State Codes and Statutes

Statutes > California > Rtc > 7275-7279.6

REVENUE AND TAXATION CODE
SECTION 7275-7279.6



7275.  (a) Where a tax levied in a county in conformity with Part
1.6 (commencing with Section 7251) has been determined to be
unconstitutional in a final and nonappealable decision of a court of
competent jurisdiction and the revenues derived from that
unconstitutional tax are paid to the board and held in an impound
account, the board shall administer refunds and reimbursements of
those illegally collected taxes in accordance with the provisions of
this chapter.
   (b) (1) Notwithstanding any other provision of law, on and after
the effective date of the act adding this chapter, the procedures for
refund or reimbursement of unconstitutional taxes contained in this
chapter constitute the sole remedies for refund or reimbursement of
illegal taxes as described in subdivision (a).
   (2) Claims for refund of illegally collected taxes as described in
subdivision (a) that were filed prior to the effective date of the
act adding this chapter that have not been paid before that date
shall be processed and paid to purchasers in accordance with the
provisions of this chapter, regardless of whether the purchaser or
the retailer filed the claim. Nothing in the act adding this chapter
shall be construed to require refiling of those previously filed
claims for refund.
   (c) Notwithstanding the provisions of Section 6902, the period of
limitations specified in subparagraph (B) of paragraph (3) of
subdivision (b) of Section 7277 shall apply to any claims for refund
that are payable from any revenues paid to the board and held in an
impound account which are derived from the unconstitutional tax.
   (d) No later than 10 days from the date the decision determining
the contested tax to be unconstitutional is final and nonappealable,
the court shall order the entity that levied the unconstitutional tax
to pay the impounded revenues to the board which shall immediately
deposit them in a segregated impound account in the Retail Sales Tax
Fund. The moneys so deposited, together with any interest thereon,
shall be used as follows:
   (1) To satisfy in full all valid claims for refund filed prior to
the effective date of the act adding this chapter, in amounts as
verified by audit of the records of the board.
   (2) To fund a reserve account, in an amount to be determined by
the board, with the approval of the Department of Finance, to fund
refund and reimbursement of moneys from illegally collected taxes as
described in subdivision (a), liability for which arises out of audit
assessments occurring after the date of the act adding this chapter.
   (A) Moneys derived from the unconstitutional tax described in
subdivision (a) received by the board after the date the board
receives the impounded revenues as provided in subdivision (d) shall
be deposited in the reserve account provided by this subdivision.
   (B) This reserve account shall be maintained for 10 years from the
date the board deposits the revenues in the segregated account in
the Retail Sales Tax Fund provided by this subdivision.
   (i) Any amount deposited in the reserve account shall be used to
pay other refunds or reimbursements to taxpayers within 12 months of
deposit. Amounts not used for refunds or reimbursements within 12
months of deposit shall be transferred to the county in which the
unconstitutional tax was levied for deposit in that county's general
fund.
   (ii) Upon termination of the 10-year period, any moneys remaining
in this segregated account shall be transferred to the county in
which the unconstitutional tax was levied for deposit in that county'
s general fund.
   (3) To satisfy valid claims for refund filed after the effective
date of the act adding this chapter as described in Section 7277.
   (4) To reimburse the board's actual and reasonable costs of
administering the refunds and reimbursements provided in this
chapter, as approved by the Department of Finance.
   (5) To reimburse losses resulting from the tax credit provided by
Section 7276. In reimbursing those losses, the board may use its best
estimates, based on historical allocation information, as to the
amount of those losses. Any entity receiving the impounded moneys
rather than the taxes being credited shall suffer no impairment of
revenues and the timing and receipt as well as the amount of revenues
shall not be adversely affected by the credit. Any security
arrangement that the board has with any entity receiving impounded
moneys, including, but not limited to, provisions requiring the
transfer of revenues to a bond trustee, shall remain in full force
and effect during the period of the credit, and any pledge of tax
revenues shall apply with equal force and effect to the impounded
moneys distributed to those entities by the board in lieu of the
credited tax revenues, without any further action required by the
entity of the board.
   (e) Any impounded moneys subject to refund or reimbursement
pursuant to this chapter that are not used for that purpose or not
deposited in the reserve account described in subdivision (d) shall
be transmitted to the county in which the unconstitutional tax was
levied for deposit in that county's general fund.
   (f) For the purposes of bringing an action against the board for
recovery of the whole or any part of the amount claimed as an
overpayment of unconstitutional taxes as described in subdivision
(a), the six-month period provided in Section 6934 shall not commence
until the one-year claim period provided by Section 7277 has expired
pursuant to the terms of this chapter. Suits for refund shall be
brought in accordance with the provisions of Article 2 (commencing
with Section 6931) of Chapter 7 of Part 1.



