7651. Each supplier shall prepare and file with the board a return
in the form as prescribed by the board, which may include, but not be
limited to, electronic media showing the total number of gallons of
motor vehicle fuel removed, sold, or entered within this state during
each calendar month, or that monthly period ended during that
calendar month as the board may authorize, the amount of tax due for
the month covered by the return, and other information as the board
deems necessary for the proper administration of this part. The
person shall file the return on or before the last day of the month
following the monthly period to which it relates, together with a
remittance payable to the Controller for the amount of tax due for
that period less whatever amounts may have been paid theretofore for
the same period because of returns, prepayment forms, and payments
made on a weekly basis. To facilitate the administration of this
part, the board may require the filing of the returns for other than
monthly periods. Returns shall be authenticated in a form or pursuant
to methods as may be prescribed by the board.
7652.5. (a) Each terminal operator shall prepare and file with the
board a report in the form as prescribed by the board, which may
include, but not be limited to, electronic media showing, for the
calendar month, or that monthly period ended during the calendar
month as the board may authorize, the following:
(1) The name and license number of each person that is a position
holder at each terminal it operates;
(2) The amount of motor vehicle fuel received at each terminal it
operates;
(3) The identity of each position holder with respect to the rack
removals of motor vehicle fuel from each terminal it operates and the
volume and dates of the removals;
(4) The amount of motor vehicle fuel stored at each terminal it
operates;
(5) The destination (by state) of all motor vehicle fuel removed
at a terminal rack of each terminal it operates, to the extent that
information has been provided to the terminal operator; and
(6) Any other information required by the board for the proper
administration of this part.
The terminal operator shall file the report on or before the last
day of the month following the monthly period to which it relates. To
facilitate the administration of this part, the board may require
the filing of the reports for other than monthly periods. Reports
shall be authenticated in a form or pursuant to methods as may be
prescribed by the board.
(b) Upon written approval of the board, a terminal operator may
satisfy the requirements of subdivision (a) above by executing and
providing to the board a consent and authorization for the Internal
Revenue Service to provide to the board under Section 6103 of the
Internal Revenue Code, the return filed by the terminal operator
under Section 48.4101-2 of Title 26 of the Code of Federal
Regulations. The board may, in its sole discretion, rescind its
approval and require a terminal operator to file reports as specified
in subdivision (a).
7652.7. (a) Each pipeline operator and vessel operator shall
prepare and file with the board a report in the form as prescribed by
the board, which may include, but not be limited to, electronic
media showing, for the calendar month, or that monthly period ended
during the calendar month as the board may authorize, all of the
following:
(1) The amount of motor vehicle fuel delivered to each terminal or
refinery.
(2) The location of the terminal or refinery where the motor
vehicle fuel was delivered.
(3) The date of delivery.
(4) Any other information required by the board for the proper
administration of this part.
The pipeline operator and vessel operator shall file the report on
or before the last day of the month following the monthly period to
which it relates. To facilitate the administration of this part, the
board may require the filing of the reports for other than monthly
periods. Reports shall be authenticated in a form or pursuant to
methods as may be prescribed by the board.
(b) Upon written approval of the board, a pipeline operator and
vessel operator may satisfy the requirements of subdivision (a) by
executing and providing to the board a consent and authorization for
the Internal Revenue Service to provide to the board under Section
6103 of the Internal Revenue Code, the return filed by the pipeline
operator and vessel operator under Section 48.4101-2 of Title 26 of
the Code of Federal Regulations. The board may, in its sole
discretion, rescind its approval and require a pipeline operator and
vessel operator to file reports as specified in subdivision (a).
7652.8. Each train operator shall prepare and file with the board a
report in the form as prescribed by the board, which may include,
but not be limited to, electronic media showing, for the calendar
month, or that monthly period ended during the calendar month as the
board may authorize, all of the following:
(a) The amount of motor vehicle fuel, alcohol, and aircraft jet
fuel delivered into, out of, or within this state.
(b) The location where the motor vehicle fuel, alcohol, or
aircraft jet fuel was delivered.
(c) The date of delivery.
(d) Any other information required by the board for the proper
administration of this part. The train operator shall file the report
on or before the last day of the month following the monthly period
to which it relates. To facilitate the administration of this part,
the board may require the filing of the reports for other than
monthly periods. Reports shall be authenticated in a form or pursuant
to methods as may be prescribed by the board.
7653. (a) Each person subject to the tax imposed under Section
7361, on or before February 28, 2002, shall prepare and file with the
board, on forms prescribed by the board, a return showing the total
number of gallons of motor vehicle fuel owned by the person on
January 1, 2002, for which a tax has not been imposed under Part 2
(commencing with Section 7301) as in effect on December 31, 2001, the
amount of the tax imposed, and any other information that the board
deems necessary for the proper administration of this part. The
return shall be accompanied by a remittance payable to the Controller
in the amount of tax due.
