Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Cigarette and Tobacco Products Tax Law

CHAPTER 3.5. STAMPS AND METER MACHINES.1

Article 2. Sale to Distributors

Section 30168

30168. Due date for credit purchases. (a) Except as provided for in subdivision (c), amounts owing for stamps and meter register settings purchased on the deferred-payment basis shall be due and payable based on the distributor's election to make the payment pursuant to subdivision (b). Payment shall be made by a remittance payable to the board.

(b) A distributor shall elect to make the payment required by subdivision (a) on either a monthly, a twice-monthly, or a weekly basis. An election made pursuant to this subdivision shall remain in effect for at least one year from the date the election is made. If the board finds that good cause exists for a distributor's inability to maintain the election for the full year, the board shall authorize the distributor to make a new election, as otherwise authorized by this subdivision, prior to the expiration of the one-year period following the prior election.

(1) If a distributor elects to make the payment required by subdivision (a) on a monthly basis, the distributor shall remit the payment on or before the 25th day of the month following the month in which the stamps and meter register settings were purchased.

(2) If a distributor elects to make the payment required by subdivision (a) on a twice-monthly basis, the distributor shall make two remittances during the month following the month in which the stamps and meter register settings were purchased. The first monthly remittance shall be made on or before the fifth day of the month and shall be equal to either one-half of the total amount of those purchases of stamps and meter register settings that were made during the preceding month or the total amount of those purchases of stamps and meter register settings that were made between the first day and the 15th day of the preceding month, whichever is greater. The second monthly remittance shall be made on or before the 25th day of the month for the remainder of those purchases of stamps and meter register settings that were made in the preceding month.

(3) If a distributor elects to make the payment required by subdivision (a) on a weekly basis, the distributor shall remit the payment on or before Wednesday following the week in which the stamps and meter register settings were approved and released. Every distributor electing to make payment on a weekly basis shall provide to the board and update, 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.

(c) Amounts owing for stamps and meter register settings purchased on the deferred-payment basis without a security pursuant to subdivision (d) of Section 30142 shall be due and payable on or before Wednesday following the week in which the stamps and meter register settings were purchased. Payment shall be made by a remittance payable to the board.

History.—Added by Stats. 1961, p. 2316, operative July 16, 1961. Stats. 1967, p. 2519, operative August 1, 1967, substituted "any calendar month, beginning with August, 1967," for "a monthly period beginning with the 16th day of a calendar month and ending with the 15th day of the following calendar month" and "20th day of the following" for "28th day of the latter" in the first sentence and added the last sentence. Stats. 1968, p. 1100, in effect November 13, 1968, substituted "25th" for "20th". Stats. 2003, Ch. 867 (AB 1666), in effect January 1, 2004, established the former sole paragraph as subdivision (a), deleted ", beginning with August, 1967," after "in any calendar month", substituted "on a monthly basis . . . meter register settings were purchased" for "on or before the 25th day of the following calendar month" after "shall be due and payable" in the first sentence, and deleted the last sentence "Amounts owing for purchases made from July 16, 1967, to and including July 31, 1967, shall be due and payable on or before August 31, 1967" of subdivision (a); and added subdivisions (b) and (c). Stats. 2006, Ch. 70 (AB 2001), in effect January 1, 2007, substituted "fifth" for "5th" after "or before the" in the second sentence of subdivision (b)(2); and deleted 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 for in subdivision (c), amounts" for "Amounts" before "owing for stamps", deleted "in any calendar month" after "deferred-payment basis", and substituted "based on the distributor's election to make the payment pursuant to subdivision (b)" for "on a monthly basis, in the manner elected pursuant to subdivision (b), during the month following the calendar month in which the stamps and meter register settings were purchased" after "due and payable", in the first sentence of subdivision (a); substituted a comma for "or" after "either a monthly", and added ", or a weekly" after "a twice-monthly", in the first sentence of the first paragraph, substituted "fifth" for "5th" after "or before the" in the second sentence of paragraph (2), and added paragraph (3) to subdivision (b); and 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".

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.

30168. Due date for credit purchases. [Repealed by Stats. 2006, Ch. 70 (AB 2001), in effect January 1, 2007.]

History.—Added by Stats. 2003, Ch. 867 (AB 1666), in effect January 1, 2004. Repealed by Stats. 2006, Ch. 70 (AB 2001), in effect January 1, 2007.

1Chapter 3.5 was added to Part 13 by Stats. 1961, p. 2315, operative July 16, 1961.