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s 1933. Photographers and Photostat Producers, Photo Finishers and X-Ray Laboratories.
s 1934. Printing and Related Industries.
s 1935. Signs, Show Cards, and Posters.
(Formerly Article 4)
s 1946. Repairers and Reconditioners in General.
s 1947. Bookbinders.
s 1948. Exchange of Vehicle Motors.
s 1949. Fur Repairers, Alterers and Remodelers.
s 1950. Repainting and Refinishing.
s 1951. Retreading and Recapping Tires.
s 1952. Rewinding Motors and Transformers.
s 1953. Shoe Repairmen.
s 1954. Tennis Racket Restringing and Repairing.
s 1955. Watch and Jewelry Repairmen.
(Formerly Article 5)
s 1966. Auctioneers.
s 1967. Automobile Dealers and Salesmen.
Note: Authority cited: Section 7051, Revenue and Taxation Code. Reference: Section 6015, Revenue and Taxation Code.
s 1968. Beer, Wine and Liquor Dealers.
s 1969. Brokers and Lienors.
s 1970. Charitable Organizations.
s 1971. Exchanges.
s 1972. Florists.
s 1973. Memorial Dealers.
s 1974. Mortgagees and Trustees.
s 1975. Vending Machine Operators.
(Formerly Article 6)
(Formerly Article 7)
s 2002. Food Products.
s 2003. Taxable Sales of Food Products.
(Formerly Article 8)
s 2014. Sales to the United States and Its Instrumentalities.
s 2015. Interstate and Foreign Commerce.
Note: Authority cited: Section 7051, Revenue and Taxation Code. Reference: Sections 6008, 6009.1, 6352, 6368.5 and 6385, Revenue and Taxation Code.
s 2016. Federal Areas.
s 2017. Federal Taxes.
(Formerly Article 9)
s 2028. Delivery Charges.
s 2029. Goods Damaged in Transit.
s 2030. Packers, Loaders, Shippers.
(Formerly Article 10)
s 2041. Credit Sales Generally.
s 2042. Lease Contracts.
s 2043. Oil Well Drilling Tools.
Note: Authority cited: Sections 6006, 6010, Revenue and Taxation Code.
(Formerly Article 11)
s 2054. Returned Merchandise.
s 2055. Merchandise Traded In.
s 2056. Defective Merchandise.
s 2057. Replacement Parts.
(Formerly Article 12)
s 2068. Resale Certificates.
s 2069. Demonstration and Display.
s 2070. Leases of Tangible Personal Property.
s 2071. "Tax-Paid Purchases Resold."
s 2072. Gifts and Premiums.
s 2073. Trading Stamps and Other Promotional Plans.
(Formerly Article 13)
s 2083. Engaged in Business.
Note: Authority cited: Section 6203, Revenue and Taxation Code.
s 2084. Collection of Tax by Retailers.
s 2085. Payment of Tax by Purchasers.
s 2086. Receipts for Tax Paid to Retailers.
s 2087. Information Returns.
1. Repealer of Article 34 filed-6-70; effective thirtieth day thereafter
(Register 70, No. 32). For history of former Article 34 Secs. 2098, 2099 and
2100 see Registers 69, Nos. 45 and 70, Nos. 5 and 24.
s 2101. Occasional Sales-Sale of a Business.
s 2101.5. Vehicles, Vessels, and Aircraft.
s 2102. Successor's Liability.
s 2103. Interest and Penalties.
(Formerly Article 15)
s 2202. Place of Sale for Purposes of Local Sales and Use Tax.
s 2203. Sales Tax and Use Tax-When Applicable-Collection of Use Tax by Retailers.
s 2204. Lease Contracts.
s 2205. Public Utilities, Common Carriers, and Waterborne Vessels.
s 2206. Construction Contractors.
s 2231. Oil Spill Prevention and Administrative Fee Return.
(a) This regulation applies to the fees imposed for the period September 24, 1990 through December 12, 1990.
(b) Marine Terminal Operator-For the privilege of operating a marine terminal, an oil spill prevention and administration fee is imposed under article 6, section 8670.40 of chapter 7.4 of division 1 of Title 2 of the Government Code upon every marine terminal operator at the rate of four cents ($0.04) per barrel of oil delivered through the operator's marine terminal.
(c) Pipeline Operator-For the privilege of operating a pipeline, an oil spill prevention and administration fee is imposed under article 6, section 8670.40 of chapter 7.4 of division 1 of Title 2 of the Government Code upon every operator of a pipeline at the rate of four cents ($0.04) per barrel of oil transported into the state by means of a pipeline operating across, under, or through marine waters of this state.
(d) Each marine terminal operator and operator of a pipeline shall file a return with the State Board of Equalization on or before February 25, 1991 showing the number of barrels of oil delivered through a marine terminal or transported into the state by means of a pipeline operating across, under, or through marine waters of this state during the period September 24, 1990 through December 12, 1990. The fee due shall be remitted with the return.
Note: Authority cited: Section 8670.40, Government Code. Reference: Sections 8670.3 and 8670.48, Government Code.
s 2232. Oil Spill Response Fee Return.