(b) Any distributor, as defined in paragraph (3) of subdivision
(b) of Section 7361, who has tax-paid motor vehicle fuel in the bulk
transfer/terminal system on January 1, 2002, which was purchased
prior to January 1, 2002, shall report the tax-paid gallons on the
subdivision (a) return. The amount of taxes paid on the tax-paid
gallons shall constitute a credit against the amount of taxes due and
payable on the subdivision (a) return, or on the supplier's January
2002 return required under Section 7651, and for each succeeding
return until the credit is fully utilized.
7653.1. On or before August 31, 2010, each person subject to the
storage tax imposed under Section 7361.1 shall prepare and file with
the board, in a form prescribed by the board, a return showing the
total number of gallons of tax-paid motor vehicle fuel, other than
aviation gasoline, owned by the person on July 1, 2010, the amount of
the storage tax, and any other information that the board deems
necessary for the proper administration of this part. The return
shall be accompanied by a remittance payable to the Controller in the
amount of tax due.
7655. (a) Any person who fails to pay the amount of tax shown to be
due by his or her return on or before the last day of the month
following the monthly period to which it relates shall pay a penalty
of 10 percent of the tax, together with interest on that tax at the
modified adjusted rate per month, or fraction thereof, established
pursuant to Section 6591.5, from the date on which the tax became due
and payable to the state until the date of payment.
(b) Any supplier who fails to file a return in accordance with the
due date set forth in Section 7651 shall pay a penalty of 10 percent
of the amount of the tax, exclusive of prepayments, with respect to
the period for which the return is required.
(c) The penalties imposed by this section shall be limited to a
maximum of 10 percent of the tax for which the return is required,
exclusive of any prepayments, for any one return.
7655.5. (a) If the board finds, taking into account all facts and
circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the tax or
prepayment was due until the date of payment, if all of the following
occur:
(1) The payment of tax or the prepayment was made one business day
after the date the tax or prepayment was due.
(2) The person was granted relief from all penalties that applied
to that payment of tax or prepayment.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section, "business day" means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, a determination where no return has been
filed, or a jeopardy determination issued by the board.
(f) This section shall only apply to electronic payments or
prepayments of taxes.
(g) This section shall be operative only until January 1, 2016.
7656. The board for good cause may extend for not to exceed one
month the time for making any report or return or paying any tax
required under this part. The extension may be granted at any time if
a request therefor is filed with the board within or prior to the
period for which the extension may be granted.
Any person to whom an extension is granted shall pay, in addition
to the tax, interest at the modified adjusted rate per month, or
fraction thereof, established pursuant to Section 6591.5, from the
date on which the tax would have been due without the extension to
the date of payment.
7657. (a) If the board finds that a person's failure to make a
timely report, return, or payment is due to reasonable cause and
circumstances beyond the person's control, and occurred
notwithstanding the exercise of ordinary care and the absence of
willful neglect, the person may be relieved of the penalty provided
by Sections 7655, 7659.5, 7659.6, 7659.9 7660, 7705, and 7713.
(b) Except as provided in subdivision (c), any person seeking to
be relieved of the penalty shall file with the board a statement
under penalty of perjury setting forth the facts upon which he or she
bases his or her claim for relief.
(c) The board shall establish criteria that provide for efficient
resolution of requests for relief pursuant to this section.
7657.1. (a) If the board finds that a person's failure to make a
timely return or payment is due to the person's reasonable reliance
on written advice from the board, the person may be relieved of the
taxes imposed by this part and any penalty or interest added thereto.
(b) For purposes of this section, a person's failure to make a
timely return or payment shall be considered to be due to reasonable
reliance on written advice from the board, only if the board finds
that all of the following conditions are satisfied:
(1) The person requested in writing that the board advise him or
her whether a particular activity or transaction is subject to tax
under this part. The specific facts and circumstances of the activity
or transaction shall be fully described in the request.
(2) The board responded in writing to the person regarding the
written request for advice, stating whether or not the described
activity or transaction is subject to tax, or stating the conditions
under which the activity or transaction is subject to tax.
(3) The liability for taxes applied to a particular activity or
transaction which occurred before either of the following:
(A) Before the board rescinded or modified the advice so given, by
sending written notice to the person of the rescinded or modified
advice.
(B) Before a change in statutory or constitutional law, a change
in the board's regulations, or a final decision of a court, which
renders the board's earlier written advice no longer valid.
(c) Any person seeking relief under this section shall file with
the board all of the following:
(1) A copy of the person's written request to the board and a copy
of the board's written advice.
(2) A statement under penalty of perjury setting forth the facts
on which the claim for relief is based.
(3) Any other information which the board may require.
(d) Only the person making the written request shall be entitled
to rely on the board's written advice to that person.
7657.5. (a) Under regulations prescribed by the board, if:
(1) A tax liability under this part was understated by a failure
to file a return required to be filed under this part, by the
omission of an amount properly includable therein, or by erroneous
deductions or credits claimed on a return, and the understatement of
tax liability is attributable to one spouse; or any amount of the tax
reported on a return was unpaid and the nonpayment of the reported
tax liability is attributable to one spouse.
(2) The other spouse establishes that he or she did not know of,
and had no reason to know of, that understatement or nonpayment.
