2005 California Revenue and Taxation Code Sections 6051-6055 Article 1. Imposition of Tax

6051.  For the privilege of selling tangible personal property at
retail a tax is hereby imposed upon all retailers at the rate of 21/2
percent of the gross receipts of any retailer from the sale of all
tangible personal property sold at retail in this state on or after
August 1, 1933, and to and including June 30, 1935, and at the rate
of 3 percent thereafter, and at the rate of 21/2 percent on and after
July 1, 1943, and to and including June 30, 1949, and at the rate of
3 percent on and after July 1, 1949, and to and including July 31,
1967, and at the rate of 4 percent on and after August 1, 1967, and
to and including June 30, 1972, and at the rate of 33/4 percent on
and after July 1, 1972, and to and including June 30, 1973, and at
the rate of 43/4 percent on and after July 1, 1973, and to and
including September 30, 1973, and at the rate of 33/4 percent on and
after October 1, 1973, and to and including March 31, 1974, and at
the rate of 43/4 percent thereafter.
6051.1.  (a) Notwithstanding Section 6051, for the privilege of
selling tangible personal property at retail a tax is hereby imposed
upon all retailers at the rate of 5 percent of the gross receipts of
any retailer from the sale of all tangible personal property sold at
retail in this state on and after the operative date of this
subdivision.
   (b) Subdivision (a) shall become operative on December 1, 1989,
and shall cease to be operative on January 1, 1991.
   (c) The rate prescribed by Section 6051 shall be applicable on and
after the first day following the date subdivision (a) ceases to be
operative pursuant to subdivision (b).
6051.2.  (a) In addition to the taxes imposed by Section 6051 and
any other provision of this part, for the privilege of selling
tangible personal property at retail, a tax is hereby imposed upon
all retailers at the rate of 1/2 percent of the gross receipts of any
retailer from the sale of all tangible personal property sold at
retail in this state on and after July 15, 1991.
   (b) All revenues received pursuant to this section shall be
deposited in the State Treasury to the credit of the Local Revenue
Fund, as established pursuant to Section 17600 of the Welfare and
Institutions Code.
   (c) This section shall cease to be operative on the first day of
the first month of the calendar quarter following notification to the
board by the Department of Finance of a final judicial determination
by the California Supreme Court or any California court of appeal
that the revenues collected pursuant to this section and Section
6201.2 that are deposited in the Local Revenue Fund are either of the
following:
   (1) "General Fund proceeds of taxes appropriated pursuant to
Article XIIIB of the California Constitution," as used in subdivision
(b) of Section 8 of Article XVI of the California Constitution.
   (2) "Allocated local proceeds of taxes," as used in subdivision
(b) of Section 8 of Article XVI of the California Constitution.
6051.3.  In addition to the taxes imposed by Sections 6051, 6051.2,
6051.5, and any other provision of this part, for the privilege of
selling tangible personal property at retail, a tax is hereby imposed
upon all retailers at the rate of 1/4 percent of the gross receipts
of any retailer from the sale of all tangible personal property sold
at retail in this state on and after July 15, 1991, and during any
period in which this section is operative pursuant to Section 6051.4.
6051.4.  (a) Section 6051.3 shall be operative with respect to the
sale of all tangible personal property sold at retail in this state
on or after July 15, 1991, but shall cease to be operative during any
period described in subdivision (c) or (d).
   (b) On or before November 1, 1993, and on or before every November
1 thereafter, the Director of Finance shall determine and certify to
the Governor, the Legislature, and the board both of the following:
   (1) Whether the amount in the Special Fund for Economic
Uncertainties, as established pursuant to Section 16418 of the
Government Code, as of June 30 of the prior fiscal year exceeded 4
percent of General Fund revenues for that prior fiscal year.
   (2) Whether the estimated amount in the Special Fund for Economic
Uncertainties as of June 30 of the current fiscal year (without
inclusion of any revenue derived pursuant to Section 6051.3 on and
after January 1 of the current fiscal year) exceeds 4 percent of
General Fund revenues for the current fiscal year.
   (c) Section 6051.3 shall cease to be operative on and after
January 1, 1994, if on or before November 1, 1993, the Director of
Finance certifies pursuant to subdivision (b) that both amounts
certified pursuant to paragraphs (1) and (2) of that subdivision
exceed 4 percent of General Fund revenues for the respective fiscal
year for which each amount is determined and certified.
   (d) Section 6051.3 shall cease to be operative on and after
January 1 following any November 1 in which Section 6051.3 is
operative and the Director of Finance certifies pursuant to
subdivision (b) that both amounts certified pursuant to paragraphs
(1) and (2) of that subdivision exceed 4 percent of General Fund
revenues for the respective fiscal year for which each amount is
determined and certified.