(a) This regulation applies to the fees imposed for the period September 24, 1990 through December 12, 1990.
(b) For the privilege of operating a marine terminal, an oil spill response fee is imposed under article 7, section 8670.48 of chapter 7.4 of division 1 of Title 2 of the Government Code upon every marine terminal operator at the rate of twenty five cents ($0.25) per barrel of petroleum products received at a marine terminal within the state by means of a vessel from a point of origin outside the state and of crude oil that is transported from within the state by means of vessel to a destination outside the state.
(c) For the privilege of operating a pipeline, an oil spill response fee is imposed under article 7, section 8670.48 of chapter 7.4 of division 1 of Title 2 of the Government Code upon every operator of a pipeline at the rate of twenty five cents ($0.25) per barrel of petroleum products transported into the state by means of a pipeline and of crude oil transported out of the state.
(d) For the privilege of operating a refinery, an oil spill response fee is imposed under article 7, section 8670.48 of chapter 7.4 of division 1 of Title 2 of the Government Code upon every operator of a refinery at the rate of twenty five cents ($0.25) per barrel of crude oil received at a refinery within the state.
(e) Each marine terminal operator and each operator of a pipeline shall file a return with the State Board of Equalization, on a form prescribed by the board, (Form ET-501-OR (12-90) California Oil Spill Response Fee Return), showing the number of barrels of petroleum products received at a marine terminal by means of a vessel from outside this state or transported into the state by means of a pipeline.
(f) Each operator of a refinery or pipeline and each marine terminal operator shall file a return with the State Board of Equalization, on a form prescribed by the board, (ET-501-OR (12-90) showing the number of barrels of crude oil received at a refinery within the state, transported out of state by means of a pipeline or transmitted from within the state by means of a vessel to a destination outside the state.
(g) The oil spill response fee returns (ET-501-OR (12-90) will be due on or before February 25, 1991 for the period September 24, 1990 through December 12, 1990. The fee due shall be remitted with the return.
Note: Authority cited: Section 8670.48, Government Code. Reference: Sections 8670.3 and 8670.48, Government Code.
s 2240. Petroleum Products.
(a) "Petroleum products" means a hydrocarbon product that is all of the following:
(1) a liquid at standard conditions of temperature and pressure (60 degrees Fahrenheit and 14.7 pounds per square inch absolute);
(2) the product of fractionation, distillation, or other refining or processing of crude oil; and
(3) that is used as, useable as, or may be refined as, a fuel or fuel blendstock.
(b) Petroleum products includes, but is not limited to, the following hydrocarbon products:
(1) alcohol fuels containing petroleum products,
(2) aviation fuel,
(3) benzene and benzene hydrocarbon liquids,
(4) bunker fuel,
(5) crude hydrocarbon feedstock (containing butyraldehydes and ethylpropyl acrolein),
(6) diesel fuel,
(7) gasoline and gasoline feedstocks,
(8) jet fuel,
(9) methyltertiarybutylether (MTBE) produced from crude oil feedstocks,
(10) naphtha,
(11) oil (including base oil, sump, oil sludge, oil refuse, and oil mixed with waste)
(12) toluene, and
(13) transmix.
(c) Petroleum products does not include:
(1) Any hydrocarbon product that is not a liquid at standard temperature and pressure (for example asphalt, coke, liquid petroleum gas, solid greases and wax),
(2) Ammonia, and
(3) MTBE and other substances that are produced from non-crude oil derived feedstocks. MTBE will be considered a petroleum product produced from crude oil derived feedstocks and therefore subject to the fee unless the manufacturer or other party who has held title or possession to the MTBE has provided acceptable documentation to the feepayer, which documentation the feepayer has made available for inspection to the board, which indicates that the source of the feedstocks used to produce the MTBE was non-crude oil derived feedstocks. Acceptable documentation includes, but is not limited to, certifications, written statements, invoices, product descriptions, or any other representation which shows that the composition of the feedstocks used in manufacturing was non-crude oil derived and which documentation was provided to any person prior to the delivery of the product at any marine or other terminal.
Note: Authority cited: Section 15606(a), Government Code; and Section 46601, Revenue and Taxation Code. Reference: Section 46021, Revenue and Taxation Code.
s 2241. Barrel of Crude Oil.
"Barrel of crude oil" means 42 United States gallons of crude oil in its unrefined or natural state, including condensate and natural gasoline, at standard conditions of temperature and pressure (60 degrees Fahrenheit and 14.7 pounds per square inch absolute), and excluding such sediment and water which are present in the crude oil as the result of the production process.
Note: Authority cited: Section 15606(a), Government Code; and Section 46601, Revenue and Taxation Code. References: Sections 46008 and 46010, Revenue and Taxation Code; and Sections 8670.40 and 8670.48, Government Code.
s 2242. Barrel of Petroleum Products.
"Barrel of petroleum products" means 42 United States gallons of petroleum product at standard conditions of temperature and pressure (60 degrees Fahrenheit and 14.7 pounds per square inch absolute) and excluding such sediment and water which are present in the petroleum products.
