Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2012
 

Cigarette and Tobacco Products Tax Law

CHAPTER 3. LICENSES, BONDS AND REGISTRATION.

Article 1. Licenses and Bonds

Section 30142

30142. Amount of bond. (a) The board shall fix the amount of the security required of any distributor and may increase or reduce the amount at any time. A minimum security in the amount of one thousand dollars ($1,000) shall be furnished by every distributor that is required to be licensed.

(b) Except as provided in subdivision (d), if a distributor desires to defer payments for stamps or meter register settings, as provided in Article 2 (commencing with Section 30166) of Chapter 3.5, the board shall require a security as follows:

(1) If a distributor elects, under Section 30168, to make payments on a monthly basis, the board shall require a security equal to not less than 70 percent of the amount and no more than twice the amount, as fixed by the board, of the distributor's purchases of stamps and meter register settings for which payment may be deferred.

(2) If a distributor elects, under Section 30168, to make payments on a twice-monthly basis, the board shall require a security equal to not less than 50 percent of the amount and no more than twice the amount, as fixed by the board, of the distributor's purchases of stamps and meter register settings for which payment may be deferred.

(3) If a distributor elects, under Section 30168, to make payments on a weekly basis, the board shall require a security equal to not less than 25 percent of the amount and no more than twice the amount, as fixed by the board, of the distributor's purchases of stamps and meter register settings for which payment may be deferred.

(c) The security required by the board pursuant to subdivision (b) may be in the form of any of the following, in the amount required by paragraph (1) or (2) of subdivision (b):

(1) Cash, or a cash equivalent.

(2) A surety bond.

(d) Upon authorization by the board, no additional security shall be required for a distributor that desires to defer payments for stamps or meter register settings, as provided in Article 2 (commencing with Section 30166) of Chapter 3.5, if the distributor's average monthly purchase of stamps or meter register settings for the previous 12 months does not exceed seventy-two thousand (72,000) stamps or meter register settings and if the distributor meets all of the following:

(1) Has been licensed under this part for a minimum of five years.

(2) Has not been delinquent in the filing of any reports or returns required under this part for the preceding three consecutive years.

(3) Has not been delinquent in the payment of any tax under this part, or for any other tax or fee administered or collected by the board, for the preceding three consecutive years.

(4) Provides to the board and updates, as necessary, an electronic mail address for the purpose of receiving payment information, including, but not limited to, amounts owing for stamps and meter register settings purchased.

(5) Any other criteria the board may require.

History.—Stats. 1961, p. 2314, operative July 16, 1961, added the second and third sentences. Stats. 1967, p. 2519, operative August 1, 1967, substituted "seventy percent (70%) of" for "twice" and deleted "in a monthly period" following "payment may be deferred" in the last sentence. Stats. 1982, Ch. 454, in effect January 1, 1983, added "(commencing with Section 30161)" after "Article 2," deleted "of this part" after "Chapter 3.5," and substituted "70 percent" for "seventy percent (70%)" after "equal to" in the third sentence. Stats. 1993, Ch. 1113, in effect January 1, 1994, substituted "security" for "bond or bonds" following "amount of the" in the first sentence and before "in the amount" in the second sentence and following "shall require a" in the last sentence; and added "not less than" before "70 percent" and "and no more than twice the amount" following "of the amount" in the last sentence. Stats. 2003, Ch. 867 (AB 1666), in effect January 1, 2004, established the former first and second sentences as subdivision (a), added "that is" after "by every distributor" in the second sentence of subdivision (a); established the former third sentence as subdivision (b) and subdivision (b)(1), substituted "30166" for "30161" after "commencing with Section", added "as follows:" after "require a security" and added "if a distributor elects . . . require a security" to paragraph (1), and added paragraph (2) to subdivision (b); and added subdivision (c). Stats. 2006, Ch. 70 (AB 2001), in effect January 1, 2007, substituted subdivision (c) for the former subdivision (c) which stated "This section shall remain in effect until January 1, 2007, and as of that date is repealed.". Stats. 2006, Ch. 501 (AB 1749), in effect January 1, 2007, substituted "Except as provided in subdivision (d), if" for "If" before "a distributor desires" and added paragraph (3) to subdivision (b); added subdivision (d).

Note.—SEC. 9. of Stats. 2003. Ch. 867 (AB 1666), effective January 1, 2004, states, The Legislative Analyst, with assistance of, and based on information provided by, the State Board of Equalization, shall, on or before January 1, 2006, prepare a report to the Legislature of the economic impact of this act. The report shall include an evaluation of the State Board of Equalization's ability to collect cigarette tax revenues, additional revenues, if any, generated by the twice-monthly payment program, and the ability of distributors to access security bonds.

30142. Amount of bond. [Repealed by Stats. 2006, Ch. 70 (AB 2001), in effect January 1, 2007.]