d) (1) The claimant may elect to obtain a refund of qualified
sales and use taxes paid during the period described in subparagraph
(D) of paragraph (1) of subdivision (c). If the claimant elects to
obtain a refund of qualified sales and use taxes, the claimant shall
file a claim for refund with the irrevocable election described in
subdivision (c). The refund amount shall not exceed, for a qualified
taxpayer, the credit amount, or for an affiliate, the portion of the
credit amount assigned to it.
(2) No interest shall be paid on any amount refunded or credited
pursuant to paragraph (1).
(e) If the claimant does not elect to obtain a refund or in the
case where the credit amount, or assigned portion, exceeds the amount
of its claim for refund for the qualified sales and use taxes, the
claimant may, for the reporting periods in the five years following
the last reporting period as described in subparagraph (D) of
paragraph (1) of subdivision (c), offset any remaining credit amount,
or assigned portion, against the qualified sales and use taxes
imposed during those reporting periods.
(f) Section 6961 shall apply to any refund, or part thereof, that
is erroneously made and any credit, or part thereof, that is
erroneously allowed pursuant to this section.
(g) The board shall provide an annual listing to the Franchise Tax
Board, in a form and manner agreed upon by the board and the
Franchise Tax Board, of the qualified taxpayers, or affiliates that
have been assigned a portion of the credit allowed under Section
23685 pursuant to subdivision (c) of Section 23685, who, during the
year, have made an irrevocable election pursuant to this section and
the credit amount, or portion of the credit amount, claimed by each
qualified taxpayer or affiliate.
(h) The board may prescribe rules and regulations for the
administration of this section.
6903. (a) No credit or refund of any amount paid pursuant to
Chapter 3 (commencing with Section 6201) shall be allowed to any
person on the ground that the storage, use, or other consumption of
the property is exempted under Section 6401 unless the person
establishes to the satisfaction of the board that his or her vendor
has paid the sales tax to the state with respect to the sale of the
property.
(b) For purposes of this section, "amount paid pursuant to Chapter
3 (commencing with Section 6201)" does not include any payment or
payments made pursuant to a determination made by the board under
Articles 2 (commencing with Section 6481) and 3 (commencing with
Section 6511) of Chapter 5.
6904. (a) Every claim shall be in writing and shall state the
specific grounds upon which the claim is founded.
(b) A claim filed for or on behalf of a class of taxpayers shall
do all of the following:
(1) Be accompanied by written authorization from each taxpayer
sought to be included in the class.
(2) Be signed by each taxpayer or taxpayer's authorized
representative.
(3) State the specific grounds on which the claim is founded.
6905. Failure to file a claim within the time prescribed in this
article constitutes a waiver of any demand against the State on
account of overpayment.
6906. Within 30 days after disallowing any claim in whole or in
part the board shall serve notice of its action on the claimant in
the manner prescribed for service of notice of a deficiency
determination.
6907. Interest shall be paid upon any overpayment of any amount of
tax at the modified adjusted rate per month established pursuant to
Section 6591.5, from the first day of the calendar month following
the month during which the overpayment was made. In addition, a
refund or credit shall be made of any interest imposed upon the
person making the overpayment with respect to the amount being
refunded or credited.
The interest shall be paid:
(a) In the case of a refund, to the last day of the calendar month
following the date upon which the person making the overpayment, if
he or she has not already filed a claim, is notified by the board
that a claim may be filed or the date upon which the claim is
approved by the board, whichever date is the earlier.
(b) In the case of a credit, to the same date as that to which
interest is computed on the tax or amount against which the credit is
applied.
6908. (a) If the board determines that any overpayment has been
made intentionally or by reason of carelessness, it shall not allow
any interest thereon.
(b) If any person who has filed a claim for refund requests the
board to defer action on the claim, the board, as a condition to
deferring action, may require the claimant to waive interest for the
period during which the person requests the board to defer action on
the claim.
6909. (a) The Controller shall transfer the amount of six hundred
sixty-five million two hundred sixty-one thousand dollars
($665,261,000) from the General Fund to the Smog Impact Fee Refund
Account, which is hereby created in the Special Deposit Fund.
(b) Notwithstanding Section 13340 of the Government Code, the
moneys in the Smog Impact Fee Refund Account in the Special Deposit
Fund are hereby continuously appropriated, without regard to fiscal
years, to the Department of Motor Vehicles for the purpose of making
refunds to persons who paid the smog impact fee formerly required by
Chapter 3.3 (commencing with Section 6261) upon registering a vehicle
in California. Each refund shall also include the amount of any
penalties incurred by the payer with respect to the fee, and shall
also include interest as specified in Sections 1673.2 and 1673.4 of
the Vehicle Code. In addition, the appropriate level of court costs,
fees, and expenses in the settlement of the case of Jordan v.
Department of Motor Vehicles (1999) 75 Cal.App.4th 449, shall be
determined through binding arbitration, and all of those fees, costs,
or expenses shall be paid with funds from the account.
(c) The amount of any refund made under Section 1673.2 or Section
1673.4 of the Vehicle Code that is returned to the Department of
Motor Vehicles because the recipient's mailing address as shown by
the records of the department is incorrect shall be retained in the
Smog Impact Fee Refund Account in the Special Deposit Fund until
either of the following occurs:
(1) The department is able to ascertain the correct address of the
recipient, at which time the refund shall be mailed to that address.
(2) The date upon which those funds are transferred from the Smog
Impact Fee Refund Account in the Special Deposit Fund back to the
General Fund.
(d) Any unencumbered balance remaining in the account on or after
June 30, 2004, shall revert to the General Fund.
(e) The Legislature hereby finds and declares that the amount
appropriated under subdivision (b) is a refund of taxes, as described
in subdivision (a) of Section 8 of Article XIII of the Constitution,
and, as a result, is not included within the "appropriations subject
to limitation" of the state, as defined in that subdivision (a).