(3) Taking into account whether or not the other spouse
significantly benefited directly or indirectly from the
understatement or the nonpayment and taking into account all other
facts and circumstances, it is inequitable to hold the other spouse
liable for the deficiency in tax attributable to that understatement
or nonpayment, then the other spouse shall be relieved of liability
for tax (including interest, penalties, and other amounts) to the
extent that the liability is attributable to that understatement or
nonpayment of tax.
(b) For purposes of this section, the determination of the spouse
to whom items of understatement or nonpayment are attributable shall
be made without regard to community property laws.
(c) This section shall apply to all calendar months subject to the
provisions of this part, but shall not apply to any calendar month
that is more than five years from the final date on the board-issued
determination, five years from the return due date for nonpayment on
a return, or one year from the first contact with the spouse making a
claim under this section; or that has been closed by res judicata,
whichever is later.
(d) For purposes of paragraph (2) of subdivision (a), "reason to
know" means whether or not a reasonably prudent person would have had
reason to know of the understatement or nonpayment.
(e) For purposes of this section, with respect to a failure to
file a return or an omission of an item from the return,
"attributable to one spouse" may be determined by whether a spouse
rendered substantial service as a supplier entering, removing, or
selling taxable motor vehicle fuel or an aircraft jet fuel dealer
selling or using taxable aircraft jet fuel to which the
understatement is attributable. If neither spouse rendered
substantial services as a supplier or aircraft jet fuel dealer, then
the attribution of applicable items of understatement shall be
treated as community property. An erroneous deduction or credit shall
be attributable to the spouse who caused that deduction or credit to
be entered on the return.
(f) Under procedures prescribed by the board, if, taking into
account all the facts and circumstances, it is inequitable to hold
the other spouse liable for any unpaid tax or any deficiency (or any
portion of either) attributable to any item for which relief is not
available under subdivision (a), the board may relieve the other
spouse of that liability.
(g) For purposes of this section, registered domestic partners, as
defined in Section 297 of the Family Code, have the same rights,
protections, and benefits as provided by this section, and are
subject to the same responsibilities, obligations, and duties as
imposed by this section, as are granted to and imposed upon spouses.
(h) The relief provided by this section shall apply retroactively
to liabilities arising prior to the effective date of this section.
7658. If the board finds that a person's failure to make a timely
return or payment was due to a disaster, and occurred notwithstanding
the exercise of ordinary care and the absence of willful neglect,
the person may be relieved of the interest provided by Sections 7655,
7656, 7659.9, 7661, and 7706. Any person seeking to be relieved of
the interest shall file with the board a statement under penalty of
perjury setting forth the facts upon which he or she bases his or her
claim for relief.
7658.1. (a) The board, in its discretion, may relieve all or any
part of the interest imposed on a person by this part where the
failure to pay tax is due in whole or in part to an unreasonable
error or delay by an employee of the board acting in his or her
official capacity.
(b) For purposes of this section, an error or delay shall be
deemed to have occurred only if no significant aspect of the error or
delay is attributable to an act of, or a failure to act by, the
person.
(c) Any person seeking relief under this section shall file with
the board a statement under penalty of perjury setting forth the
facts on which the claim for relief is based and any other
information which the board may require.
(d) The board may grant relief only for interest imposed on tax
liabilities that arise during taxable periods commencing on or after
January 1, 2000.
7658.5. Every payment on a delinquent tax shall be applied as
follows:
(a) First, to any interest due on the tax.
(b) Second, to any penalty imposed by this part.
(c) The balance, if any, to the tax itself.
7651. Each supplier shall prepare and file with the board a return
in the form as prescribed by the board, which may include, but not be
limited to, electronic media showing the total number of gallons of
motor vehicle fuel removed, sold, or entered within this state during
each calendar month, or that monthly period ended during that
calendar month as the board may authorize, the amount of tax due for
the month covered by the return, and other information as the board
deems necessary for the proper administration of this part. The
person shall file the return on or before the last day of the month
following the monthly period to which it relates, together with a
remittance payable to the Controller for the amount of tax due for
that period less whatever amounts may have been paid theretofore for
the same period because of returns, prepayment forms, and payments
made on a weekly basis. To facilitate the administration of this
part, the board may require the filing of the returns for other than
monthly periods. Returns shall be authenticated in a form or pursuant
to methods as may be prescribed by the board.
7652.5. (a) Each terminal operator shall prepare and file with the
board a report in the form as prescribed by the board, which may
include, but not be limited to, electronic media showing, for the
calendar month, or that monthly period ended during the calendar
month as the board may authorize, the following:
(1) The name and license number of each person that is a position
holder at each terminal it operates;
(2) The amount of motor vehicle fuel received at each terminal it
operates;
(3) The identity of each position holder with respect to the rack
removals of motor vehicle fuel from each terminal it operates and the
volume and dates of the removals;
(4) The amount of motor vehicle fuel stored at each terminal it
operates;
(5) The destination (by state) of all motor vehicle fuel removed
at a terminal rack of each terminal it operates, to the extent that
information has been provided to the terminal operator; and
(6) Any other information required by the board for the proper
administration of this part.