7276.  Any taxpayers located in the jurisdiction in which an
unconstitutional tax as described in subdivision (a) of Section 7275
was levied may claim a credit against their total amount of state and
county sales or use tax as follows:
   (a) An eligible taxpayer shall report sales and use taxes at the
rates lawfully in effect in the county but may claim a credit against
the total amount of state and local taxes, under rules to be
promulgated by the board, in the amount of 0.75 percent. For the
purpose of this section, "eligible taxpayer" means any person who
resides in, or whose place of business is located in, the county in
which the unconstitutional tax as described in subdivision (a) of
Section 7275 was imposed, and who is required to report and pay sales
tax under Chapter 2 (commencing with Section 6051) of Part 1 and any
person required to report and pay or report and collect use tax
under Chapter 3 (commencing with Section 6201) of Part 1.
   (b) An eligible taxpayer who claims the credit provided in
subdivision (a) shall remit to the board all reported tax moneys
except those which represent the amount of the credit. Amounts
reported, but not remitted under subdivision (a), shall be deemed to
have been paid in full. Amounts not reported shall remain subject to
assessment under Chapter 5 (commencing with Section 6451) of Part 1.
The portion of those assessments representing this tax credit shall
be paid from the reserve account provided by paragraph (2) of
subdivision (d) of Section 7275.
   (c) A taxpayer may not collect sales tax reimbursement pursuant to
Section 1656.1 of the Civil Code nor use tax in an amount in excess
of the amount required to be reported under subdivision (b) less
amounts subject to credit under subdivision (a) during the period for
which a credit is allowed. A receipt for use tax issued pursuant to
Section 6202 in the amount of tax actually remitted to the board
under subdivision (b) shall be sufficient to relieve the purchaser
for further liability for the tax computed at the reporting rate.
   (d) The tax credit provided by subdivision (a) may be claimed upon
notice to eligible taxpayers by the board. That notice shall provide
that the credit may be claimed commencing with those taxes due on
the first day of the first calendar quarter commencing more than 120
days after the effective date of the act adding this section or after
the court decision described in paragraph (a) of Section 7275
becomes final and unappealable, whichever occurs later.
   (e) The tax credit shall continue until the board determines that
the amount of impounded revenues held by the board and available to
fund the revenue losses that result from the tax credit is
insufficient to fund the tax credit for another full calendar
quarter. Eligible taxpayers shall continue to take the credit on
their returns until notified by the board that the credit is
terminated.



