Sales Tax Permits

Division 2, Part 1, Chapter 2, Article 2 deals with permits for the sales tax under the Revenue and Taxation Code.

Section 6066 provides that every person desiring to engage in or conduct business as a seller within this state is required to file with the board an application for a permit for each place of business. Every application for a permit is to be made upon a form prescribed by the board and must set forth the name under which the applicant transacts or intends to transact business, the location of his place or places of business, and other information as the board may require.

Section 6066.3 states that a city, county, or city and county may collect information from persons desiring to engage in business in that jurisdiction for the purposes of selling tangible personal property under this part and transmit that information to the board. The information is to be provided to the board in a format to be determined by the board after consulting with the League of California Cities and the California State Association of Counties.

Section 6066.4 allows a city, county, or city and county to require each person desiring to engage in business in that jurisdiction for the purposes of selling tangible personal property to provide his or her seller’s permit account number, if any.

Section 6066.5 requires the applicant to be provided with a written notice in a form prescribed by the board outlining the provisions of law and the penalties that will accrue to the applicant should the permit be used in a manner which is prohibited by those sections.

Section 6067 requires the board to grant and issue to each applicant a separate permit for each place of business within the state. A permit is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated therein.

Section 6068 states that, upon the notification of a change of address as may be required by the board, a permit may be reissued for the new address of a business place of a permitholder without the filing of a new application.

Section 6069 provides that a seller whose permit has been previously suspended or revoked is required to pay the board a fee of $100 for the renewal or issuance of a permit.

Section 6070 says that, whenever any person fails to comply with any provision of this part relating to the sales tax or any rule or regulation of the board relating to the sales tax prescribed and adopted under this part, the board upon hearing, after giving the person 10 days’ notice in writing specifying the time and place of hearing and requiring him to show cause why his permit or permits should not be revoked, may revoke or suspend any one or more of the permits held by the person. The board must give to the person written notice of the suspension or revocation of any of his permits.

Section 6070.5 allows the board to refuse to issue a permit to any person submitting an application for a permit if the person desiring to engage in or conduct business as a seller within this state has an outstanding final liability with the board for any amount due under this part. In addition, the board may refuse to issue a permit if the person desiring to engage in or conduct business as a seller within this state is not a natural person or individual and any person controlling the person desiring to engage in or conduct business as a seller within this state has an outstanding final liability with the board. The term “controlling” is defined.

Section 6071 provides that a person who engages in business as a seller in this state without a permit or permits or after a permit has been suspended or revoked, and each officer of any corporation which so engages in business, is guilty of a misdemeanor.

Section 6071.1 explains that a permitholder who fails to surrender a seller’s permit upon transfer of a business is liable for any tax, interest, and penalty incurred by the transferee if the permitholder has actual or constructive knowledge that the transferee is using the permit in any manner. The predecessor’s liability is limited to the quarter in which the business is transferred, and the three subsequent quarters. The limitation on liability does not apply in cases where, after the transfer, 80% or more of the ownership of the business transferred is held by the predecessor.

Section 6072 requires a permit to be held only by persons actively engaging in or conducting a business as a seller of tangible personal property. Any person not so engaged must immediately surrender his or her permit to the board for cancellation. The board may revoke the permit of a person found to be not actively engaged in or conducting a business as a seller of tangible personal property.

Section 6073 provides that, when the board determines it is necessary for the efficient administration of this part, the board may require the operator of a swap meet, flea market, or special event as a prerequisite to renting or leasing space on the premises owned or controlled by that operator to a person desiring to engage in or conduct business as a seller, to obtain written evidence that the seller is the holder of a valid seller’s permit.

Section 6073.1 explains that an operator of a swap meet or flea market, or special event, who verifies that a seller has a valid seller’s permit, or who obtains from the seller a certificate that the seller is not offering for sale any item that is taxable under this part and who completes the form requirements, is deemed to have complied with the requirements of Section 6073. No additional forms will be required by the State Board of Equalization.

Section 6073.2 provides that Section 6073 does not apply to any of the specified activities. The term “trade show” is defined.

Section 6074 states that, when the board determines it is necessary for the efficient administration of this part, the board may, by written notice, require any person making sales to operators of catering trucks, operated out of that person’s facility, who resell the property in the regular course of his or her business, to obtain evidence that the operator is the holder of a valid seller’s permit,

At any time as the board may specify in a written notice, but in no case more than three times in a calendar year, the board may require a person making sales to operators of catering trucks to submit to the board a listing of operators of catering trucks who purchase goods from that person. Each listing is to be provided to the board within 30 days after the date of the board’s notice, and must include specified information.

Section 6075 prohibits a permit from being required of any person who engages in business in this state as a seller of feed, for any form of animal life, that is exempt from taxation and who engages in no other taxable sales of tangible personal property at retail. In the case of any seller of hay who is also a grower of hay, the exemption only applies to growers who are either of the specified types of growers.

Section 6077 states that any retail florist who fails to obtain a permit before engaging in or conducting business as a seller is required, in addition to any other applicable penalty, pay a penalty of $500. Every mobile retail florist must have a copy of the permit at each sales location which is in the possession of a person operating at that location. The terms “retail florist” and “mobile retail florist” are defined.