The terminal operator shall file the report on or before the last
day of the month following the monthly period to which it relates. To
facilitate the administration of this part, the board may require
the filing of the reports for other than monthly periods. Reports
shall be authenticated in a form or pursuant to methods as may be
prescribed by the board.
(b) Upon written approval of the board, a terminal operator may
satisfy the requirements of subdivision (a) above by executing and
providing to the board a consent and authorization for the Internal
Revenue Service to provide to the board under Section 6103 of the
Internal Revenue Code, the return filed by the terminal operator
under Section 48.4101-2 of Title 26 of the Code of Federal
Regulations. The board may, in its sole discretion, rescind its
approval and require a terminal operator to file reports as specified
in subdivision (a).
7652.7. (a) Each pipeline operator and vessel operator shall
prepare and file with the board a report in the form as prescribed by
the board, which may include, but not be limited to, electronic
media showing, for the calendar month, or that monthly period ended
during the calendar month as the board may authorize, all of the
following:
(1) The amount of motor vehicle fuel delivered to each terminal or
refinery.
(2) The location of the terminal or refinery where the motor
vehicle fuel was delivered.
(3) The date of delivery.
(4) Any other information required by the board for the proper
administration of this part.
The pipeline operator and vessel operator shall file the report on
or before the last day of the month following the monthly period to
which it relates. To facilitate the administration of this part, the
board may require the filing of the reports for other than monthly
periods. Reports shall be authenticated in a form or pursuant to
methods as may be prescribed by the board.
(b) Upon written approval of the board, a pipeline operator and
vessel operator may satisfy the requirements of subdivision (a) by
executing and providing to the board a consent and authorization for
the Internal Revenue Service to provide to the board under Section
6103 of the Internal Revenue Code, the return filed by the pipeline
operator and vessel operator under Section 48.4101-2 of Title 26 of
the Code of Federal Regulations. The board may, in its sole
discretion, rescind its approval and require a pipeline operator and
vessel operator to file reports as specified in subdivision (a).
7652.8. Each train operator shall prepare and file with the board a
report in the form as prescribed by the board, which may include,
but not be limited to, electronic media showing, for the calendar
month, or that monthly period ended during the calendar month as the
board may authorize, all of the following:
(a) The amount of motor vehicle fuel, alcohol, and aircraft jet
fuel delivered into, out of, or within this state.
(b) The location where the motor vehicle fuel, alcohol, or
aircraft jet fuel was delivered.
(c) The date of delivery.
(d) Any other information required by the board for the proper
administration of this part. The train operator shall file the report
on or before the last day of the month following the monthly period
to which it relates. To facilitate the administration of this part,
the board may require the filing of the reports for other than
monthly periods. Reports shall be authenticated in a form or pursuant
to methods as may be prescribed by the board.
7653. (a) Each person subject to the tax imposed under Section
7361, on or before February 28, 2002, shall prepare and file with the
board, on forms prescribed by the board, a return showing the total
number of gallons of motor vehicle fuel owned by the person on
January 1, 2002, for which a tax has not been imposed under Part 2
(commencing with Section 7301) as in effect on December 31, 2001, the
amount of the tax imposed, and any other information that the board
deems necessary for the proper administration of this part. The
return shall be accompanied by a remittance payable to the Controller
in the amount of tax due.
(b) Any distributor, as defined in paragraph (3) of subdivision
(b) of Section 7361, who has tax-paid motor vehicle fuel in the bulk
transfer/terminal system on January 1, 2002, which was purchased
prior to January 1, 2002, shall report the tax-paid gallons on the
subdivision (a) return. The amount of taxes paid on the tax-paid
gallons shall constitute a credit against the amount of taxes due and
payable on the subdivision (a) return, or on the supplier's January
2002 return required under Section 7651, and for each succeeding
return until the credit is fully utilized.
7653.1. On or before August 31, 2010, each person subject to the
storage tax imposed under Section 7361.1 shall prepare and file with
the board, in a form prescribed by the board, a return showing the
total number of gallons of tax-paid motor vehicle fuel, other than
aviation gasoline, owned by the person on July 1, 2010, the amount of
the storage tax, and any other information that the board deems
necessary for the proper administration of this part. The return
shall be accompanied by a remittance payable to the Controller in the
amount of tax due.
7655. (a) Any person who fails to pay the amount of tax shown to be
due by his or her return on or before the last day of the month
following the monthly period to which it relates shall pay a penalty
of 10 percent of the tax, together with interest on that tax at the
modified adjusted rate per month, or fraction thereof, established
pursuant to Section 6591.5, from the date on which the tax became due
and payable to the state until the date of payment.
(b) Any supplier who fails to file a return in accordance with the
due date set forth in Section 7651 shall pay a penalty of 10 percent
of the amount of the tax, exclusive of prepayments, with respect to
the period for which the return is required.
(c) The penalties imposed by this section shall be limited to a
maximum of 10 percent of the tax for which the return is required,
exclusive of any prepayments, for any one return.
7655.5. (a) If the board finds, taking into account all facts and
circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the tax or
prepayment was due until the date of payment, if all of the following
occur:
(1) The payment of tax or the prepayment was made one business day
after the date the tax or prepayment was due.