7277.  (a) In the event that any tax collected under this part is
determined on the basis of Section 4 of Article XIII A of the
California Constitution to be unconstitutional in a final and
nonappealable decision of a court of competent jurisdiction, and the
revenues derived from the unconstitutional tax are held by the board
in an impound account, a person who has reimbursed a retailer for
that payment of that tax or a person, other than in a capacity as a
retailer, who has paid that tax may file with the board a claim for
refund of the unconstitutional tax in accordance with the
requirements and procedures set forth in subdivision (b).
   (b) (1) The claim for refund shall be in writing, shall state the
specific ground upon which the claim is founded, and shall be
accompanied by proof of payment of the tax to a retailer or
wholesaler, including, but not limited to, a copy of an invoice, bill
of sale, or purchase contract, that indicates the following:
   (A) The date upon which, and place at which, the purchase
occurred.
   (B) A description of the property purchased.
   (C) The price paid for the property.
   (D) The amount of the transactions and use tax collected with
respect to the purchase, or if that amount is not separately stated,
the amount of the purchase and the rate of tax from which the amount
of transactions and use tax may be calculated.
   (2) In the case of a purchaser that has self-reported use tax to
the state, the claim for refund shall also indicate the amount of use
tax paid and the period for which those taxes were remitted.
   (3) (A) Only a claim for refund made with respect to a single
purchase or aggregate purchases of five thousand dollars ($5,000) or
more shall be eligible for refund pursuant to this section.
   (B) A claim for refund shall be filed within one year of the first
day of the first calendar quarter commencing after the effective
date of this section or after the date upon which the court decision
described in subdivision (a) becomes final and nonappealable,
whichever occurs later. If that one-year period does not end on the
last day of a calendar quarter, it shall end on the last day of the
preceding calendar quarter or on the last day of the calendar quarter
which is nearest to the date the one-year period ends.
   (c) For purposes of this section, "purchaser" means any person or
entity, other than in a capacity as a retailer, who purchased
tangible personal property the sale or use of which was subject to
the unconstitutional tax described in subdivision (a).
   (d) Interest shall be paid on the refunds provided by this chapter
pursuant to Section 6907.



7279.  (a) The total amount of refunds paid under this chapter shall
be the amount of the impounded revenues derived from the
unconstitutional tax plus any interest earned on that amount that
remains after valid claims for refund filed prior to the effective
date of the act adding this chapter are paid and the reserve amount
described in paragraph (2) of subdivision (d) of Section 7275 is
established.
   (b) The board's actual and reasonable costs of administering
refunds in accordance with this section and Section 7277, as approved
by the Department of Finance, may be paid from the amount that is
set aside for refunds under this chapter and may be paid prior to the
payment of any claim for refund.


7279.5.  A copy of the provisions of this chapter may be filed by
the board with the court to demonstrate that implementation of the
proposed plan of reimbursement, refund, or credit in accordance with
the provisions of this chapter complies with any orders of the court
requiring implementation of a refund plan by the board. Judicial
notice of this chapter shall be taken by the court. In rendering a
decision that the provisions of this chapter comply with any order of
the court, the court shall order that any attorney's fees and costs
incurred by the parties for the benefit of the persons seeking a
refund be paid from the revenues collected pursuant to that tax plus
any interest earned thereon.


7279.6.  An arbitrary and capricious action of the board in
implementing the provisions of this chapter shall be reviewable by
writ.