   (e) Section 6051.3 shall become operative on and after January 1
following any November 1 in which Section 6051.3 is inoperative and
the Director of Finance certifies pursuant to paragraph (2) of
subdivision (b) that the estimated amount does not exceed 4 percent
of the General Fund revenues as of June 30 of the current fiscal
year.
6051.45.  Notwithstanding 6051.4 or any other provision of law, the
state sales tax rate in Section 6051.3 shall not be operative in any
calendar year beginning on or after January 1, 2002, if the Director
of Finance determines both of the following:
   (a) The General Fund reserve is 3 percent of revenues excluding
the revenues derived from the 1/4 cent sales and use tax rate.
   (b) Actual General Fund revenues for the period May 1 through
September 30 equal or exceed the May Revision forecast, prior to the
November 1 determination.
   The Director of Finance shall make the determination on or before
November 1 of each year.
   The 1/4 cent reduction shall be operative for each calendar year
commencing on the next January 1 after the determination is made.
6051.5.  (a) In addition to the taxes imposed by Section 6051 and
any other provision of this part, for the privilege of selling
tangible personal property at retail a tax is hereby imposed upon all
retailers at the rate of one-quarter of 1 percent of the gross
receipts of any retailer from the sale of all tangible personal
property sold at retail in this state.
   (b) All revenues, net of refunds, received pursuant to this
section shall be deposited in the State Treasury to the credit of the
Fiscal Recovery Fund, as established pursuant to Section 99008 of
the Government Code.
   (c) Revenues received pursuant to this section accruing to the
Fiscal Recovery Fund shall not be considered to be "State General
Fund proceeds of taxes appropriated pursuant to Article XIIIB" within
the meaning of either Section 8 of Article XVI of the California
Constitution or Section 41202 of the Education Code.
   (d) This section shall become operative on July 1, 2004, and shall
cease to be operative on the first day of the first calendar quarter
commencing more than 90 days following a notification to the board
by the Director of Finance pursuant to subdivision (b) of Section
99006 of the Government Code.
6051.6.  There are exempted from the taxes imposed by Section 6051.5
the gross receipts derived from the sale of tangible personal
property, other than fuel or petroleum products, to operators of
aircraft to be used or consumed principally outside the county in
which the sale is made and directly and exclusively in the use of the
aircraft as common carriers of persons or property under the
authority of the laws of this state, the United States, or any
foreign government.
6055.  (a) A retailer is relieved from liability for sales tax that
became due and payable, insofar as the measure of the tax is
represented by accounts that have been found to be worthless and
charged off for income tax purposes by the retailer or, if the
retailer is not required to file income tax returns, charged off in
accordance with generally accepted accounting principles.  A retailer
that has previously paid the tax may, under rules and regulations
prescribed by the board, take as a deduction the amount found
worthless and charged off by the retailer.  If these accounts are
thereafter in whole or in part collected by the retailer, the amount
collected shall be included in the first return filed after the
collection and the tax shall be paid with the return.  For purposes
of this subdivision, the term "retailer" shall include any entity
affiliated with the retailer under Section 1504 of Title 26 of the
United States Code.
   (b) (1) In the case of accounts held by a lender, a retailer or
lender who makes a proper election under paragraph (4) shall be
entitled to a deduction or refund of the tax that the retailer has
previously reported and paid if all of the following conditions are
met:
   (A) No deduction was previously claimed or allowed on any portion
of the accounts.
   (B) The accounts have been found worthless and written off by the
lender in accordance with the requirements of subdivision (a).
   (C) The contract between the retailer and the lender contains an
irrevocable relinquishment of all rights to the account from the
retailer to the lender.
   (D) The retailer remitted the tax on or after January 1, 2000.
   (E) The party electing to claim the deduction or refund under
paragraph (4) files a claim in a manner prescribed by the board.
   (2) If the retailer or the lender thereafter collects in whole or
in part any accounts, one of the following shall apply:
   (A) If the retailer is entitled to the deduction or refund under
the election specified in paragraph (4), the retailer shall include
the amount collected in its first return filed after the collection
and pay tax on that amount with the return.
   (B) If the lender is entitled to the deduction or refund under the
election specified in paragraph (4), the lender shall pay the tax to
the board in accordance with Section 6451.
   (3) For purposes of this subdivision, the term "lender" means any
of the following:
   (A) Any person who holds a retail account which that person
purchased directly from a retailer who reported the tax.
   (B) Any person who holds a retail account pursuant to that person'
s contract directly with the retailer who reported the tax.
   (C) Any person who is either an affiliated entity, under Section
1504 of Title 26 of the United States Code, of a person described in
subparagraph (A) or (B), or an assignee of a person described in
subparagraph (A) or (B).
   (4) Prior to claiming any deduction or refund under this
subdivision, the retailer who reported the tax and the lender shall
file an election with the board, signed by both parties, designating
which party is entitled to claim the deduction or refund.  This
election may not be amended or revoked unless a new election, signed
by both parties, is filed with the board.