Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2015
Sales and Use Tax Annotations
465.0000 REMEDIES OF TAXPAYERS
(2) Claims for Refund
(1) When sold by a dealer registered with the Department of Motor Vehicles (DMV) the statute of limitations commences to run with the due date of the return of the dealer. For example, a mobile home is sold on September 29, 1976. Tax for the third quarter of 1976 is due and payable October 31, 1976. Accordingly, a claim for refund would have to be filed on or before October 31, 1979, in order to be timely. Since this is a sales tax transaction, the refund claim would have to be filed by the retailer and the amount refunded paid by him/her to the customer.
(2) An individual sells a mobile home on September 29, 1976, to another individual. The transaction is subject to use tax and payable by the purchaser to DMV at the time the application for change of registration is filed with DMV. The mobile home is required to be registered within twenty days after date of sale, but DMV automatically allows an additional ten days before applying penalties. Accordingly, when timely application for transfer of registration is filed with DMV, the liability incurred in September 1976, and, accordingly, the claim for refund should be filed not later than October 31, 1979. If the purchaser made a late application for transfer of registration to DMV and paid the tax to DMV, then the claim for refund should be filed on or before October 31, 1979, unless extended beyond that date by reason of the six month extension for determination or payment.
If the purchaser made the application to DMV and the Board billed the purchaser for use tax, the Board would send the taxpayer a return showing the due date of the return as the last day of the month following the month in which the return is mailed, if that is within one year from the date of purchase. If the return is not filed, then a determination may be issued. Under these circumstances, the Board has set a period for the taxpayer which begins on the last day of the month following the mailing of the return and the claim for refund should be filed on or before three years from that date.
(3) If the Board learns of a person who buys a mobile home and does not pay use tax to DMV or the Board and more than one year has elapsed from the date of purchase, the Board treats the purchaser as being on an annual basis and bills him/her for tax, interest, and penalty as though the return was due on or before the last day of the month following the close of the year (counting the month of purchase as the first twelve months) in which the purchase was made. Accordingly, the taxpayer would have until and including October 31, 1980, to file a claim for refund on the mobile home purchased on September 29, 1976. 1/7/80.