State Codes and Statutes

Statutes > California > Rtc > 7275-7279.6

REVENUE AND TAXATION CODE
SECTION 7275-7279.6



7275.  (a) Where a tax levied in a county in conformity with Part
1.6 (commencing with Section 7251) has been determined to be
unconstitutional in a final and nonappealable decision of a court of
competent jurisdiction and the revenues derived from that
unconstitutional tax are paid to the board and held in an impound
account, the board shall administer refunds and reimbursements of
those illegally collected taxes in accordance with the provisions of
this chapter.
   (b) (1) Notwithstanding any other provision of law, on and after
the effective date of the act adding this chapter, the procedures for
refund or reimbursement of unconstitutional taxes contained in this
chapter constitute the sole remedies for refund or reimbursement of
illegal taxes as described in subdivision (a).
   (2) Claims for refund of illegally collected taxes as described in
subdivision (a) that were filed prior to the effective date of the
act adding this chapter that have not been paid before that date
shall be processed and paid to purchasers in accordance with the
provisions of this chapter, regardless of whether the purchaser or
the retailer filed the claim. Nothing in the act adding this chapter
shall be construed to require refiling of those previously filed
claims for refund.
   (c) Notwithstanding the provisions of Section 6902, the period of
limitations specified in subparagraph (B) of paragraph (3) of
subdivision (b) of Section 7277 shall apply to any claims for refund
that are payable from any revenues paid to the board and held in an
impound account which are derived from the unconstitutional tax.
   (d) No later than 10 days from the date the decision determining
the contested tax to be unconstitutional is final and nonappealable,
the court shall order the entity that levied the unconstitutional tax
to pay the impounded revenues to the board which shall immediately
deposit them in a segregated impound account in the Retail Sales Tax
Fund. The moneys so deposited, together with any interest thereon,
shall be used as follows:
   (1) To satisfy in full all valid claims for refund filed prior to
the effective date of the act adding this chapter, in amounts as
verified by audit of the records of the board.
   (2) To fund a reserve account, in an amount to be determined by
the board, with the approval of the Department of Finance, to fund
refund and reimbursement of moneys from illegally collected taxes as
described in subdivision (a), liability for which arises out of audit
assessments occurring after the date of the act adding this chapter.
   (A) Moneys derived from the unconstitutional tax described in
subdivision (a) received by the board after the date the board
receives the impounded revenues as provided in subdivision (d) shall
be deposited in the reserve account provided by this subdivision.
   (B) This reserve account shall be maintained for 10 years from the
date the board deposits the revenues in the segregated account in
the Retail Sales Tax Fund provided by this subdivision.
   (i) Any amount deposited in the reserve account shall be used to
pay other refunds or reimbursements to taxpayers within 12 months of
deposit. Amounts not used for refunds or reimbursements within 12
months of deposit shall be transferred to the county in which the
unconstitutional tax was levied for deposit in that county's general
fund.
   (ii) Upon termination of the 10-year period, any moneys remaining
in this segregated account shall be transferred to the county in
which the unconstitutional tax was levied for deposit in that county'
s general fund.
   (3) To satisfy valid claims for refund filed after the effective
date of the act adding this chapter as described in Section 7277.
   (4) To reimburse the board's actual and reasonable costs of
administering the refunds and reimbursements provided in this
chapter, as approved by the Department of Finance.
   (5) To reimburse losses resulting from the tax credit provided by
Section 7276. In reimbursing those losses, the board may use its best
estimates, based on historical allocation information, as to the
amount of those losses. Any entity receiving the impounded moneys
rather than the taxes being credited shall suffer no impairment of
revenues and the timing and receipt as well as the amount of revenues
shall not be adversely affected by the credit. Any security
arrangement that the board has with any entity receiving impounded
moneys, including, but not limited to, provisions requiring the
transfer of revenues to a bond trustee, shall remain in full force
and effect during the period of the credit, and any pledge of tax
revenues shall apply with equal force and effect to the impounded
moneys distributed to those entities by the board in lieu of the
credited tax revenues, without any further action required by the
entity of the board.
   (e) Any impounded moneys subject to refund or reimbursement
pursuant to this chapter that are not used for that purpose or not
deposited in the reserve account described in subdivision (d) shall
be transmitted to the county in which the unconstitutional tax was
levied for deposit in that county's general fund.
   (f) For the purposes of bringing an action against the board for
recovery of the whole or any part of the amount claimed as an
overpayment of unconstitutional taxes as described in subdivision
(a), the six-month period provided in Section 6934 shall not commence
until the one-year claim period provided by Section 7277 has expired
pursuant to the terms of this chapter. Suits for refund shall be
brought in accordance with the provisions of Article 2 (commencing
with Section 6931) of Chapter 7 of Part 1.