6901. If the board determines that any amount, penalty, or interest
has been paid more than once or has been erroneously or illegally
collected or computed, the board shall set forth that fact in the
records of the board and shall certify the amount collected in excess
of the amount legally due and the person from whom it was collected
or by whom paid. The excess amount collected or paid shall be
credited by the board on any amounts then due and payable from the
person from whom the excess amount was collected or by whom it was
paid under this part, and the balance shall be refunded to the
person, or his or her successors, administrators, or executors, if a
determination by the board is made in any of the following cases:
(a) Any amount of tax, interest, or penalty was not required to be
paid.
(b) Any amount of prepayment of sales tax, interest, or penalty
paid pursuant to Article 1.5 (commencing with Section 6480) of
Chapter 5 was not required to be paid.
(c) Any amount that is approved as a settlement pursuant to
Section 7093.5.
Any overpayment of the use tax by a purchaser to a retailer who is
required to collect the tax and who gives the purchaser a receipt
therefor pursuant to Article 1 (commencing with Section 6201) of
Chapter 3 shall be credited or refunded by the state to the
purchaser. Any proposed determination by the board pursuant to this
section with respect to an amount in excess of fifty thousand dollars
($50,000) shall be available as a public record for at least 10 days
prior to the effective date of that determination.
6901.5. When an amount represented by a person to a customer as
constituting reimbursement for taxes due under this part is computed
upon an amount that is not taxable or is in excess of the taxable
amount and is actually paid by the customer to the person, the amount
so paid shall be returned by the person to the customer upon
notification by the Board of Equalization or by the customer that
such excess has been ascertained. In the event of his or her failure
or refusal to do so, the amount so paid, if knowingly or mistakenly
computed by the person upon an amount that is not taxable or is in
excess of the taxable amount, shall be remitted by that person to
this state. Notwithstanding subdivision (b) of Section 6904, those
amounts remitted to the state shall be credited by the board on any
amounts due and payable under this part on the same transaction from
the person by whom it was paid to this state and the balance, if any,
shall constitute an obligation due from the person to this state.
6902. (a) (1) For persons required to file returns on other than an
annual basis, except as provided in subdivision (b) no refund shall
be approved by the board after three years from the last day of the
month following the close of the quarterly period for which the
overpayment was made, or, with respect to determinations made under
Article 2 (commencing with Section 6481), Article 3 (commencing with
Section 6511), or Article 4 (commencing with Section 6536) of Chapter
5 of this part, after six months from the date the determinations
become final, or after six months from the date of overpayment,
whichever period expires the later, unless a claim therefor is filed
with the board within that period.
(2) For persons required to file returns on an annual basis,
except as provided in subdivision (b) no refund shall be approved by
the board after three years from the last day of the calendar month
following the one-year period for which the overpayment was made, or
with respect to determinations made under Article 2 (commencing with
Section 6481), Article 3 (commencing with Section 6511), or Article 4
(commencing with Section 6536) of Chapter 5, after six months from
the date the determinations become final, or after six months from
the date of overpayment, whichever period expires the later, unless a
claim therefor is filed with the board within that period. No credit
shall be approved by the board after the expiration of that period
unless a claim for credit is filed with the board within that period,
or unless the credit relates to a period for which a waiver is given
pursuant to Section 6488.
(b) A refund may be approved by the board for any period for which
a waiver is given under Section 6488 if a claim therefor is filed
with the board before the expiration of the period agreed upon.
6902.1. (a) Upon receipt of proof to its satisfaction that, in
connection with the sale, through a dealer and not on the dealer's
own account, of a used mobilehome on which the registration was
transferred during the period from January 1, 1977 to January 1,
1980, and on which use tax has been paid on items not part of a
mobilehome as a vehicle as set forth in Sections 6012.2 and 6276.1,
the State Board of Equalization shall refund such overpayment to the
purchaser of the mobilehome.
(b) Notwithstanding the provisions of Section 6902, any purchaser
entitled to a refund pursuant to subdivision (a) may file a claim for
refund until December 31, 1982.
6902.2. (a) (1) In lieu of claiming the credit allowed by Section
17053.49 or 23649, a person who has paid sales tax reimbursement to a
retailer or use tax on a purchase or purchases of property for which
a credit may be allowed pursuant to those sections, may file a claim
for refund equal to the credit amount that would otherwise be
allowed pursuant to those sections. Any claim so filed shall be
submitted to the board on a form prescribed by the board, shall be
filed no earlier than the date a claim could have been made for a tax
credit or carryover of a credit under Section 17053.49 or 23649,
whichever is applicable, and shall be for an amount not in excess of
the amount of the credit that could have been used to reduce the "net
tax," as defined in Section 17039, or the "tax," as defined in
Section 23036. Any credit carried over pursuant to Section 17053.49
or Section 23649 may not be refunded under this section until the
credit carried over could be applied to reduce the "net tax" (as
defined in Section 17039) or the "tax" (as defined in Section 23036),
as applicable. Under no circumstances may any claim for refund
exceed the "net tax," as defined by Section 17039, or the "tax," as
defined by Section 23036, after the allowance of any credits
authorized by Section 17039 or 23036. A claim for refund shall,
unless the sale or use of the property is otherwise exempt under this
part, be accompanied by proof of payment of the tax to a retailer,
including, but not limited to, a copy of an invoice or purchase
contract that indicates the following:
(A) The date on which the purchase occurred.
(B) A description of the property purchased.
(C) The price paid for the property.
(D) The amount of tax paid with respect to the purchase.
(2) In the case of a person who has self-reported use tax to the
board, the claim for refund shall also indicate the amount of use tax
paid and the period for which that tax was remitted.
(3) Any person who claims a refund under this section shall make
an irrevocable election to waive the equivalent amount of credit
allowed under Section 17053.49 or 23649. Any refund claimed under
this section shall be in lieu of claiming any credit under Section
17053.49 or 23649. Any person electing to file a claim for refund
pursuant to this section shall provide a copy of the personal or
corporation tax return on which the tax liability was assessed for
which the in-lieu refund is being claimed under this section.
