(a)
General. A vendor who wishes to conduct business separately at different
locations will be issued a permit for each place of business upon the filing of
an application for a permit for each location. The permit shall be
conspicuously displayed at the place of business of the vendor where fuel is
sold and delivered to users. If a vendor is the holder of a single permit and
has more than one such place of business but does not wish to conduct business
separately at each location, duplicate copies of the permit will be supplied by
the board so that the vendor may display the permit as required.
(b) Inactive Permits. Any person operating as
a vendor of fuel in this State under the Use Fuel Tax Law must hold a valid
vendor use fuel tax permit. Any person who is not operating as a vendor of fuel
but who is holding a vendor use fuel tax permit must surrender the permit to
the board for cancellation. The board may revoke the permit of any person found
not to be operating as a vendor of fuel.
Upon either the discontinuance of operations as a vendor or
the sale of the business, a permit holder shall notify the board of such
discontinuance or sale and physically deliver the permit to the board for
cancellation. To be acceptable, the notice of the discontinuance or sale of the
business must be received by the board in one of the following ways:
(1) Either an oral or a written statement
given to a board representative accompanied by delivery of the permit. If the
permit is lost, destroyed, or otherwise unavailable for delivery to the board,
the notice of discontinuance or sale must be in writing.
(2) Receipt by the board of the application
for a vendor's permit from the successor of the business. Such application will
serve to put the board on notice of the discontinuance of operations as a
vendor by the predecessor.
Notice to another state agency of the discontinuance of
operations or the sale of a business does not constitute notice to the
board.
(c)
Predecessor Liability. Unless the permit holder who sells, donates, trades or
otherwise transfers a business notifies the board of such transfer and delivers
the permit to the board for cancellation as provided in paragraph (b) above, he
or she will be liable for taxes, interest, and penalties (excluding penalties
for fraud or intent to evade the tax) incurred by the successor who, with the
transferor's actual or constructive knowledge, uses the permit in any way,
e.g., displays the permit in the successor's place of business or files returns
with the board in the name of the predecessor. The amount of the liability of
the predecessor shall include all taxes, interest, and penalties incurred by
the successor up to the time the board receives notice of the sale as provided
herein. However, at its discretion, the board may relieve the predecessor from
liability for penalties incurred by the successor.
A successor may, under certain conditions, be liable for tax,
interest, and penalties incurred by a predecessor as explained in Regulation
1334, Successor's Liability (18 CCR
1334).
Notes
Cal. Code Regs.
Tit. 18, §
1307
1. Amendment
of section and new subsections (b) and (c) filed 9-19-91; operative 10-21-91
(Register 91, No. 52).
Note: Authority cited: Section
9251,
Revenue and Taxation Code. Reference: Sections
8711,
8712,
8713,
and
8716,
Revenue and Taxation Code.
1. Amendment of section
and new subsections (b) and (c) filed 9-19-91; operative 10-21-91 (Register 91,
No. 52).t
