1. (a) Excess Charges Collected. Except as otherwise provided in subdivision (c), when an amount represented by a seller to a prepaid consumer as constituting local charges is in excess of the amount of local charges imposed and actually due from the prepaid consumer and is actually paid by the consumer to the seller, the amount so paid constitutes excess charges collected. The seller may refund the excess charges collected to the prepaid consumer who paid the amount to the seller even if the seller has paid the excess charges to the Department and not yet secured a credit or refund. Any excess charges collected and not refunded to the customer constitute a debt owed jointly to the local jurisdiction or local agency imposing the local charges and to the State, for purposes of collection on behalf of, and payment to, the local jurisdiction or local agency.
2. (b) Claim for Refund. Except as otherwise provided in subdivision (c), every person required to pay local charges, including the seller, may file a claim for refund with the Department for any amount that has been erroneously or illegally collected or computed and paid to the Department. In order to be timely, the claim for refund must be filed with the Department within the limitation periods specified in sections 55222, 55222.1, and 55222.2 of the Revenue and Taxation Code.

3. (c) Filing a Claim for Refund with the Local Jurisdiction or Local Agency. A prepaid consumer must file a claim for refund for local charges with the local jurisdiction or local agency imposing the local charges, and not the Department, in the following circumstances:

   1. (1) When the prepaid consumer chooses to rebut the presumed location of a retail transaction, as provided in subdivision (b) of section 42105 of the Revenue and Taxation Code, the prepaid consumer shall file a claim and declaration under penalty of perjury on a form established by the city or county clerk of the local jurisdiction or local agency indicating the actual location of the retail sale. The claim shall be processed in accordance with the provisions of the local enactment that allows the claim to be filed.
   2. (2) When the prepaid consumer is exempt from the local charges under the local enactment, the prepaid consumer may file a claim for a refund with the local jurisdiction or local agency in accordance with the refund provisions of the local enactment that allows the claim to be filed.
   3. (3) When the prepaid consumer's actions or claims relate to or arise from the invalidity of a local tax ordinance, in whole or in part.
4. (d) Relief from Liability. A seller is not liable for any additional local charges and is not required to refund any amounts collected from the prepaid consumer under the conditions set forth in subdivision (g)(1) or (2) of Regulation 2460.

Note: Authority cited: Section 42103, Revenue and Taxation Code. Reference: Sections 42101.6, 42101.8, 42103 and 42105, Revenue and Taxation Code.

History

1. New section filed 1-11-2017; operative 1-11-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 2).

2. Change without regulatory effect amending subsections (a), (b) and (c) filed 8-28-2018 pursuant to section 100, title 1, California Code of Regulations (Register 2018, No. 35).

3. Amendment of section and Note filed 7-16-2025; operative 10-1-2025 (Register 2025, No. 29).