(2) The person was granted relief from all penalties that applied
to that payment of tax or prepayment.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section, "business day" means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, a determination where no return has been
filed, or a jeopardy determination issued by the board.
(f) This section shall only apply to electronic payments or
prepayments of taxes.
(g) This section shall be operative only until January 1, 2016.
7656. The board for good cause may extend for not to exceed one
month the time for making any report or return or paying any tax
required under this part. The extension may be granted at any time if
a request therefor is filed with the board within or prior to the
period for which the extension may be granted.
Any person to whom an extension is granted shall pay, in addition
to the tax, interest at the modified adjusted rate per month, or
fraction thereof, established pursuant to Section 6591.5, from the
date on which the tax would have been due without the extension to
the date of payment.
7657. (a) If the board finds that a person's failure to make a
timely report, return, or payment is due to reasonable cause and
circumstances beyond the person's control, and occurred
notwithstanding the exercise of ordinary care and the absence of
willful neglect, the person may be relieved of the penalty provided
by Sections 7655, 7659.5, 7659.6, 7659.9 7660, 7705, and 7713.
(b) Except as provided in subdivision (c), any person seeking to
be relieved of the penalty shall file with the board a statement
under penalty of perjury setting forth the facts upon which he or she
bases his or her claim for relief.
(c) The board shall establish criteria that provide for efficient
resolution of requests for relief pursuant to this section.
7657.1. (a) If the board finds that a person's failure to make a
timely return or payment is due to the person's reasonable reliance
on written advice from the board, the person may be relieved of the
taxes imposed by this part and any penalty or interest added thereto.
(b) For purposes of this section, a person's failure to make a
timely return or payment shall be considered to be due to reasonable
reliance on written advice from the board, only if the board finds
that all of the following conditions are satisfied:
(1) The person requested in writing that the board advise him or
her whether a particular activity or transaction is subject to tax
under this part. The specific facts and circumstances of the activity
or transaction shall be fully described in the request.
(2) The board responded in writing to the person regarding the
written request for advice, stating whether or not the described
activity or transaction is subject to tax, or stating the conditions
under which the activity or transaction is subject to tax.
(3) The liability for taxes applied to a particular activity or
transaction which occurred before either of the following:
(A) Before the board rescinded or modified the advice so given, by
sending written notice to the person of the rescinded or modified
advice.
(B) Before a change in statutory or constitutional law, a change
in the board's regulations, or a final decision of a court, which
renders the board's earlier written advice no longer valid.
(c) Any person seeking relief under this section shall file with
the board all of the following:
(1) A copy of the person's written request to the board and a copy
of the board's written advice.
(2) A statement under penalty of perjury setting forth the facts
on which the claim for relief is based.
(3) Any other information which the board may require.
(d) Only the person making the written request shall be entitled
to rely on the board's written advice to that person.
7657.5. (a) Under regulations prescribed by the board, if:
(1) A tax liability under this part was understated by a failure
to file a return required to be filed under this part, by the
omission of an amount properly includable therein, or by erroneous
deductions or credits claimed on a return, and the understatement of
tax liability is attributable to one spouse; or any amount of the tax
reported on a return was unpaid and the nonpayment of the reported
tax liability is attributable to one spouse.
(2) The other spouse establishes that he or she did not know of,
and had no reason to know of, that understatement or nonpayment.
(3) Taking into account whether or not the other spouse
significantly benefited directly or indirectly from the
understatement or the nonpayment and taking into account all other
facts and circumstances, it is inequitable to hold the other spouse
liable for the deficiency in tax attributable to that understatement
or nonpayment, then the other spouse shall be relieved of liability
for tax (including interest, penalties, and other amounts) to the
extent that the liability is attributable to that understatement or
nonpayment of tax.
(b) For purposes of this section, the determination of the spouse
to whom items of understatement or nonpayment are attributable shall
be made without regard to community property laws.
(c) This section shall apply to all calendar months subject to the
provisions of this part, but shall not apply to any calendar month
that is more than five years from the final date on the board-issued
determination, five years from the return due date for nonpayment on
a return, or one year from the first contact with the spouse making a
claim under this section; or that has been closed by res judicata,
whichever is later.
(d) For purposes of paragraph (2) of subdivision (a), "reason to
know" means whether or not a reasonably prudent person would have had
reason to know of the understatement or nonpayment.
(e) For purposes of this section, with respect to a failure to
file a return or an omission of an item from the return,
"attributable to one spouse" may be determined by whether a spouse
rendered substantial service as a supplier entering, removing, or
selling taxable motor vehicle fuel or an aircraft jet fuel dealer
selling or using taxable aircraft jet fuel to which the
understatement is attributable. If neither spouse rendered
substantial services as a supplier or aircraft jet fuel dealer, then
the attribution of applicable items of understatement shall be
treated as community property. An erroneous deduction or credit shall
be attributable to the spouse who caused that deduction or credit to
be entered on the return.
(f) Under procedures prescribed by the board, if, taking into
account all the facts and circumstances, it is inequitable to hold
the other spouse liable for any unpaid tax or any deficiency (or any
portion of either) attributable to any item for which relief is not
available under subdivision (a), the board may relieve the other
spouse of that liability.
