The bill requires the executive director of the department of revenue (executive director) to issue a voucher to the controller in favor of a purchaser who makes a valid and complete claim for a sales and use tax overpayment refund on or after July 1, 2022. The voucher must be for the amount of the refund of the sales or use tax overpayment without interest.
If a purchaser makes a frivolous claim for a sales and use tax refund, the bill requires the executive director to assess and collect, in addition to other penalties provided by law, a civil penalty equal to 10% of the total refund claimed. If the frivolous claim is prepared, in whole or in part, by a person other than the purchaser, the executive director can impose the penalty on that other person. In certain cases, the executive director may waive this penalty.