7276.  Any taxpayers located in the jurisdiction in which an
unconstitutional tax as described in subdivision (a) of Section 7275
was levied may claim a credit against their total amount of state and
county sales or use tax as follows:
   (a) An eligible taxpayer shall report sales and use taxes at the
rates lawfully in effect in the county but may claim a credit against
the total amount of state and local taxes, under rules to be
promulgated by the board, in the amount of 0.75 percent. For the
purpose of this section, "eligible taxpayer" means any person who
resides in, or whose place of business is located in, the county in
which the unconstitutional tax as described in subdivision (a) of
Section 7275 was imposed, and who is required to report and pay sales
tax under Chapter 2 (commencing with Section 6051) of Part 1 and any
person required to report and pay or report and collect use tax
under Chapter 3 (commencing with Section 6201) of Part 1.
   (b) An eligible taxpayer who claims the credit provided in
subdivision (a) shall remit to the board all reported tax moneys
except those which represent the amount of the credit. Amounts
reported, but not remitted under subdivision (a), shall be deemed to
have been paid in full. Amounts not reported shall remain subject to
assessment under Chapter 5 (commencing with Section 6451) of Part 1.
The portion of those assessments representing this tax credit shall
be paid from the reserve account provided by paragraph (2) of
subdivision (d) of Section 7275.
   (c) A taxpayer may not collect sales tax reimbursement pursuant to
Section 1656.1 of the Civil Code nor use tax in an amount in excess
of the amount required to be reported under subdivision (b) less
amounts subject to credit under subdivision (a) during the period for
which a credit is allowed. A receipt for use tax issued pursuant to
Section 6202 in the amount of tax actually remitted to the board
under subdivision (b) shall be sufficient to relieve the purchaser
for further liability for the tax computed at the reporting rate.
   (d) The tax credit provided by subdivision (a) may be claimed upon
notice to eligible taxpayers by the board. That notice shall provide
that the credit may be claimed commencing with those taxes due on
the first day of the first calendar quarter commencing more than 120
days after the effective date of the act adding this section or after
the court decision described in paragraph (a) of Section 7275
becomes final and unappealable, whichever occurs later.
   (e) The tax credit shall continue until the board determines that
the amount of impounded revenues held by the board and available to
fund the revenue losses that result from the tax credit is
insufficient to fund the tax credit for another full calendar
quarter. Eligible taxpayers shall continue to take the credit on
their returns until notified by the board that the credit is
terminated.



7277.  (a) In the event that any tax collected under this part is
determined on the basis of Section 4 of Article XIII A of the
California Constitution to be unconstitutional in a final and
nonappealable decision of a court of competent jurisdiction, and the
revenues derived from the unconstitutional tax are held by the board
in an impound account, a person who has reimbursed a retailer for
that payment of that tax or a person, other than in a capacity as a
retailer, who has paid that tax may file with the board a claim for
refund of the unconstitutional tax in accordance with the
requirements and procedures set forth in subdivision (b).
   (b) (1) The claim for refund shall be in writing, shall state the
specific ground upon which the claim is founded, and shall be
accompanied by proof of payment of the tax to a retailer or
wholesaler, including, but not limited to, a copy of an invoice, bill
of sale, or purchase contract, that indicates the following:
   (A) The date upon which, and place at which, the purchase
occurred.
   (B) A description of the property purchased.
   (C) The price paid for the property.
   (D) The amount of the transactions and use tax collected with
respect to the purchase, or if that amount is not separately stated,
the amount of the purchase and the rate of tax from which the amount
of transactions and use tax may be calculated.
   (2) In the case of a purchaser that has self-reported use tax to
the state, the claim for refund shall also indicate the amount of use
tax paid and the period for which those taxes were remitted.
   (3) (A) Only a claim for refund made with respect to a single
purchase or aggregate purchases of five thousand dollars ($5,000) or
more shall be eligible for refund pursuant to this section.
   (B) A claim for refund shall be filed within one year of the first
day of the first calendar quarter commencing after the effective
date of this section or after the date upon which the court decision
described in subdivision (a) becomes final and nonappealable,
whichever occurs later. If that one-year period does not end on the
last day of a calendar quarter, it shall end on the last day of the
preceding calendar quarter or on the last day of the calendar quarter
which is nearest to the date the one-year period ends.
   (c) For purposes of this section, "purchaser" means any person or
entity, other than in a capacity as a retailer, who purchased
tangible personal property the sale or use of which was subject to
the unconstitutional tax described in subdivision (a).
   (d) Interest shall be paid on the refunds provided by this chapter
pursuant to Section 6907.