(b) No interest shall be paid on any refund made pursuant to this
section.
(c) Notwithstanding Section 6961, the board may recover any refund
or part thereof that is erroneously made pursuant to this section.
In recovering any erroneous refund made pursuant to this section, the
board, in its discretion, may issue a deficiency determination in
accordance with Article 2 (commencing with Section 6481) or Article 4
(commencing with Section 6536) of Chapter 5. Except in the case of
fraud, that determination shall be made within three years from the
last day of the month following the quarterly period in which the
board approved the refund.
(d) The board shall provide an annual listing to the Franchise Tax
Board, in a form and manner agreed upon by the board and the
Franchise Tax Board, of the persons who during the year have claimed
a refund of sales or use tax under this section and the amount of the
refund issued to each person.
(e) Any refund approved by the board pursuant to this section
shall be payable from the General Fund.
6902.3. Notwithstanding Section 6902, a refund of an overpayment of
any tax, penalty, or interest collected by the board by means of
levy, through the use of liens, or by other enforcement procedures,
shall be approved if a claim for refund is filed within three years
of the date of overpayment.
6902.4. (a) The limitation period specified in Section 6902 shall
be suspended during any period of a person's life that the person is
financially disabled.
(b) (1) For purposes of subdivision (a), a person is financially
disabled if the person is unable to manage his or her financial
affairs by reason of medically determinable physical or mental
impairment of the person that can be expected to result in death or
that has lasted or can be expected to last for a continuous period of
not less than 12 months. A person shall not be considered to have an
impairment unless proof of the existence thereof is furnished in the
form and manner as the board may require.
(2) A person shall not be treated as financially disabled during
any period that the person's spouse or any other person is authorized
to act on behalf of the person in financial matters.
(c) This section applies to periods of disability commencing
before, on, or after the effective date of the act adding this
section, but does not apply to any claim for refund that, without
regard to this section, is barred by operation or rule of law,
including res judicata, as of the effective date of the act adding
this section.
6902.5. (a) For the purposes of this section:
(1) "Qualified taxpayer" means a person who is a qualified
taxpayer within the meaning of paragraph (17) of subdivision (b) of
Section 17053.85 or 23685.
(2) "Affiliate" means a qualified taxpayer's affiliated
corporation that has been assigned any portion of the credit amount
by the qualified taxpayer pursuant to subdivision (c) of Section
23685.
(3) "Credit amount" means an amount equal to the tax credit amount
that would otherwise be allowed to a qualified taxpayer pursuant to
Section 17053.85 or 23685 but for the election made pursuant to this
section.
(4) "Production period" means the production period as defined in
paragraph (12) of subdivision (b) of Section 17053.85 or 23685.
(5) (A) "Qualified sales and use taxes" means any state sales and
use taxes imposed by Part 1 (commencing with Section 6001), on the
operative date of the act adding this section.
(B) Notwithstanding subparagraph (A), "qualified sales and use
taxes" does not mean taxes imposed by Section 6051.2, 6051.5, 6201.2,
6201.5, Part 1.5 (commencing with Section 7200), Part 1.6
(commencing with Section 7251), or Section 35 of Article XIII of the
California Constitution.
(b) (1) A qualified taxpayer may, in lieu of claiming the credit
allowed by Section 17053.85 or 23685, make an irrevocable election to
apply the credit amount against qualified sales and use taxes
imposed on the qualified taxpayer in accordance with this section.
(2) An affiliate may, in lieu of claiming the assigned portion of
the credit allowed by Section 23685, make an irrevocable election to
apply the assigned portion of the credit amount against qualified
sales and use taxes imposed on the affiliate in accordance with this
section.
(c) (1) A qualified taxpayer or affiliate shall submit to the
board an irrevocable election, in a form as prescribed by the board,
which shall include, but not be limited to, the following
information:
(A) Representation that the claimant is a qualified taxpayer or an
affiliate.
(B) Statement of the dates on which the production period began
and ended.
(C) The credit amount, and if an affiliate, the portion of the
credit amount assigned to it and documentation supporting the
assignment of that portion of the credit amount.
(D) The amount of qualified sales and use taxes the claimant
remitted to the board during the period commencing on the first day
of the calendar quarter commencing immediately before the beginning
of the production period, and ending on the date the claimant was
required to file its most recent sales and use tax return with the
board.
(E) A copy of the credit certificate issued pursuant to
subparagraph (C) of paragraph (2) of subdivision (g) of Section
17053.85 or 23685.
(2) The election shall be filed on or before the date on which the
qualified taxpayer or affiliate would first be allowed to claim a
credit pursuant to Section 17053.85 or 23685 on its tax return.
(d) (1) The claimant may elect to obtain a refund of qualified
sales and use taxes paid during the period described in subparagraph
(D) of paragraph (1) of subdivision (c). If the claimant elects to
obtain a refund of qualified sales and use taxes, the claimant shall
file a claim for refund with the irrevocable election described in
subdivision (c). The refund amount shall not exceed, for a qualified
taxpayer, the credit amount, or for an affiliate, the portion of the
credit amount assigned to it.
(2) No interest shall be paid on any amount refunded or credited
pursuant to paragraph (1).
(e) If the claimant does not elect to obtain a refund or in the
case where the credit amount, or assigned portion, exceeds the amount
of its claim for refund for the qualified sales and use taxes, the
claimant may, for the reporting periods in the five years following
the last reporting period as described in subparagraph (D) of
paragraph (1) of subdivision (c), offset any remaining credit amount,
or assigned portion, against the qualified sales and use taxes
imposed during those reporting periods.
(f) Section 6961 shall apply to any refund, or part thereof, that
is erroneously made and any credit, or part thereof, that is
erroneously allowed pursuant to this section.