Note: Authority cited: Section 15606(a), Government Code; and Section 46601, Revenue and Taxation Code. References: Section 46008 Revenue and Taxation Code; and Section 8670.40 and 8670.48, Government Code.
s 2250. Relief of Liability.
A person may be relieved from the liability for the payment of the oil spill response fee and/or the oil spill prevention and administration fee including any penalties and interest added to those fees, when that liability resulted from the failure to make a timely return or a payment and such failure was found by the board to be due to reasonable reliance on written advice given by the board as described in California Code of Regulations, Title 18, Section 4902.
Note: Authority cited: Section 15606(a), Government Code; and Section 46601, Revenue and Taxation Code. Reference: Section 46158, Revenue and Taxation Code.
s 2255. Records.
(a) General. A feepayer shall maintain and make available for examination on request by the board or its authorized representatives, records in the manner set forth at California Code of Regulations, Title 18, Section 4901.
(b) Specific Applications. In addition to the record keeping requirements set forth in subdivision (a), feepayers shall comply with the following requirements.
In general, a person who is liable for payment of the oil spill response fee and/or the oil spill prevention and administration fee, would be expected to maintain some or all of the following records, as applicable:
(1) Books of account pertaining to crude oil ( including condensate and natural gasoline) and petroleum products received at a marine terminal (including third-party terminals) or transported by pipeline across, under or through the marine waters of this state.
(2) Shipping and discharge records.
(3) Records evidencing ownership at the landside flange of crude oil or petroleum products received at marine terminals.
(4) Records identifying all marine terminal/shipping dock locations owned or operated within the state.
(5) Records identifying third party locations where crude oil or petroleum products are received and documentation or certification that the third-party terminal operator remitted the fee on the crude oil and petroleum products where applicable.
(6) Third-party independent inspectors reports (e.g. Saybolt and Caleb Brett reports), where available, showing loading in the state of crude oil at marine terminals or discharge in the state of crude oil and other petroleum products at marine terminals/shipping docks.
(7) Refinery records showing the receipt of crude oil used for processing.
(8) Marine terminal records identifying the point of origin of crude oil and petroleum products received.
(9) Records from production platforms operated in this state accounting for all crude oil and any other product extracted on the platform and their distribution.
(10) Copies of all returns filed with the board and related schedules used to prepare the returns.
Note: Authority cited: Section 15606(a), Government Code; and Section 46601, Revenue and Taxation Code. References: Sections 46602 and 46603, Revenue and Taxation Code.
s 2257. Payment by Electronic Funds Transfer.
Payments by electronic funds transfer shall be made in accordance with California Code of Regulations, Title 18, Section 4905.
Note: Authority cited: Section 46160, Revenue and Taxation Code. Reference: Sections 46160 and 46162, Revenue and Taxation Code.
s 2300. Collection of Surcharge.
Every electric utility making sales of electrical energy to consumers in this state shall collect the surcharge from each consumer other than a consumer that is an electric utility or is exempt under Chapter 3, Part 19 of the Revenue and Taxation Code, at the time it collects its billing from the consumer for the electrical energy sold. A consumer is any person receiving electrical energy furnished by an electric utility and includes a person receiving electrical energy for redistribution for the use of his tenants.
An electric utility may collect the surcharge on sales of electrical energy to another electric utility if the purchasing utility certifies in writing to the selling utility that all purchased electrical energy will be consumed by it in such a manner as to be subject to the surcharge, that all self-generated electrical energy will be sold to other electrical utilities without collection of the surcharge, and that purchased electrical energy will not be pooled with self-generated electrical energy.
For the purpose of the proper administration of this part, it shall be presumed that electrical energy sold by an electric utility in this state to other than an electric utility is consumed by the purchaser in this state until the contrary is established.
Whenever the rate of the surcharge is increased or decreased, the duty to collect the surcharge from a consumer at such new rate shall commence with the first regular billing period applicable to that consumer which begins on or after the effective date of the change of rate.
The surcharge required to be collected by the electric utility from the consumer shall be added to the charges to the consumer for the electrical energy sold. The amount of the surcharge may be stated separately. If the electric utility does not separately state the amount of the surcharge, the electric utility shall print on the billing a notice to the effect that the charges include energy resources surcharge computed at (applicable rate) mill per kilowatt-hour.
Note: Authority cited: Section 40171, Revenue and Taxation Code. Reference: Sections 40001-40191, Revenue and Taxation Code.
s 2301. Due and Payable Dates.
The surcharges required to be collected by electric utilities are due quarterly on or before the last day of the month next succeeding each calendar quarter.
Amounts of surcharge due for which a billing for the electrical energy is issued by an electric utility to the consumer prior to the close of a calendar quarter are payable with the surcharge return for that quarter.
Any amounts of the surcharge required to be paid or collected that are not billed in the ordinary course of the billings by an electric utility may be determined by the Board against the utility or the consumer, or both.
s 2302. Surcharge Collections a Debt.
