CA SB1357

Permits qualified persons to claim refunds of sales and use taxes paid instead of claiming research and development income tax credits or California Competes Tax Credits under personal income or corporation tax law, effective January 1, 2021.

Defines qualified sales tax reimbursement and qualified use tax to include state and local sales and use taxes imposed under the Bradley-Burns Uniform Local Sales and Use Tax Law and the Transactions and Use Tax Law.

Requires refund claims to be accompanied by proof of tax payment, a copy of the relevant tax return, and an irrevocable waiver of the equivalent income tax credit amount.

Mandates the California Department of Tax and Fee Administration to provide annual reports to the Franchise Tax Board listing qualified persons who claimed refunds and the refund amounts issued.

Authorizes refunds from the General Fund upon legislative appropriation, with no interest paid on refunded amounts and allows the department to recover erroneous refunds within three years.