(g) The board shall provide an annual listing to the Franchise Tax
Board, in a form and manner agreed upon by the board and the
Franchise Tax Board, of the qualified taxpayers, or affiliates that
have been assigned a portion of the credit allowed under Section
23685 pursuant to subdivision (c) of Section 23685, who, during the
year, have made an irrevocable election pursuant to this section and
the credit amount, or portion of the credit amount, claimed by each
qualified taxpayer or affiliate.
(h) The board may prescribe rules and regulations for the
administration of this section.
6902.5. (a) For the purposes of this section:
(1) "Qualified taxpayer" means a person who is a qualified
taxpayer within the meaning of paragraph (17) of subdivision (b) of
Section 17053.85 or 23685.
(2) "Affiliate" means a qualified taxpayer's affiliated
corporation that has been assigned any portion of the credit amount
by the qualified taxpayer pursuant to subdivision (c) of Section
23685.
(3) "Credit amount" means an amount equal to the tax credit amount
that would otherwise be allowed to a qualified taxpayer pursuant to
Section 17053.85 or 23685 but for the election made pursuant to this
section.
(4) "Production period" means the production period as defined in
paragraph (12) of subdivision (b) of Section 17053.85 or 23685.
(5) (A) "Qualified sales and use taxes" means any state sales and
use taxes imposed by Part 1 (commencing with Section 6001), on the
operative date of the act adding this section.
(B) Notwithstanding subparagraph (A), "qualified sales and use
taxes" does not mean taxes imposed by Section 6051.2, 6051.5, 6201.2,
6201.5, Part 1.5 (commencing with Section 7200), Part 1.6
(commencing with Section 7251), or Section 35 of Article XIII of the
California Constitution.
(b) (1) A qualified taxpayer may, in lieu of claiming the credit
allowed by Section 17053.85 or 23685, make an irrevocable election to
apply the credit amount against qualified sales and use taxes
imposed on the qualified taxpayer in accordance with this section.
(2) An affiliate may, in lieu of claiming the assigned portion of
the credit allowed by Section 23685, make an irrevocable election to
apply the assigned portion of the credit amount against qualified
sales and use taxes imposed on the affiliate in accordance with this
section.
(c) (1) A qualified taxpayer or affiliate shall submit to the
board an irrevocable election, in a form as prescribed by the board,
which shall include, but not be limited to, the following
information:
(A) Representation that the claimant is a qualified taxpayer or an
affiliate.
(B) Statement of the dates on which the production period began
and ended.
(C) The credit amount, and if an affiliate, the portion of the
credit amount assigned to it and documentation supporting the
assignment of that portion of the credit amount.
(D) The amount of qualified sales and use taxes the claimant
remitted to the board during the period commencing on the first day
of the calendar quarter commencing immediately before the beginning
of the production period, and ending on the date the claimant was
required to file its most recent sales and use tax return with the
board.
(E) A copy of the credit certificate issued pursuant to
subparagraph (C) of paragraph (2) of subdivision (g) of Section
17053.85 or 23685.
(2) The election shall be filed on or before the date on which the
qualified taxpayer or affiliate would first be allowed to claim a
credit pursuant to Section 17053.85 or 23685 on its tax return.
(d) (1) The claimant may elect to obtain a refund of qualified
sales and use taxes paid during the period described in subparagraph
(D) of paragraph (1) of subdivision (c). If the claimant elects to
obtain a refund of qualified sales and use taxes, the claimant shall
file a claim for refund with the irrevocable election described in
subdivision (c). The refund amount shall not exceed, for a qualified
taxpayer, the credit amount, or for an affiliate, the portion of the
credit amount assigned to it.
(2) No interest shall be paid on any amount refunded or credited
pursuant to paragraph (1).
(e) If the claimant does not elect to obtain a refund or in the
case where the credit amount, or assigned portion, exceeds the amount
of its claim for refund for the qualified sales and use taxes, the
claimant may, for the reporting periods in the five years following
the last reporting period as described in subparagraph (D) of
paragraph (1) of subdivision (c), offset any remaining credit amount,
or assigned portion, against the qualified sales and use taxes
imposed during those reporting periods.
(f) Section 6961 shall apply to any refund, or part thereof, that
is erroneously made and any credit, or part thereof, that is
erroneously allowed pursuant to this section.
(g) The board shall provide an annual listing to the Franchise Tax
Board, in a form and manner agreed upon by the board and the
Franchise Tax Board, of the qualified taxpayers, or affiliates that
have been assigned a portion of the credit allowed under Section
23685 pursuant to subdivision (c) of Section 23685, who, during the
year, have made an irrevocable election pursuant to this section and
the credit amount, or portion of the credit amount, claimed by each
qualified taxpayer or affiliate.
(h) The board may prescribe rules and regulations for the
administration of this section.
6903. (a) No credit or refund of any amount paid pursuant to
Chapter 3 (commencing with Section 6201) shall be allowed to any
person on the ground that the storage, use, or other consumption of
the property is exempted under Section 6401 unless the person
establishes to the satisfaction of the board that his or her vendor
has paid the sales tax to the state with respect to the sale of the
property.
(b) For purposes of this section, "amount paid pursuant to Chapter
3 (commencing with Section 6201)" does not include any payment or
payments made pursuant to a determination made by the board under
Articles 2 (commencing with Section 6481) and 3 (commencing with
Section 6511) of Chapter 5.
6904. (a) Every claim shall be in writing and shall state the
specific grounds upon which the claim is founded.
(b) A claim filed for or on behalf of a class of taxpayers shall
do all of the following:
(1) Be accompanied by written authorization from each taxpayer
sought to be included in the class.
(2) Be signed by each taxpayer or taxpayer's authorized
representative.
(3) State the specific grounds on which the claim is founded.
6905. Failure to file a claim within the time prescribed in this
article constitutes a waiver of any demand against the State on
account of overpayment.
6906. Within 30 days after disallowing any claim in whole or in
part the board shall serve notice of its action on the claimant in
the manner prescribed for service of notice of a deficiency
determination.