The surcharge required to be collected by the electric utility, and any amount unreturned to the consumer which is not a surcharge but was collected from the consumer as representing a surcharge, constitute debts owed by the electric utility to this state.
Any amounts collected by an electric utility from a consumer on account of the purchase of electrical energy the consumption of which is subject to the surcharge shall be applied proportionately between the liability of the consumer on account of the purchase of the electrical energy and the liability of the consumer for the surcharge. An electric utility may not apply partial payments by a consumer preferentially to the amount owing the utility for electrical energy, even though the partial payment is in an amount equal to the charge for such energy.
s 2303. Relief from Liability.
A person may be relieved from the liability for the payment of the energy resources surcharge, including any penalties and interest added to the surcharge, when that liability resulted from the failure to make a timely return or a payment and such failure was found by the board to be due to reasonable reliance on written advice given by the board as described in California Code of Regulations, Title 18, Section 4902.
Note: Authority cited: Section 40171, Revenue and Taxation Code. Reference: Section 40104, Revenue and Taxation Code.
s 2304. Worthless Accounts.
An electric utility is relieved from liability to collect the surcharge insofar as the base upon which the surcharge is imposed is represented by accounts which have been found to be worthless and charged off in accordance with generally accepted accounting principles. If the electric utility has previously paid the amount of the surcharge, it may take as a deduction on its return the amount found to be worthless and charged off. If such accounts are thereafter collected in whole or in part, the surcharge so collected shall be paid with the first return filed after such collection.
Electric utilities may charge off their worthless accounts on the basis of their experience ratio provided the write-off percentage includes an allowance for collection on worthless accounts made subsequent to the write-off.
s 2315. Exemptions and Exclusions.
The consumption of electrical energy which this state is prohibited from taxing under the Constitution of the United States or under the Constitution of this state is exempt from the surcharge. The surcharge does not apply to the consumption of electrical energy by foreign governments or by any state of the United States other than the State of California. The surcharge applies to the consumption of purchased electrical energy by the State of California, by any county, city and county, municipality, district, public agency, or subdivision of this state unless otherwise exempt. The surcharge applies to the consumption of purchased electrical energy by charitable, religious, scientific, or educational corporations, funds, or foundations, whether or not the organizations qualify for exemption from property tax or franchise tax.
s 2316. Specific Applications.
The surcharge does not apply to the consumption of electrical energy by the following persons:
(1) The United States, its unincorporated agencies and instrumentalities;
(2) Any incorporated agency or instrumentality of the United States wholly owned by either the United States, or by a corporation wholly owned by the United States;
(3) The American National Red Cross, its chapters and branches;
(4) Insurance companies, including title insurance companies, subject to taxation under California Constitution, Article XIII, Section 28;
(5) Banks, including national banking associations, located within the limits of this state. The exemption for state banks and national banking associations has been repealed beginning with the bank's income year for Bank and Corporation Tax purposes commencing on or after January 1, 1981. The surcharge shall be collected by the electric utility from each state bank and each national banking association beginning with the first regular billing period applicable to that bank which commences on or after the date the bank becomes subject to the surcharge.
(6) Enrolled Indians purchasing and consuming electrical energy on Indian reservations;
(7) Career consular officers and employees of certain foreign governments who are exempt from tax by treaties and other diplomatic agreements with the United States;
(8) Federal credit unions organized in accordance with the provisions of the Federal Credit Union Act.
Note: Authority cited: Section 40171, Revenue and Taxation Code. Reference: Sections 40001-40191, Revenue and Taxation Code.
s 2317. Consumption by Electric Utilities.
The consumption by an electric utility of self-generated electrical energy is not subject to the surcharge. The consumption by an electric utility of purchased electrical energy that is used directly, lost by dissipation, or unaccounted for in accordance with generally accepted accounting principles by the electric utility in the process of generation, transmission, and distribution of electrical energy is exempt from the surcharge. However, the surcharge applies to the consumption by electric utilities of purchased electrical energy for any other purpose. (The term "consumption" does not include the receiving of purchased electrical energy by an electric utility for resale.)
When an electric utility purchases electrical energy and pools in its system the energy with electrical energy generated by it, the consumption of electrical energy in this state from the pool by the utility during any quarter shall be deemed to be a consumption of energy generated by it to the extent that the kilowatt-hours of the electrical energy generated by it during the quarter exceed the kilowatt-hours consumed by the electric utility. When an electric utility consumes electrical energy purchased from another electric utility, which has not been pooled in its system with electrical energy generated by it, the surcharge will apply to the consumption of the purchased electrical energy, unless the consumption is otherwise exempt.
s 2318. Exemption Procedure.
s 2329. Registration.
Every electric utility selling electric energy for consumption in this state shall register with the Board upon a form prescribed by the Board and shall set forth the name under which the utility transacts or intends to transact business, the principal office address and the mailing address of the utility, and such other information as the Board may require.
s 2330. Electric Utility Returns.