(g) For purposes of this section, registered domestic partners, as
defined in Section 297 of the Family Code, have the same rights,
protections, and benefits as provided by this section, and are
subject to the same responsibilities, obligations, and duties as
imposed by this section, as are granted to and imposed upon spouses.
(h) The relief provided by this section shall apply retroactively
to liabilities arising prior to the effective date of this section.
7658. If the board finds that a person's failure to make a timely
return or payment was due to a disaster, and occurred notwithstanding
the exercise of ordinary care and the absence of willful neglect,
the person may be relieved of the interest provided by Sections 7655,
7656, 7659.9, 7661, and 7706. Any person seeking to be relieved of
the interest shall file with the board a statement under penalty of
perjury setting forth the facts upon which he or she bases his or her
claim for relief.
7658.1. (a) The board, in its discretion, may relieve all or any
part of the interest imposed on a person by this part where the
failure to pay tax is due in whole or in part to an unreasonable
error or delay by an employee of the board acting in his or her
official capacity.
(b) For purposes of this section, an error or delay shall be
deemed to have occurred only if no significant aspect of the error or
delay is attributable to an act of, or a failure to act by, the
person.
(c) Any person seeking relief under this section shall file with
the board a statement under penalty of perjury setting forth the
facts on which the claim for relief is based and any other
information which the board may require.
(d) The board may grant relief only for interest imposed on tax
liabilities that arise during taxable periods commencing on or after
January 1, 2000.
7658.5. Every payment on a delinquent tax shall be applied as
follows:
(a) First, to any interest due on the tax.
(b) Second, to any penalty imposed by this part.
(c) The balance, if any, to the tax itself.
7651. Each supplier shall prepare and file with the board a return
in the form as prescribed by the board, which may include, but not be
limited to, electronic media showing the total number of gallons of
motor vehicle fuel removed, sold, or entered within this state during
each calendar month, or that monthly period ended during that
calendar month as the board may authorize, the amount of tax due for
the month covered by the return, and other information as the board
deems necessary for the proper administration of this part. The
person shall file the return on or before the last day of the month
following the monthly period to which it relates, together with a
remittance payable to the Controller for the amount of tax due for
that period less whatever amounts may have been paid theretofore for
the same period because of returns, prepayment forms, and payments
made on a weekly basis. To facilitate the administration of this
part, the board may require the filing of the returns for other than
monthly periods. Returns shall be authenticated in a form or pursuant
to methods as may be prescribed by the board.
7652.5. (a) Each terminal operator shall prepare and file with the
board a report in the form as prescribed by the board, which may
include, but not be limited to, electronic media showing, for the
calendar month, or that monthly period ended during the calendar
month as the board may authorize, the following:
(1) The name and license number of each person that is a position
holder at each terminal it operates;
(2) The amount of motor vehicle fuel received at each terminal it
operates;
(3) The identity of each position holder with respect to the rack
removals of motor vehicle fuel from each terminal it operates and the
volume and dates of the removals;
(4) The amount of motor vehicle fuel stored at each terminal it
operates;
(5) The destination (by state) of all motor vehicle fuel removed
at a terminal rack of each terminal it operates, to the extent that
information has been provided to the terminal operator; and
(6) Any other information required by the board for the proper
administration of this part.
The terminal operator shall file the report on or before the last
day of the month following the monthly period to which it relates. To
facilitate the administration of this part, the board may require
the filing of the reports for other than monthly periods. Reports
shall be authenticated in a form or pursuant to methods as may be
prescribed by the board.
(b) Upon written approval of the board, a terminal operator may
satisfy the requirements of subdivision (a) above by executing and
providing to the board a consent and authorization for the Internal
Revenue Service to provide to the board under Section 6103 of the
Internal Revenue Code, the return filed by the terminal operator
under Section 48.4101-2 of Title 26 of the Code of Federal
Regulations. The board may, in its sole discretion, rescind its
approval and require a terminal operator to file reports as specified
in subdivision (a).
7652.7. (a) Each pipeline operator and vessel operator shall
prepare and file with the board a report in the form as prescribed by
the board, which may include, but not be limited to, electronic
media showing, for the calendar month, or that monthly period ended
during the calendar month as the board may authorize, all of the
following:
(1) The amount of motor vehicle fuel delivered to each terminal or
refinery.
(2) The location of the terminal or refinery where the motor
vehicle fuel was delivered.
(3) The date of delivery.
(4) Any other information required by the board for the proper
administration of this part.
The pipeline operator and vessel operator shall file the report on
or before the last day of the month following the monthly period to
which it relates. To facilitate the administration of this part, the
board may require the filing of the reports for other than monthly
periods. Reports shall be authenticated in a form or pursuant to
methods as may be prescribed by the board.
(b) Upon written approval of the board, a pipeline operator and
vessel operator may satisfy the requirements of subdivision (a) by
executing and providing to the board a consent and authorization for
the Internal Revenue Service to provide to the board under Section
6103 of the Internal Revenue Code, the return filed by the pipeline
operator and vessel operator under Section 48.4101-2 of Title 26 of
the Code of Federal Regulations. The board may, in its sole
discretion, rescind its approval and require a pipeline operator and
vessel operator to file reports as specified in subdivision (a).