7279.  (a) The total amount of refunds paid under this chapter shall
be the amount of the impounded revenues derived from the
unconstitutional tax plus any interest earned on that amount that
remains after valid claims for refund filed prior to the effective
date of the act adding this chapter are paid and the reserve amount
described in paragraph (2) of subdivision (d) of Section 7275 is
established.
   (b) The board's actual and reasonable costs of administering
refunds in accordance with this section and Section 7277, as approved
by the Department of Finance, may be paid from the amount that is
set aside for refunds under this chapter and may be paid prior to the
payment of any claim for refund.


7279.5.  A copy of the provisions of this chapter may be filed by
the board with the court to demonstrate that implementation of the
proposed plan of reimbursement, refund, or credit in accordance with
the provisions of this chapter complies with any orders of the court
requiring implementation of a refund plan by the board. Judicial
notice of this chapter shall be taken by the court. In rendering a
decision that the provisions of this chapter comply with any order of
the court, the court shall order that any attorney's fees and costs
incurred by the parties for the benefit of the persons seeking a
refund be paid from the revenues collected pursuant to that tax plus
any interest earned thereon.


7279.6.  An arbitrary and capricious action of the board in
implementing the provisions of this chapter shall be reviewable by
writ.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Rtc > 7275-7279.6

REVENUE AND TAXATION CODE
SECTION 7275-7279.6



7275.  (a) Where a tax levied in a county in conformity with Part
1.6 (commencing with Section 7251) has been determined to be
unconstitutional in a final and nonappealable decision of a court of
competent jurisdiction and the revenues derived from that
unconstitutional tax are paid to the board and held in an impound
account, the board shall administer refunds and reimbursements of
those illegally collected taxes in accordance with the provisions of
this chapter.
   (b) (1) Notwithstanding any other provision of law, on and after
the effective date of the act adding this chapter, the procedures for
refund or reimbursement of unconstitutional taxes contained in this
chapter constitute the sole remedies for refund or reimbursement of
illegal taxes as described in subdivision (a).
   (2) Claims for refund of illegally collected taxes as described in
subdivision (a) that were filed prior to the effective date of the
act adding this chapter that have not been paid before that date
shall be processed and paid to purchasers in accordance with the
provisions of this chapter, regardless of whether the purchaser or
the retailer filed the claim. Nothing in the act adding this chapter
shall be construed to require refiling of those previously filed
claims for refund.
   (c) Notwithstanding the provisions of Section 6902, the period of
limitations specified in subparagraph (B) of paragraph (3) of
subdivision (b) of Section 7277 shall apply to any claims for refund
that are payable from any revenues paid to the board and held in an
impound account which are derived from the unconstitutional tax.
   (d) No later than 10 days from the date the decision determining
the contested tax to be unconstitutional is final and nonappealable,
the court shall order the entity that levied the unconstitutional tax
to pay the impounded revenues to the board which shall immediately
deposit them in a segregated impound account in the Retail Sales Tax
Fund. The moneys so deposited, together with any interest thereon,
shall be used as follows:
   (1) To satisfy in full all valid claims for refund filed prior to
the effective date of the act adding this chapter, in amounts as
verified by audit of the records of the board.
   (2) To fund a reserve account, in an amount to be determined by
the board, with the approval of the Department of Finance, to fund
refund and reimbursement of moneys from illegally collected taxes as
described in subdivision (a), liability for which arises out of audit
assessments occurring after the date of the act adding this chapter.
   (A) Moneys derived from the unconstitutional tax described in
subdivision (a) received by the board after the date the board
receives the impounded revenues as provided in subdivision (d) shall
be deposited in the reserve account provided by this subdivision.
   (B) This reserve account shall be maintained for 10 years from the
date the board deposits the revenues in the segregated account in
the Retail Sales Tax Fund provided by this subdivision.
   (i) Any amount deposited in the reserve account shall be used to
pay other refunds or reimbursements to taxpayers within 12 months of
deposit. Amounts not used for refunds or reimbursements within 12
months of deposit shall be transferred to the county in which the
unconstitutional tax was levied for deposit in that county's general
fund.
   (ii) Upon termination of the 10-year period, any moneys remaining
in this segregated account shall be transferred to the county in
which the unconstitutional tax was levied for deposit in that county'
s general fund.
   (3) To satisfy valid claims for refund filed after the effective
date of the act adding this chapter as described in Section 7277.
   (4) To reimburse the board's actual and reasonable costs of
administering the refunds and reimbursements provided in this
chapter, as approved by the Department of Finance.
   (5) To reimburse losses resulting from the tax credit provided by
Section 7276. In reimbursing those losses, the board may use its best
estimates, based on historical allocation information, as to the
amount of those losses. Any entity receiving the impounded moneys
rather than the taxes being credited shall suffer no impairment of
revenues and the timing and receipt as well as the amount of revenues
shall not be adversely affected by the credit. Any security
arrangement that the board has with any entity receiving impounded
moneys, including, but not limited to, provisions requiring the
transfer of revenues to a bond trustee, shall remain in full force
and effect during the period of the credit, and any pledge of tax
revenues shall apply with equal force and effect to the impounded
moneys distributed to those entities by the board in lieu of the
credited tax revenues, without any further action required by the
entity of the board.
   (e) Any impounded moneys subject to refund or reimbursement
pursuant to this chapter that are not used for that purpose or not
deposited in the reserve account described in subdivision (d) shall
be transmitted to the county in which the unconstitutional tax was
levied for deposit in that county's general fund.
   (f) For the purposes of bringing an action against the board for
recovery of the whole or any part of the amount claimed as an
overpayment of unconstitutional taxes as described in subdivision
(a), the six-month period provided in Section 6934 shall not commence
until the one-year claim period provided by Section 7277 has expired
pursuant to the terms of this chapter. Suits for refund shall be
brought in accordance with the provisions of Article 2 (commencing
with Section 6931) of Chapter 7 of Part 1.