Every electric utility shall file an electrical energy surcharge return on a form prescribed by the Board showing the number of kilowatt-hours of electrical energy generated, purchased, and used together with deductions claimed and the amount of surcharge due for the preceding quarterly period. The return shall be signed by a responsible officer or agent of the electric utility and shall be accompanied by a payment for the surcharge due.
The return and the payment shall be filed quarterly on or before the last day of the month next succeeding each calendar quarter. Amounts of surcharge due for which a billing for the electrical energy is issued by an electric utility to the consumer prior to the close of a calendar quarter are payable with the surcharge return for that quarter.
s 2331. Consumer Returns.
Every person purchasing electrical energy the consumption of which is subject to the surcharge and who has not paid the surcharge billed and required to be collected by an electric utility shall file a return with the Board on or before the last day of the month following each calendar quarter for the preceding quarterly period. The return shall be filed in such form as the Board may prescribe and shall be filed by the person required to file the return or by his duly authorized agent. The person required to file a return shall deliver the return together with a remittance of the amount of the surcharge payable to the office of the Board.
The Board may require the filing of returns by consumers in circumstances where it finds that consumers' liabilities are not being included in the return of an electric utility or it determines that consumer returns are necessary for the efficient administration of the electrical energy surcharge. The Board may require consumers' returns to cover periods other than calendar quarters.
s 2332. Reports.
Every electric utility registered with the Board shall annually file a report with the Board in such form as the Board may prescribe setting forth its estimate of the kilowatt-hours it will sell and use to which the surcharge will apply during the period September 1 through August 31 following the date of the estimate. The report shall be filed no later than June 30 of each year. In addition, every electric utility registered with the Board shall annually file a report with the Board in such form as the Board may prescribe setting forth its estimate of the kilowatt-hours it will sell and use to which the surcharge will apply during the period March 1 through the last day of February following the date of the estimate. This report shall be filed no later than December 31 of each year.
In addition to any other reports or returns required, the Board may require additional, supplemental, or other reports from electric utilities, consumers, and any other person generating,purchasing, transmitting, distributing, or consuming electrical energy, including verification of the information to be given on and the times for filing of such reports. The Board may require reports of estimates of future availability, generation, sales, and consumption of electrical energy from electric utilities and other persons as it may deem necessary.
Note: Authority cited: Section 40171, Revenue and Taxation Code. Reference: Sections 40001-40191, Revenue and Taxation Code.
s 2333. Payment by Electronic Funds Transfer.
Payments by electronic funds transfer shall be made in accordance with California Code of Regulations, Title 18, Section 4905.
Note: Authority cited: Section 40067, Revenue and Taxation Code. Reference: Sections 40067 and 40069, Revenue and Taxation Code.
s 2343. Records.
(a) General. A taxpayer shall maintain and make available for examination on request by the board or its authorized representatives, records in the manner set forth at California Code of Regulations, Title 18, Section 4901.
(b) Specific Applications. In addition to the record keeping requirements set forth in subdivision (a), a taxpayer shall comply with the following requirements.
Every electric utility engaged in generating, purchasing, transmitting, distributing, consuming, or selling electrical energy in this state shall keep and maintain adequate and complete records showing:
(1) The electrical energy generated, purchased, transmitted, distributed, consumed, and sold in this state.
(2) Meter readings and other records as may be necessary for the accurate determination of the kilowatt-hours of electrical energy generated, purchased, consumed, or sold in this state. For sales or use measured by a basis other than metering, the records shall show the other measurement and the method of computing the kilowatt-hours of electrical energy so sold or used.
(3) All deductions allowed by law and claimed in filing returns, except for the electrical energy used or lost in generation, transmission, and/or distribution.
(4) The methods and amounts used in computing its reports of estimates of future availability, generation, sales, and consumption of electrical energy.
Note: Authority cited: Section 40171, Revenue and Taxation Code. Reference: Sections 40172, 40173, 40174 and 40175, Revenue and Taxation Code.
s 2344. Microfilm Records.
s 2345. Records Prepared by Automated Data Processing Systems.
s 2346. Records Retention.
s 2400. Foreword.
Note: Authority cited for Chapter 5.5 (Sections 2400-2431, not consecutive): Section 41128, Revenue and Taxation Code. Reference: Sections 41003-41019, 41020-41049, 41052-41053, 41073-41095 and 41129, Revenue and Taxation Code.
s 2401. Definitions.
(a) Service Supplier. "Service Supplier" means any person supplying intrastate telephone communication services to any service user in this state, provided however:
(1) Where intrastate telephone communication services are supplied through a prepaid telephone calling card, the "service supplier" means the person that provides access to its lines and switches for telephone services and is responsible for deducting the amounts charged for telephone services used from amounts of service available on the prepaid telephone calling card.
(2) A wholesaler or retailer of prepaid telephone calling cards is not a service supplier unless it provides access to its lines and switches for telephone services and is responsible for deducting the amounts charged for telephone services used from amounts of service available on the prepaid telephone calling card.