6907. Interest shall be paid upon any overpayment of any amount of
tax at the modified adjusted rate per month established pursuant to
Section 6591.5, from the first day of the calendar month following
the month during which the overpayment was made. In addition, a
refund or credit shall be made of any interest imposed upon the
person making the overpayment with respect to the amount being
refunded or credited.
The interest shall be paid:
(a) In the case of a refund, to the last day of the calendar month
following the date upon which the person making the overpayment, if
he or she has not already filed a claim, is notified by the board
that a claim may be filed or the date upon which the claim is
approved by the board, whichever date is the earlier.
(b) In the case of a credit, to the same date as that to which
interest is computed on the tax or amount against which the credit is
applied.
6908. (a) If the board determines that any overpayment has been
made intentionally or by reason of carelessness, it shall not allow
any interest thereon.
(b) If any person who has filed a claim for refund requests the
board to defer action on the claim, the board, as a condition to
deferring action, may require the claimant to waive interest for the
period during which the person requests the board to defer action on
the claim.
6909. (a) The Controller shall transfer the amount of six hundred
sixty-five million two hundred sixty-one thousand dollars
($665,261,000) from the General Fund to the Smog Impact Fee Refund
Account, which is hereby created in the Special Deposit Fund.
(b) Notwithstanding Section 13340 of the Government Code, the
moneys in the Smog Impact Fee Refund Account in the Special Deposit
Fund are hereby continuously appropriated, without regard to fiscal
years, to the Department of Motor Vehicles for the purpose of making
refunds to persons who paid the smog impact fee formerly required by
Chapter 3.3 (commencing with Section 6261) upon registering a vehicle
in California. Each refund shall also include the amount of any
penalties incurred by the payer with respect to the fee, and shall
also include interest as specified in Sections 1673.2 and 1673.4 of
the Vehicle Code. In addition, the appropriate level of court costs,
fees, and expenses in the settlement of the case of Jordan v.
Department of Motor Vehicles (1999) 75 Cal.App.4th 449, shall be
determined through binding arbitration, and all of those fees, costs,
or expenses shall be paid with funds from the account.
(c) The amount of any refund made under Section 1673.2 or Section
1673.4 of the Vehicle Code that is returned to the Department of
Motor Vehicles because the recipient's mailing address as shown by
the records of the department is incorrect shall be retained in the
Smog Impact Fee Refund Account in the Special Deposit Fund until
either of the following occurs:
(1) The department is able to ascertain the correct address of the
recipient, at which time the refund shall be mailed to that address.
(2) The date upon which those funds are transferred from the Smog
Impact Fee Refund Account in the Special Deposit Fund back to the
General Fund.
(d) Any unencumbered balance remaining in the account on or after
June 30, 2004, shall revert to the General Fund.
(e) The Legislature hereby finds and declares that the amount
appropriated under subdivision (b) is a refund of taxes, as described
in subdivision (a) of Section 8 of Article XIII of the Constitution,
and, as a result, is not included within the "appropriations subject
to limitation" of the state, as defined in that subdivision (a).
6901. If the board determines that any amount, penalty, or interest
has been paid more than once or has been erroneously or illegally
collected or computed, the board shall set forth that fact in the
records of the board and shall certify the amount collected in excess
of the amount legally due and the person from whom it was collected
or by whom paid. The excess amount collected or paid shall be
credited by the board on any amounts then due and payable from the
person from whom the excess amount was collected or by whom it was
paid under this part, and the balance shall be refunded to the
person, or his or her successors, administrators, or executors, if a
determination by the board is made in any of the following cases:
(a) Any amount of tax, interest, or penalty was not required to be
paid.
(b) Any amount of prepayment of sales tax, interest, or penalty
paid pursuant to Article 1.5 (commencing with Section 6480) of
Chapter 5 was not required to be paid.
(c) Any amount that is approved as a settlement pursuant to
Section 7093.5.
Any overpayment of the use tax by a purchaser to a retailer who is
required to collect the tax and who gives the purchaser a receipt
therefor pursuant to Article 1 (commencing with Section 6201) of
Chapter 3 shall be credited or refunded by the state to the
purchaser. Any proposed determination by the board pursuant to this
section with respect to an amount in excess of fifty thousand dollars
($50,000) shall be available as a public record for at least 10 days
prior to the effective date of that determination.
6901.5. When an amount represented by a person to a customer as
constituting reimbursement for taxes due under this part is computed
upon an amount that is not taxable or is in excess of the taxable
amount and is actually paid by the customer to the person, the amount
so paid shall be returned by the person to the customer upon
notification by the Board of Equalization or by the customer that
such excess has been ascertained. In the event of his or her failure
or refusal to do so, the amount so paid, if knowingly or mistakenly
computed by the person upon an amount that is not taxable or is in
excess of the taxable amount, shall be remitted by that person to
this state. Notwithstanding subdivision (b) of Section 6904, those
amounts remitted to the state shall be credited by the board on any
amounts due and payable under this part on the same transaction from
the person by whom it was paid to this state and the balance, if any,
shall constitute an obligation due from the person to this state.
6902. (a) (1) For persons required to file returns on other than an
annual basis, except as provided in subdivision (b) no refund shall
be approved by the board after three years from the last day of the
month following the close of the quarterly period for which the
overpayment was made, or, with respect to determinations made under
Article 2 (commencing with Section 6481), Article 3 (commencing with
Section 6511), or Article 4 (commencing with Section 6536) of Chapter
5 of this part, after six months from the date the determinations
become final, or after six months from the date of overpayment,
whichever period expires the later, unless a claim therefor is filed
with the board within that period.
(2) For persons required to file returns on an annual basis,
except as provided in subdivision (b) no refund shall be approved by
the board after three years from the last day of the calendar month
following the one-year period for which the overpayment was made, or
with respect to determinations made under Article 2 (commencing with
Section 6481), Article 3 (commencing with Section 6511), or Article 4
(commencing with Section 6536) of Chapter 5, after six months from
the date the determinations become final, or after six months from
the date of overpayment, whichever period expires the later, unless a
claim therefor is filed with the board within that period. No credit
shall be approved by the board after the expiration of that period
unless a claim for credit is filed with the board within that period,
or unless the credit relates to a period for which a waiver is given
pursuant to Section 6488.