7276.  Any taxpayers located in the jurisdiction in which an
unconstitutional tax as described in subdivision (a) of Section 7275
was levied may claim a credit against their total amount of state and
county sales or use tax as follows:
   (a) An eligible taxpayer shall report sales and use taxes at the
rates lawfully in effect in the county but may claim a credit against
the total amount of state and local taxes, under rules to be
promulgated by the board, in the amount of 0.75 percent. For the
purpose of this section, "eligible taxpayer" means any person who
resides in, or whose place of business is located in, the county in
which the unconstitutional tax as described in subdivision (a) of
Section 7275 was imposed, and who is required to report and pay sales
tax under Chapter 2 (commencing with Section 6051) of Part 1 and any
person required to report and pay or report and collect use tax
under Chapter 3 (commencing with Section 6201) of Part 1.
   (b) An eligible taxpayer who claims the credit provided in
subdivision (a) shall remit to the board all reported tax moneys
except those which represent the amount of the credit. Amounts
reported, but not remitted under subdivision (a), shall be deemed to
have been paid in full. Amounts not reported shall remain subject to
assessment under Chapter 5 (commencing with Section 6451) of Part 1.
The portion of those assessments representing this tax credit shall
be paid from the reserve account provided by paragraph (2) of
subdivision (d) of Section 7275.
   (c) A taxpayer may not collect sales tax reimbursement pursuant to
Section 1656.1 of the Civil Code nor use tax in an amount in excess
of the amount required to be reported under subdivision (b) less
amounts subject to credit under subdivision (a) during the period for
which a credit is allowed. A receipt for use tax issued pursuant to
Section 6202 in the amount of tax actually remitted to the board
under subdivision (b) shall be sufficient to relieve the purchaser
for further liability for the tax computed at the reporting rate.
   (d) The tax credit provided by subdivision (a) may be claimed upon
notice to eligible taxpayers by the board. That notice shall provide
that the credit may be claimed commencing with those taxes due on
the first day of the first calendar quarter commencing more than 120
days after the effective date of the act adding this section or after
the court decision described in paragraph (a) of Section 7275
becomes final and unappealable, whichever occurs later.
   (e) The tax credit shall continue until the board determines that
the amount of impounded revenues held by the board and available to
fund the revenue losses that result from the tax credit is
insufficient to fund the tax credit for another full calendar
quarter. Eligible taxpayers shall continue to take the credit on
their returns until notified by the board that the credit is
terminated.



