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Business Taxes Law Guide—Revision 2024

Sales And Use Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 2. The Sales Tax

Article 2. Permits

Section 6072


6072. Inactive permit. A permit shall be held only by persons actively engaging in or conducting a business as a seller of tangible personal property. Any person not so engaged shall forthwith 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.

Any person who knowingly issues a resale certificate while the person is not actively engaged in business as a seller, for personal gain or to evade the payment of taxes, shall be liable for the taxes that would otherwise have been due on the transaction, plus a penalty of 10 percent or five hundred dollars ($500), whichever is greater, in addition to all other penalties imposed by this part, and interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the last day of the month following the quarterly period for which the amount or any portion thereof should have been returned until the date of payment.

History—Added by Stats. 1965, p. 1475, in effect September 17, 1965. Stats. 1980, Ch. 91, operative January 1, 1981, added second paragraph. Stats. 1982, Ch. 1589, in effect January 1, 1983, substituted "the person" for "he" after "while," added "which is in … this part" after "percent," and substituted "adjusted annual … until" for "rate of … transaction to" in the second paragraph. Stats. 1984, Ch. 1020, effective January 1, 1985, operative July 1, 1985, in second paragraph substituted "in … greater" for "which is" after "10 percent," substituted "modified adjusted … thereof" for "adjusted annual rate" before "established," substituted "Section 6591.5" for "Section 19269." Stats. 1984, Ch. 512, effective July 17, 1984, deleted "which is" after "10 percent" in second paragraph, added "or … greater" after "10 percent." Stats. 1984, Ch. 930, effective January 1, 1985, added "compounded daily", after "Section 19269."