(b) A refund may be approved by the board for any period for which
a waiver is given under Section 6488 if a claim therefor is filed
with the board before the expiration of the period agreed upon.
6902.1. (a) Upon receipt of proof to its satisfaction that, in
connection with the sale, through a dealer and not on the dealer's
own account, of a used mobilehome on which the registration was
transferred during the period from January 1, 1977 to January 1,
1980, and on which use tax has been paid on items not part of a
mobilehome as a vehicle as set forth in Sections 6012.2 and 6276.1,
the State Board of Equalization shall refund such overpayment to the
purchaser of the mobilehome.
(b) Notwithstanding the provisions of Section 6902, any purchaser
entitled to a refund pursuant to subdivision (a) may file a claim for
refund until December 31, 1982.
6902.2. (a) (1) In lieu of claiming the credit allowed by Section
17053.49 or 23649, a person who has paid sales tax reimbursement to a
retailer or use tax on a purchase or purchases of property for which
a credit may be allowed pursuant to those sections, may file a claim
for refund equal to the credit amount that would otherwise be
allowed pursuant to those sections. Any claim so filed shall be
submitted to the board on a form prescribed by the board, shall be
filed no earlier than the date a claim could have been made for a tax
credit or carryover of a credit under Section 17053.49 or 23649,
whichever is applicable, and shall be for an amount not in excess of
the amount of the credit that could have been used to reduce the "net
tax," as defined in Section 17039, or the "tax," as defined in
Section 23036. Any credit carried over pursuant to Section 17053.49
or Section 23649 may not be refunded under this section until the
credit carried over could be applied to reduce the "net tax" (as
defined in Section 17039) or the "tax" (as defined in Section 23036),
as applicable. Under no circumstances may any claim for refund
exceed the "net tax," as defined by Section 17039, or the "tax," as
defined by Section 23036, after the allowance of any credits
authorized by Section 17039 or 23036. A claim for refund shall,
unless the sale or use of the property is otherwise exempt under this
part, be accompanied by proof of payment of the tax to a retailer,
including, but not limited to, a copy of an invoice or purchase
contract that indicates the following:
(A) The date on which the purchase occurred.
(B) A description of the property purchased.
(C) The price paid for the property.
(D) The amount of tax paid with respect to the purchase.
(2) In the case of a person who has self-reported use tax to the
board, the claim for refund shall also indicate the amount of use tax
paid and the period for which that tax was remitted.
(3) Any person who claims a refund under this section shall make
an irrevocable election to waive the equivalent amount of credit
allowed under Section 17053.49 or 23649. Any refund claimed under
this section shall be in lieu of claiming any credit under Section
17053.49 or 23649. Any person electing to file a claim for refund
pursuant to this section shall provide a copy of the personal or
corporation tax return on which the tax liability was assessed for
which the in-lieu refund is being claimed under this section.
(b) No interest shall be paid on any refund made pursuant to this
section.
(c) Notwithstanding Section 6961, the board may recover any refund
or part thereof that is erroneously made pursuant to this section.
In recovering any erroneous refund made pursuant to this section, the
board, in its discretion, may issue a deficiency determination in
accordance with Article 2 (commencing with Section 6481) or Article 4
(commencing with Section 6536) of Chapter 5. Except in the case of
fraud, that determination shall be made within three years from the
last day of the month following the quarterly period in which the
board approved the refund.
(d) The board shall provide an annual listing to the Franchise Tax
Board, in a form and manner agreed upon by the board and the
Franchise Tax Board, of the persons who during the year have claimed
a refund of sales or use tax under this section and the amount of the
refund issued to each person.
(e) Any refund approved by the board pursuant to this section
shall be payable from the General Fund.
6902.3. Notwithstanding Section 6902, a refund of an overpayment of
any tax, penalty, or interest collected by the board by means of
levy, through the use of liens, or by other enforcement procedures,
shall be approved if a claim for refund is filed within three years
of the date of overpayment.
6902.4. (a) The limitation period specified in Section 6902 shall
be suspended during any period of a person's life that the person is
financially disabled.
(b) (1) For purposes of subdivision (a), a person is financially
disabled if the person is unable to manage his or her financial
affairs by reason of medically determinable physical or mental
impairment of the person that can be expected to result in death or
that has lasted or can be expected to last for a continuous period of
not less than 12 months. A person shall not be considered to have an
impairment unless proof of the existence thereof is furnished in the
form and manner as the board may require.
(2) A person shall not be treated as financially disabled during
any period that the person's spouse or any other person is authorized
to act on behalf of the person in financial matters.
(c) This section applies to periods of disability commencing
before, on, or after the effective date of the act adding this
section, but does not apply to any claim for refund that, without
regard to this section, is barred by operation or rule of law,
including res judicata, as of the effective date of the act adding
this section.
6902.5. (a) For the purposes of this section:
(1) "Qualified taxpayer" means a person who is a qualified
taxpayer within the meaning of paragraph (17) of subdivision (b) of
Section 17053.85 or 23685.
(2) "Affiliate" means a qualified taxpayer's affiliated
corporation that has been assigned any portion of the credit amount
by the qualified taxpayer pursuant to subdivision (c) of Section
23685.
(3) "Credit amount" means an amount equal to the tax credit amount
that would otherwise be allowed to a qualified taxpayer pursuant to
Section 17053.85 or 23685 but for the election made pursuant to this
section.
(4) "Production period" means the production period as defined in
paragraph (12) of subdivision (b) of Section 17053.85 or 23685.
(5) (A) "Qualified sales and use taxes" means any state sales and
use taxes imposed by Part 1 (commencing with Section 6001), on the
operative date of the act adding this section.