7277.  (a) In the event that any tax collected under this part is
determined on the basis of Section 4 of Article XIII A of the
California Constitution to be unconstitutional in a final and
nonappealable decision of a court of competent jurisdiction, and the
revenues derived from the unconstitutional tax are held by the board
in an impound account, a person who has reimbursed a retailer for
that payment of that tax or a person, other than in a capacity as a
retailer, who has paid that tax may file with the board a claim for
refund of the unconstitutional tax in accordance with the
requirements and procedures set forth in subdivision (b).
   (b) (1) The claim for refund shall be in writing, shall state the
specific ground upon which the claim is founded, and shall be
accompanied by proof of payment of the tax to a retailer or
wholesaler, including, but not limited to, a copy of an invoice, bill
of sale, or purchase contract, that indicates the following:
   (A) The date upon which, and place at which, the purchase
occurred.
   (B) A description of the property purchased.
   (C) The price paid for the property.
   (D) The amount of the transactions and use tax collected with
respect to the purchase, or if that amount is not separately stated,
the amount of the purchase and the rate of tax from which the amount
of transactions and use tax may be calculated.
   (2) In the case of a purchaser that has self-reported use tax to
the state, the claim for refund shall also indicate the amount of use
tax paid and the period for which those taxes were remitted.
   (3) (A) Only a claim for refund made with respect to a single
purchase or aggregate purchases of five thousand dollars ($5,000) or
more shall be eligible for refund pursuant to this section.
   (B) A claim for refund shall be filed within one year of the first
day of the first calendar quarter commencing after the effective
date of this section or after the date upon which the court decision
described in subdivision (a) becomes final and nonappealable,
whichever occurs later. If that one-year period does not end on the
last day of a calendar quarter, it shall end on the last day of the
preceding calendar quarter or on the last day of the calendar quarter
which is nearest to the date the one-year period ends.
   (c) For purposes of this section, "purchaser" means any person or
entity, other than in a capacity as a retailer, who purchased
tangible personal property the sale or use of which was subject to
the unconstitutional tax described in subdivision (a).
   (d) Interest shall be paid on the refunds provided by this chapter
pursuant to Section 6907.



7279.  (a) The total amount of refunds paid under this chapter shall
be the amount of the impounded revenues derived from the
unconstitutional tax plus any interest earned on that amount that
remains after valid claims for refund filed prior to the effective
date of the act adding this chapter are paid and the reserve amount
described in paragraph (2) of subdivision (d) of Section 7275 is
established.
   (b) The board's actual and reasonable costs of administering
refunds in accordance with this section and Section 7277, as approved
by the Department of Finance, may be paid from the amount that is
set aside for refunds under this chapter and may be paid prior to the
payment of any claim for refund.


7279.5.  A copy of the provisions of this chapter may be filed by
the board with the court to demonstrate that implementation of the
proposed plan of reimbursement, refund, or credit in accordance with
the provisions of this chapter complies with any orders of the court
requiring implementation of a refund plan by the board. Judicial
notice of this chapter shall be taken by the court. In rendering a
decision that the provisions of this chapter comply with any order of
the court, the court shall order that any attorney's fees and costs
incurred by the parties for the benefit of the persons seeking a
refund be paid from the revenues collected pursuant to that tax plus
any interest earned thereon.


7279.6.  An arbitrary and capricious action of the board in
implementing the provisions of this chapter shall be reviewable by
writ.