(b) Intrastate Telephone Communication Services. "Intrastate telephone communication services" means all local or toll telephone services where the point or points of origin and the point or points of destination of the services are all located in this state. It includes the access to a local telephone system, and the privilege of telephonic quality communication with substantially all persons having telephone or radiotelephone stations constituting a part of a local telephone system and any facility or service provided in connection with local telephone service. It also includes telephonic quality communication for which there is a toll charge which varies in amount with the distance and elapsed transmission time of each individual communication as well as a service which entitles the subscriber, upon payment of a periodic charge (whether a flat charge or a charge based upon total elapsed transmission time),to the privilege of an unlimited number of telephonic communications to or from all or a substantial portion of the persons having telephone or radiotelephone stations in a specified area which is outside the local telephone system area in which the station provided with the service is located.
(c) Billing Agent. "Billing Agent" shall mean any person that submits a bill to a service user on behalf of another person who is a service supplier, reseller or billing aggregator. A billing agent is not considered to be a service supplier for intrastate telephone communication services provided by or billed on behalf of that person.
(d) Billing Aggregator. "Billing Aggregator" shall mean any person engaged in the business of facilitating the billing and collection of charges for intrastate telephone communication services by aggregating the information about telephone communication services provided by one or more service suppliers and submitting the combined information to one or more local exchange carriers for billing and collection. The billing aggregator may contract with service suppliers to:
(1) receive call information detail from one or more service suppliers and submit that call information detail to one or more local exchange carriers acting as billing agents;
(2) receive payments from local exchange carriers acting as billing agents for disbursement as directed by service suppliers; and
(3) prepare and file returns and remit the surcharge to the Board in the manner provided in the applicable contract.
A billing aggregator shall identify all service suppliers on whose behalf it will prepare and file returns at such time and in such form as the Board requests.
(e) Prepaid Telephone Calling Card. "Prepaid telephone calling card" means any card, or other identifier such as an authorization number or access code, which is purchased in advance of use of telephone services, and entitles the holder of the card or user of the authorization number or access code to a specified dollar amount or number of minutes of telephone service, where dollar amounts or minutes for telephone services used are deducted from the amount of prepaid service available on the prepaid telephone calling card as local and long distance telephone services are provided to the user of the prepaid telephone calling card.
Note: Authority cited: Section 41128, Revenue and Taxation Code. Reference: Sections 41007, 41011 and 41021, Revenue and Taxation Code.
s 2402. Imposition of the Surcharge.
s 2403. Prepaid Telephone Calling Cards.
(a) The surcharge applies to the dollar amounts deducted or the value of the minutes deducted from the prepaid telephone calling card by the providing service supplier to the extent that those dollar amounts or minutes were deducted to pay for intrastate telephone communication services provided to the user of the prepaid telephone calling card. Dollar amounts or minutes deducted for interstate telephone communication services are exempt from the surcharge. Dollar amounts or minutes of telephone service which are forfeited because they have not been used prior to the expiration of the prepaid telephone calling card are not subject to the surcharge.
(b) Where intrastate telephone communication services are supplied through a prepaid telephone calling card, the providing service supplier may apply the surcharge to an estimate of the charges for intrastate services subject to the surcharge. The estimate of charges may be based on such call information as the providing service supplier reasonably believes demonstrates the approximate amount of intrastate telephone communication service charges subject to the surcharge.
(c) If a prepaid telephone calling card contains a statement that the price of the card includes applicable taxes and fees, the service supplier responsible for collecting and paying the surcharge on intrastate telephone communications services provided pursuant to the card may reduce the taxable measure of such services by taxes and fees which are not subject to the 911 surcharge. Taxes and fees which are not subject to the 911 surcharge include the federal excise tax and the 911 surcharge. Taxes and fees imposed on the service supplier by statute, such as those imposed by the California Public Utilities Commission, may not be deducted from the taxable measure.
Note: Authority cited: Section 41128, Revenue and Taxation Code. Reference: Sections 41011 and 41021, Revenue and Taxation Code.
s 2404. Billing Presumed to Be Correct.
s 2405. Partial Payments.
Partial payments by a service user to a service supplier for intrastate charges for service shall be applied proportionately to the charges for service and to surcharge, unless the service user specifically directs otherwise in writing.
s 2406. Liability for Surcharge Remitted by Billing Aggregator or Billed Through Billing Agents.
(a) The surcharge is required to be remitted by the service supplier which provided the intrastate telephone communication services.
(b) Where a return is filed and surcharge remitted by a billing aggregator on behalf of one or more service suppliers, the service supplier will be deemed to have remitted the surcharge if all of the following conditions have been met:
(1) The service supplier has registered with the Board in accordance with Regulation 2421.
(2) The service supplier has notified the Board in writing that the billing aggregator is authorized to act on its behalf to prepare and file returns and remit the surcharge to the Board, and such authorization is still in effect. Where the service supplier authorizes the billing aggregator to act on its behalf concerning only a portion of the telephone communication services it provides, the service supplier shall so notify the Board and must report and remit directly to the Board the surcharge due on the remainder of the telephone communication services it provides.
(3) The service supplier has provided to the Board and to the billing aggregator its written consent for the billing aggregator to disclose to the Board any and all records concerning the activities conducted on behalf of the service supplier related to the surcharge.