(B) Notwithstanding subparagraph (A), "qualified sales and use
taxes" does not mean taxes imposed by Section 6051.2, 6051.5, 6201.2,
6201.5, Part 1.5 (commencing with Section 7200), Part 1.6
(commencing with Section 7251), or Section 35 of Article XIII of the
California Constitution.
(b) (1) A qualified taxpayer may, in lieu of claiming the credit
allowed by Section 17053.85 or 23685, make an irrevocable election to
apply the credit amount against qualified sales and use taxes
imposed on the qualified taxpayer in accordance with this section.
(2) An affiliate may, in lieu of claiming the assigned portion of
the credit allowed by Section 23685, make an irrevocable election to
apply the assigned portion of the credit amount against qualified
sales and use taxes imposed on the affiliate in accordance with this
section.
(c) (1) A qualified taxpayer or affiliate shall submit to the
board an irrevocable election, in a form as prescribed by the board,
which shall include, but not be limited to, the following
information:
(A) Representation that the claimant is a qualified taxpayer or an
affiliate.
(B) Statement of the dates on which the production period began
and ended.
(C) The credit amount, and if an affiliate, the portion of the
credit amount assigned to it and documentation supporting the
assignment of that portion of the credit amount.
(D) The amount of qualified sales and use taxes the claimant
remitted to the board during the period commencing on the first day
of the calendar quarter commencing immediately before the beginning
of the production period, and ending on the date the claimant was
required to file its most recent sales and use tax return with the
board.
(E) A copy of the credit certificate issued pursuant to
subparagraph (C) of paragraph (2) of subdivision (g) of Section
17053.85 or 23685.
(2) The election shall be filed on or before the date on which the
qualified taxpayer or affiliate would first be allowed to claim a
credit pursuant to Section 17053.85 or 23685 on its tax return.
(d) (1) The claimant may elect to obtain a refund of qualified
sales and use taxes paid during the period described in subparagraph
(D) of paragraph (1) of subdivision (c). If the claimant elects to
obtain a refund of qualified sales and use taxes, the claimant shall
file a claim for refund with the irrevocable election described in
subdivision (c). The refund amount shall not exceed, for a qualified
taxpayer, the credit amount, or for an affiliate, the portion of the
credit amount assigned to it.
(2) No interest shall be paid on any amount refunded or credited
pursuant to paragraph (1).
(e) If the claimant does not elect to obtain a refund or in the
case where the credit amount, or assigned portion, exceeds the amount
of its claim for refund for the qualified sales and use taxes, the
claimant may, for the reporting periods in the five years following
the last reporting period as described in subparagraph (D) of
paragraph (1) of subdivision (c), offset any remaining credit amount,
or assigned portion, against the qualified sales and use taxes
imposed during those reporting periods.
(f) Section 6961 shall apply to any refund, or part thereof, that
is erroneously made and any credit, or part thereof, that is
erroneously allowed pursuant to this section.
(g) The board shall provide an annual listing to the Franchise Tax
Board, in a form and manner agreed upon by the board and the
Franchise Tax Board, of the qualified taxpayers, or affiliates that
have been assigned a portion of the credit allowed under Section
23685 pursuant to subdivision (c) of Section 23685, who, during the
year, have made an irrevocable election pursuant to this section and
the credit amount, or portion of the credit amount, claimed by each
qualified taxpayer or affiliate.
(h) The board may prescribe rules and regulations for the
administration of this section.
6902.5. (a) For the purposes of this section:
(1) "Qualified taxpayer" means a person who is a qualified
taxpayer within the meaning of paragraph (17) of subdivision (b) of
Section 17053.85 or 23685.
(2) "Affiliate" means a qualified taxpayer's affiliated
corporation that has been assigned any portion of the credit amount
by the qualified taxpayer pursuant to subdivision (c) of Section
23685.
(3) "Credit amount" means an amount equal to the tax credit amount
that would otherwise be allowed to a qualified taxpayer pursuant to
Section 17053.85 or 23685 but for the election made pursuant to this
section.
(4) "Production period" means the production period as defined in
paragraph (12) of subdivision (b) of Section 17053.85 or 23685.
(5) (A) "Qualified sales and use taxes" means any state sales and
use taxes imposed by Part 1 (commencing with Section 6001), on the
operative date of the act adding this section.
(B) Notwithstanding subparagraph (A), "qualified sales and use
taxes" does not mean taxes imposed by Section 6051.2, 6051.5, 6201.2,
6201.5, Part 1.5 (commencing with Section 7200), Part 1.6
(commencing with Section 7251), or Section 35 of Article XIII of the
California Constitution.
(b) (1) A qualified taxpayer may, in lieu of claiming the credit
allowed by Section 17053.85 or 23685, make an irrevocable election to
apply the credit amount against qualified sales and use taxes
imposed on the qualified taxpayer in accordance with this section.
(2) An affiliate may, in lieu of claiming the assigned portion of
the credit allowed by Section 23685, make an irrevocable election to
apply the assigned portion of the credit amount against qualified
sales and use taxes imposed on the affiliate in accordance with this
section.
(c) (1) A qualified taxpayer or affiliate shall submit to the
board an irrevocable election, in a form as prescribed by the board,
which shall include, but not be limited to, the following
information:
(A) Representation that the claimant is a qualified taxpayer or an
affiliate.
(B) Statement of the dates on which the production period began
and ended.
(C) The credit amount, and if an affiliate, the portion of the
credit amount assigned to it and documentation supporting the
assignment of that portion of the credit amount.
(D) The amount of qualified sales and use taxes the claimant
remitted to the board during the period commencing on the first day
of the calendar quarter commencing immediately before the beginning
of the production period, and ending on the date the claimant was
required to file its most recent sales and use tax return with the
board.
(E) A copy of the credit certificate issued pursuant to
subparagraph (C) of paragraph (2) of subdivision (g) of Section
17053.85 or 23685.
(2) The election shall be filed on or before the date on which the
qualified taxpayer or affiliate would first be allowed to claim a
credit pursuant to Section 17053.85 or 23685 on its tax return.
