Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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460.0000 REIMBURSEMENT FOR SALES TAX—Regulation 1700

Annotation 460.0028

460.0028 Excess Tax Reimbursement—Remitting to the Board. Under Revenue and Taxation Code section 6901.5, when it has been determined that excess tax reimbursement has been collected, retailers must either refund the money to the customer(s) or remit it to the State. Section 6901.5 presupposes that the retailer has not yet remitted the tax to the Board.

In circumstances where the retailer has filed its returns for the applicable tax quarter and remitted the monies to the State, it has complied with its duties under the Sales and Use Tax Law as to sales tax reimbursement. Once the retailer has remitted the tax reimbursement to the Board, the sole legal avenue available for determining the proper application of tax is for the retailer to submit a claim for refund under section 6901, et seq. The Board may only grant a tax refund to the person who paid the tax. If the Board were to deny the claim for refund, the retailer could pursue an action in court for refund of sales tax under section 6933. There is no provision in the law for an action on the part of a nontaxpayer to dispute the application of tax. 1/20/06. (2007–1).