(4) The billing aggregator does either (A) or (B).
(A) files a separate return for each service supplier on whose behalf the return is filed which includes the name, address, account number and amount of surcharge remitted; or
(B) files a single return for more than one service supplier; provided that the billing aggregator, at such time and in such form as the board requests, shall identify the service suppliers on whose behalf it filed the return and provide documentation supporting the return.
(c) A service supplier acting as a billing agent for another service supplier, reseller or billing aggregator is not liable for remitting the surcharge on services provided by or billed on behalf of the other service supplier, reseller or billing aggregator even though those charges may be included, as a separate part of a billing, with charges for services it did provide to the service user. A billing agent providing only billing services is not a service supplier and is not required to remit the surcharge collected on behalf of a service supplier that provided the service.
Note: Authority cited: Section 41128, Revenue and Taxation Code. Reference: Sections 41021 and 41023, Revenue and Taxation Code.
s 2411. Exclusion from the Term "Person."
s 2412. Exclusions from the Term "Charges for Service."
s 2413. Exemptions from Surcharge.
The surcharge does not apply to:
(a) Charges for service or equipment furnished by a service supplier subject to public utilities regulation during any period when the same or similar service or equipment is also available for sale or lease from other than a service supplier subject to public utility regulation.
(b) Charges for service when imposition of such surcharge would be in violation of the Constitution of the United States, the United States Code, or the laws of the State of California. These include charges for service to:
(1) The United States, its unincorporated agencies and instrumentalities, or any state of the United States.
(2) Any incorporated agency or instrumentality of the United States wholly owned by either the United States, or by a corporation wholly owned by the United States.
(3) The American National Red Cross, its chapters and branches.
(4) Insurance companies, including title insurance companies, subject to taxation under California Constitution, Article XIII, Section 28.
(5) Banks, including national banking associations, located within the limits of this state. The exemption for state banks and national banking associations has been repealed beginning with the bank's income year for Bank and Corporation Tax purposes commencing on or after January 1, 1981. The service supplier shall collect the surcharge from each state bank and each national banking association beginning with the first regular billing period applicable to that bank which commences on or after the date the bank becomes subject to the surcharge.
(6) Enrolled Indians who are service users subscribing for service from within the limits of an Indian reservation.
(7) Foreign governments and career consular officers and employees of certain foreign governments who are exempt from tax by treaties and other diplomatic agreements with the United States.
(8) Federal credit unions organized in accordance with the provisions of the Federal Credit Union Act.
(c) Toll charges used in the collection and dissemination of news for public press.
(d) Charges for wide-area telephone service used by common carriers in the conduct of their business.
(e) Charges for intrastate telephone communication services which are exempt from the federal communication services tax pursuant to Section 4253 of the Internal Revenue Code of 1954.
Note: Authority cited: Section 41128, Revenue and Taxation Code. Reference: Sections 41003-41019, 41020-41049, 41052-41053, 41073-41095, and 41129, Revenue and Taxation Code.
s 2414. Exemption Procedure.
s 2421. Registration.
Every service supplier supplying intrastate telephone communication service to any service user in this state shall register with the board upon a form prescribed by the board and shall set forth the name under which it transacts or intends to transact business, the principal office address and the mailing address of the service supplier, and such other information as the board may require. The registration form shall be signed by the owner, a general partner, or a responsible officer of the corporation, as the case may be.
s 2422. Returns and Payment.
On or before the last day of the second month of each calendar quarter every service supplier shall file an emergency telephone users surcharge return on a form prescribed by the board for the preceding calendar quarter. The return shall be signed by a responsible officer or agent of the service supplier and shall be accompanied by a payment for the surcharge due. All remittances shall be payable to the State Board of Equalization.
At the time of filing each surcharge return the service supplier shall provide the board with a list containing the names and addresses of any service users who have refused to pay the surcharge, the date the surcharge was billed to each customer, the amount of each unpaid surcharge, and the reasons, if any, given by the users for refusing to make such payment. On and after January 1, 1982, such information shall be provided for a service user only if the cumulative uncollected amount for that user totals $3.00 or more.
Note: Authority cited: Section 41128, Revenue and Taxation Code. Reference: Sections 41024, 41051 and 41052, Revenue and Taxation Code.
s 2423. Refunds to Service User by Service Supplier.
s 2424. Service User Is Liable.
s 2425. Payment by Electronic Funds Transfer.
Payments by electronic funds transfer shall be made in accordance with California Code of Regulations, Title 18, Section 4905.
Note: Authority cited: Section 41060, Revenue and Taxation Code. Reference: Sections 41060 and 41062, Revenue and Taxation Code.
s 2431. Records.
(a) General. A service supplier shall maintain and make available for examination on request by the board or its authorized representatives, records in the manner set forth at California Code of Regulations, Title 18, Section 4901.
(b) Specific Applications. In addition to the record keeping requirements set forth in subdivision (a), service suppliers shall comply with the following requirements.