(d) (1) The claimant may elect to obtain a refund of qualified
sales and use taxes paid during the period described in subparagraph
(D) of paragraph (1) of subdivision (c). If the claimant elects to
obtain a refund of qualified sales and use taxes, the claimant shall
file a claim for refund with the irrevocable election described in
subdivision (c). The refund amount shall not exceed, for a qualified
taxpayer, the credit amount, or for an affiliate, the portion of the
credit amount assigned to it.
(2) No interest shall be paid on any amount refunded or credited
pursuant to paragraph (1).
(e) If the claimant does not elect to obtain a refund or in the
case where the credit amount, or assigned portion, exceeds the amount
of its claim for refund for the qualified sales and use taxes, the
claimant may, for the reporting periods in the five years following
the last reporting period as described in subparagraph (D) of
paragraph (1) of subdivision (c), offset any remaining credit amount,
or assigned portion, against the qualified sales and use taxes
imposed during those reporting periods.
(f) Section 6961 shall apply to any refund, or part thereof, that
is erroneously made and any credit, or part thereof, that is
erroneously allowed pursuant to this section.
(g) The board shall provide an annual listing to the Franchise Tax
Board, in a form and manner agreed upon by the board and the
Franchise Tax Board, of the qualified taxpayers, or affiliates that
have been assigned a portion of the credit allowed under Section
23685 pursuant to subdivision (c) of Section 23685, who, during the
year, have made an irrevocable election pursuant to this section and
the credit amount, or portion of the credit amount, claimed by each
qualified taxpayer or affiliate.
(h) The board may prescribe rules and regulations for the
administration of this section.
6903. (a) No credit or refund of any amount paid pursuant to
Chapter 3 (commencing with Section 6201) shall be allowed to any
person on the ground that the storage, use, or other consumption of
the property is exempted under Section 6401 unless the person
establishes to the satisfaction of the board that his or her vendor
has paid the sales tax to the state with respect to the sale of the
property.
(b) For purposes of this section, "amount paid pursuant to Chapter
3 (commencing with Section 6201)" does not include any payment or
payments made pursuant to a determination made by the board under
Articles 2 (commencing with Section 6481) and 3 (commencing with
Section 6511) of Chapter 5.
6904. (a) Every claim shall be in writing and shall state the
specific grounds upon which the claim is founded.
(b) A claim filed for or on behalf of a class of taxpayers shall
do all of the following:
(1) Be accompanied by written authorization from each taxpayer
sought to be included in the class.
(2) Be signed by each taxpayer or taxpayer's authorized
representative.
(3) State the specific grounds on which the claim is founded.
6905. Failure to file a claim within the time prescribed in this
article constitutes a waiver of any demand against the State on
account of overpayment.
6906. Within 30 days after disallowing any claim in whole or in
part the board shall serve notice of its action on the claimant in
the manner prescribed for service of notice of a deficiency
determination.
6907. Interest shall be paid upon any overpayment of any amount of
tax at the modified adjusted rate per month established pursuant to
Section 6591.5, from the first day of the calendar month following
the month during which the overpayment was made. In addition, a
refund or credit shall be made of any interest imposed upon the
person making the overpayment with respect to the amount being
refunded or credited.
The interest shall be paid:
(a) In the case of a refund, to the last day of the calendar month
following the date upon which the person making the overpayment, if
he or she has not already filed a claim, is notified by the board
that a claim may be filed or the date upon which the claim is
approved by the board, whichever date is the earlier.
(b) In the case of a credit, to the same date as that to which
interest is computed on the tax or amount against which the credit is
applied.
6908. (a) If the board determines that any overpayment has been
made intentionally or by reason of carelessness, it shall not allow
any interest thereon.
(b) If any person who has filed a claim for refund requests the
board to defer action on the claim, the board, as a condition to
deferring action, may require the claimant to waive interest for the
period during which the person requests the board to defer action on
the claim.
6909. (a) The Controller shall transfer the amount of six hundred
sixty-five million two hundred sixty-one thousand dollars
($665,261,000) from the General Fund to the Smog Impact Fee Refund
Account, which is hereby created in the Special Deposit Fund.
(b) Notwithstanding Section 13340 of the Government Code, the
moneys in the Smog Impact Fee Refund Account in the Special Deposit
Fund are hereby continuously appropriated, without regard to fiscal
years, to the Department of Motor Vehicles for the purpose of making
refunds to persons who paid the smog impact fee formerly required by
Chapter 3.3 (commencing with Section 6261) upon registering a vehicle
in California. Each refund shall also include the amount of any
penalties incurred by the payer with respect to the fee, and shall
also include interest as specified in Sections 1673.2 and 1673.4 of
the Vehicle Code. In addition, the appropriate level of court costs,
fees, and expenses in the settlement of the case of Jordan v.
Department of Motor Vehicles (1999) 75 Cal.App.4th 449, shall be
determined through binding arbitration, and all of those fees, costs,
or expenses shall be paid with funds from the account.
(c) The amount of any refund made under Section 1673.2 or Section
1673.4 of the Vehicle Code that is returned to the Department of
Motor Vehicles because the recipient's mailing address as shown by
the records of the department is incorrect shall be retained in the
Smog Impact Fee Refund Account in the Special Deposit Fund until
either of the following occurs:
(1) The department is able to ascertain the correct address of the
recipient, at which time the refund shall be mailed to that address.
(2) The date upon which those funds are transferred from the Smog
Impact Fee Refund Account in the Special Deposit Fund back to the
General Fund.
(d) Any unencumbered balance remaining in the account on or after
June 30, 2004, shall revert to the General Fund.
(e) The Legislature hereby finds and declares that the amount
appropriated under subdivision (b) is a refund of taxes, as described
in subdivision (a) of Section 8 of Article XIII of the Constitution,
and, as a result, is not included within the "appropriations subject
to limitation" of the state, as defined in that subdivision (a).