7652.8. Each train operator shall prepare and file with the board a
report in the form as prescribed by the board, which may include,
but not be limited to, electronic media showing, for the calendar
month, or that monthly period ended during the calendar month as the
board may authorize, all of the following:
(a) The amount of motor vehicle fuel, alcohol, and aircraft jet
fuel delivered into, out of, or within this state.
(b) The location where the motor vehicle fuel, alcohol, or
aircraft jet fuel was delivered.
(c) The date of delivery.
(d) Any other information required by the board for the proper
administration of this part. The train operator shall file the report
on or before the last day of the month following the monthly period
to which it relates. To facilitate the administration of this part,
the board may require the filing of the reports for other than
monthly periods. Reports shall be authenticated in a form or pursuant
to methods as may be prescribed by the board.
7653. (a) Each person subject to the tax imposed under Section
7361, on or before February 28, 2002, shall prepare and file with the
board, on forms prescribed by the board, a return showing the total
number of gallons of motor vehicle fuel owned by the person on
January 1, 2002, for which a tax has not been imposed under Part 2
(commencing with Section 7301) as in effect on December 31, 2001, the
amount of the tax imposed, and any other information that the board
deems necessary for the proper administration of this part. The
return shall be accompanied by a remittance payable to the Controller
in the amount of tax due.
(b) Any distributor, as defined in paragraph (3) of subdivision
(b) of Section 7361, who has tax-paid motor vehicle fuel in the bulk
transfer/terminal system on January 1, 2002, which was purchased
prior to January 1, 2002, shall report the tax-paid gallons on the
subdivision (a) return. The amount of taxes paid on the tax-paid
gallons shall constitute a credit against the amount of taxes due and
payable on the subdivision (a) return, or on the supplier's January
2002 return required under Section 7651, and for each succeeding
return until the credit is fully utilized.
7653.1. On or before August 31, 2010, each person subject to the
storage tax imposed under Section 7361.1 shall prepare and file with
the board, in a form prescribed by the board, a return showing the
total number of gallons of tax-paid motor vehicle fuel, other than
aviation gasoline, owned by the person on July 1, 2010, the amount of
the storage tax, and any other information that the board deems
necessary for the proper administration of this part. The return
shall be accompanied by a remittance payable to the Controller in the
amount of tax due.
7655. (a) Any person who fails to pay the amount of tax shown to be
due by his or her return on or before the last day of the month
following the monthly period to which it relates shall pay a penalty
of 10 percent of the tax, together with interest on that tax at the
modified adjusted rate per month, or fraction thereof, established
pursuant to Section 6591.5, from the date on which the tax became due
and payable to the state until the date of payment.
(b) Any supplier who fails to file a return in accordance with the
due date set forth in Section 7651 shall pay a penalty of 10 percent
of the amount of the tax, exclusive of prepayments, with respect to
the period for which the return is required.
(c) The penalties imposed by this section shall be limited to a
maximum of 10 percent of the tax for which the return is required,
exclusive of any prepayments, for any one return.
7655.5. (a) If the board finds, taking into account all facts and
circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the tax or
prepayment was due until the date of payment, if all of the following
occur:
(1) The payment of tax or the prepayment was made one business day
after the date the tax or prepayment was due.
(2) The person was granted relief from all penalties that applied
to that payment of tax or prepayment.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section, "business day" means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, a determination where no return has been
filed, or a jeopardy determination issued by the board.
(f) This section shall only apply to electronic payments or
prepayments of taxes.
(g) This section shall be operative only until January 1, 2016.
7656. The board for good cause may extend for not to exceed one
month the time for making any report or return or paying any tax
required under this part. The extension may be granted at any time if
a request therefor is filed with the board within or prior to the
period for which the extension may be granted.
Any person to whom an extension is granted shall pay, in addition
to the tax, interest at the modified adjusted rate per month, or
fraction thereof, established pursuant to Section 6591.5, from the
date on which the tax would have been due without the extension to
the date of payment.
7657. (a) If the board finds that a person's failure to make a
timely report, return, or payment is due to reasonable cause and
circumstances beyond the person's control, and occurred
notwithstanding the exercise of ordinary care and the absence of
willful neglect, the person may be relieved of the penalty provided
by Sections 7655, 7659.5, 7659.6, 7659.9 7660, 7705, and 7713.
(b) Except as provided in subdivision (c), any person seeking to
be relieved of the penalty shall file with the board a statement
under penalty of perjury setting forth the facts upon which he or she
bases his or her claim for relief.
(c) The board shall establish criteria that provide for efficient
resolution of requests for relief pursuant to this section.
7657.1. (a) If the board finds that a person's failure to make a
timely return or payment is due to the person's reasonable reliance
on written advice from the board, the person may be relieved of the
taxes imposed by this part and any penalty or interest added thereto.