Every service supplier liable for payment of the emergency telephone users surcharge which it collects from service users shall keep complete and accurate records showing:
(1) Totals for intrastate telephone communication in this state billed to service users.
(2) All exemptions allowed by law.
(3) Amounts of Emergency Telephone Users Surcharge collected.
Note: Authority cited: Section 41128, Revenue and Taxation Code. Reference: Section 41056, Revenue and Taxation Code.
s 2432. Relief from Liability.
A person may be relieved from the liability for the payment of the Emergency Telephone Users Surcharge, including any penalties and interest added to the surcharge, when that liability resulted from the failure to make a timely return or a payment and such failure was found by the board to be due to reasonable reliance on written advice given by the board as described in California Code of Regulations, Title 18, Section 4902.
Note: Authority cited: Section 41128, Revenue and Taxation Code. Reference: Section 41098, Revenue and Taxation Code.
Note: Authority cited: Section 42600, Revenue and Taxation Code. Reference: Sections 42101-42103, 42103.5, 42104-42106 and 42108, Revenue and Taxation Code.
s 2500. Records.
A taxpayer shall maintain and make available for examination on request by the board or its authorized representatives, records in the manner set forth at California Code of Regulations, Title 18, Section 4901.
Note: Authority cited: Section 32451, Revenue and Taxation Code. Reference: Sections 32452 and 32453, Revenue and Taxation Code.
s 2504. Distilled Spirits Produced, Packaged, or Bottled.
Every distilled spirits manufacturer, manufacturer's agent, brandy manufacturer, and rectifier shall keep and preserve a record of all distilled spirits produced, manufactured, cut, blended, rectified, bottled, packaged, or otherwise acquired in this State. A daily record of such acquisitions shall be made in book forms prescribed by the board. All distilled spirits received from licensee's own bottling or packaging department shall be recorded in SBE Form 240A. Receipts from the bottling or packaging department shall include all distilled spirits bottled or packaged, whether or not the distilled spirits are owned by the licensee.
Note: Authority cited: Section 32451, Revenue and Taxation Code. Reference: Sections 32001-32556, Revenue and Taxation Code.
s 2505. Bottled or Packaged Distilled Spirits Acquired in California.
Every distilled spirits taxpayer shall keep a record in SBE Form 241A of all bottled or packaged distilled spirits acquired from other distilled spirits taxpayers in California and of all distilled spirits received from licensee's own branches in California.
Note: Authority cited: Section 32451, Revenue and Taxation Code. Reference: Sections 32001-32556, Revenue and Taxation Code.
s 2506. Bottled or Packaged Distilled Spirits Imported.
Every distilled spirits or brandy importer shall keep a record in SBE Form 242A of all bottled or packaged distilled spirits acquired by direct importation from without the State.
Note: Authority cited: Section 32451, Revenue and Taxation Code. Reference: Sections 32001-32556, Revenue and Taxation Code.
s 2507. Distilled Spirits Sold or Exported.
Every distilled spirits taxpayer shall keep a record of all distilled spirits sold, and in addition thereto, shall make a daily record in book forms prescribed by the board covering all distilled spirits sold or delivered to other taxpayers in California and all distilled spirits exported or sold for export from California, as follows:
(a) All sales or deliveries of distilled spirits to other California distilled spirits taxpayers, all transfers of distilled spirits to licensee's own branches in California, and all returns of distilled spirits to original vendors in California, shall be recorded in SBE Form 243B.
(b) All sales of distilled spirits exported or sold for export from California and actually exported and all sales of distilled spirits to common carriers engaged in interstate or foreign passenger service, shall be recorded in SBE Form 244B.
s 2508. Distilled Spirits Invoices and Bottling or Packaging Records.
All purchase invoices and bottling or packaging records covering distilled spirits acquisitions and all sales invoices, credit memoranda, or other data supporting such sales or deliveries, must be retained by the licensee and filed in such manner as to be readily available for verification by employees of the board.
Note: Authority cited: Section 32451, Revenue and Taxation Code. Reference: Sections 32001-32556, Revenue and Taxation Code.
s 2509. Prepayment of Distilled Spirits Tax; Consolidated Returns.
Any distilled spirits wholesaler may make an application to the board for permission to prepay the distilled spirits excise tax on his inventory of distilled spirits on hand as of the first day of any calendar month, and for permission thereafter to pay the excise tax levied on sales of distilled spirits on the basis of subsequent purchases and acquisitions of distilled spirits by him. Any wholesaler who has been granted such permission and who operates more than one location for which distilled spirits wholesalers' licenses are issued and who elects to file a consolidated tax return covering distilled spirits transactions for all of his branch premises, need not include in his SBE Forms 241A and 243B transfers of distilled spirits between his own premises as otherwise provided in this article.
s 2512. Beer and Wine Production; Beer Bottling; Wholesalers' Beer and Wine Purchases.
Every beer manufacturer or wine grower shall keep and preserve a record of all beer or wine manufactured or produced in this State. Such record must show the quantity produced and the disposition thereof. Duplicates of federal production and bottling records, if available to employees of the board, shall suffice to comply with this regulation. (continued)