California Revenue and Taxation Code

§ 6597

RTC § 6597 Effective Jan 1, 2025Div. 2 · Part 1 · Ch. 5 · Art. 6

Statute text

(a)(1) Any person who knowingly collects sales tax reimbursement, as defined in Section 1656.1 of the Civil Code, or who knowingly collects use tax pursuant to Chapter 3 (commencing with Section 6201), and who fails to timely remit that sales tax reimbursement or use tax to the California Department of Tax and Fee Administration, shall be liable for a penalty of 40 percent of the amount not timely remitted.

(2)(A) This subdivision shall not apply to any person whose liability for the unremitted sales tax reimbursement or use tax described in paragraph (1) averages one thousand five hundred dollars ($1,500) or less per month or does not exceed 25 percent of the total amount of tax liability for which the sales tax reimbursement or use tax was collected for the period in which tax was due, whichever is greater.

(B)If a person’s failure to make a timely remittance of sales tax reimbursement or use tax is due to a reasonable cause or circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person shall be relieved of the penalty imposed by this subdivision.

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Legislative history

Amended by Stats. 2024, Ch. 499, Sec. 13. (SB 1528) Effective January 1, 2025.