(b) For purposes of this section, a person's failure to make a
timely return or payment shall be considered to be due to reasonable
reliance on written advice from the board, only if the board finds
that all of the following conditions are satisfied:
(1) The person requested in writing that the board advise him or
her whether a particular activity or transaction is subject to tax
under this part. The specific facts and circumstances of the activity
or transaction shall be fully described in the request.
(2) The board responded in writing to the person regarding the
written request for advice, stating whether or not the described
activity or transaction is subject to tax, or stating the conditions
under which the activity or transaction is subject to tax.
(3) The liability for taxes applied to a particular activity or
transaction which occurred before either of the following:
(A) Before the board rescinded or modified the advice so given, by
sending written notice to the person of the rescinded or modified
advice.
(B) Before a change in statutory or constitutional law, a change
in the board's regulations, or a final decision of a court, which
renders the board's earlier written advice no longer valid.
(c) Any person seeking relief under this section shall file with
the board all of the following:
(1) A copy of the person's written request to the board and a copy
of the board's written advice.
(2) A statement under penalty of perjury setting forth the facts
on which the claim for relief is based.
(3) Any other information which the board may require.
(d) Only the person making the written request shall be entitled
to rely on the board's written advice to that person.
7657.5. (a) Under regulations prescribed by the board, if:
(1) A tax liability under this part was understated by a failure
to file a return required to be filed under this part, by the
omission of an amount properly includable therein, or by erroneous
deductions or credits claimed on a return, and the understatement of
tax liability is attributable to one spouse; or any amount of the tax
reported on a return was unpaid and the nonpayment of the reported
tax liability is attributable to one spouse.
(2) The other spouse establishes that he or she did not know of,
and had no reason to know of, that understatement or nonpayment.
(3) Taking into account whether or not the other spouse
significantly benefited directly or indirectly from the
understatement or the nonpayment and taking into account all other
facts and circumstances, it is inequitable to hold the other spouse
liable for the deficiency in tax attributable to that understatement
or nonpayment, then the other spouse shall be relieved of liability
for tax (including interest, penalties, and other amounts) to the
extent that the liability is attributable to that understatement or
nonpayment of tax.
(b) For purposes of this section, the determination of the spouse
to whom items of understatement or nonpayment are attributable shall
be made without regard to community property laws.
(c) This section shall apply to all calendar months subject to the
provisions of this part, but shall not apply to any calendar month
that is more than five years from the final date on the board-issued
determination, five years from the return due date for nonpayment on
a return, or one year from the first contact with the spouse making a
claim under this section; or that has been closed by res judicata,
whichever is later.
(d) For purposes of paragraph (2) of subdivision (a), "reason to
know" means whether or not a reasonably prudent person would have had
reason to know of the understatement or nonpayment.
(e) For purposes of this section, with respect to a failure to
file a return or an omission of an item from the return,
"attributable to one spouse" may be determined by whether a spouse
rendered substantial service as a supplier entering, removing, or
selling taxable motor vehicle fuel or an aircraft jet fuel dealer
selling or using taxable aircraft jet fuel to which the
understatement is attributable. If neither spouse rendered
substantial services as a supplier or aircraft jet fuel dealer, then
the attribution of applicable items of understatement shall be
treated as community property. An erroneous deduction or credit shall
be attributable to the spouse who caused that deduction or credit to
be entered on the return.
(f) Under procedures prescribed by the board, if, taking into
account all the facts and circumstances, it is inequitable to hold
the other spouse liable for any unpaid tax or any deficiency (or any
portion of either) attributable to any item for which relief is not
available under subdivision (a), the board may relieve the other
spouse of that liability.
(g) For purposes of this section, registered domestic partners, as
defined in Section 297 of the Family Code, have the same rights,
protections, and benefits as provided by this section, and are
subject to the same responsibilities, obligations, and duties as
imposed by this section, as are granted to and imposed upon spouses.
(h) The relief provided by this section shall apply retroactively
to liabilities arising prior to the effective date of this section.
7658. If the board finds that a person's failure to make a timely
return or payment was due to a disaster, and occurred notwithstanding
the exercise of ordinary care and the absence of willful neglect,
the person may be relieved of the interest provided by Sections 7655,
7656, 7659.9, 7661, and 7706. Any person seeking to be relieved of
the interest shall file with the board a statement under penalty of
perjury setting forth the facts upon which he or she bases his or her
claim for relief.
7658.1. (a) The board, in its discretion, may relieve all or any
part of the interest imposed on a person by this part where the
failure to pay tax is due in whole or in part to an unreasonable
error or delay by an employee of the board acting in his or her
official capacity.
(b) For purposes of this section, an error or delay shall be
deemed to have occurred only if no significant aspect of the error or
delay is attributable to an act of, or a failure to act by, the
person.
(c) Any person seeking relief under this section shall file with
the board a statement under penalty of perjury setting forth the
facts on which the claim for relief is based and any other
information which the board may require.
(d) The board may grant relief only for interest imposed on tax
liabilities that arise during taxable periods commencing on or after
January 1, 2000.
7658.5. Every payment on a delinquent tax shall be applied as
follows:
(a) First, to any interest due on the tax.
(b) Second, to any penalty imposed by this part.
(c) The balance, if any, to the tax itself.
