BILL NUMBER: AB 136	CHAPTERED  08/09/01

	CHAPTER  161
	FILED WITH SECRETARY OF STATE  AUGUST 9, 2001
	APPROVED BY GOVERNOR  AUGUST 8, 2001
	PASSED THE SENATE  JULY 20, 2001
	PASSED THE ASSEMBLY  JUNE 4, 2001
	AMENDED IN ASSEMBLY  MARCH 28, 2001

INTRODUCED BY   Assembly Member Corbett
   (Principal coauthor: Assembly Member Runner)

                        JANUARY 23, 2001

   An act to amend Section 241 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 136, Corbett.  Personal property tax:  hand tool exemption.
   The California Constitution authorizes the Legislature to exempt
personal property from taxation by means of a statute approved by a
2/3 vote of the membership of each house.  Under this authorization,
the Legislature has exempted from ad valorem taxation the first
$20,000 worth of hand tools that are owned and supplied by an
employee as a condition of employment.
   This bill would increase the exemption amount to the first $50,000
worth of hand tools that are owned and supplied by an employee.
   Section 2229 of the Revenue and Taxation Code requires the
Legislature to reimburse local agencies annually for certain property
tax revenues lost as a result of any exemption or classification of
property for purposes of ad valorem property taxation.
   This bill would provide that, notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse local agencies for property tax revenues lost by
them pursuant to the bill.
   This bill would take effect immediately as a tax levy.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 241 of the Revenue and Taxation Code is amended
to read:
   241.  (a) The first fifty thousand dollars ($50,000) of personal
property that consists of hand tools owned and supplied by an
employee that are required as a condition of that employee's
employment are exempt from taxation.
   (b) For purposes of this section:
   (1) "Hand tools" means hand-held implements and equipment,
including hand-held power tools, of which any one may be transported
to and from the workplace and which are necessary for the ordinary
and regular performance of the employee's work, and also means the
appropriate storage containers used to store those implements and
that equipment.
   (2) "Hand tools owned and supplied by an employee" means only
those hand tools that are either owned by the employee prior to the
employment or acquired and paid for by the employee during the
employment, that the employee will continue to own after termination
of the employment.
   (3) "Employee" means any individual who is employed by an employer
that directly or indirectly supervises that person and exercises
control over the wages and working conditions of individual workers.
"Employee" does not include a self-employed individual or an
independent contractor.
  SEC. 2.  Notwithstanding Section 2229 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse any local agency for any property tax revenues lost by it
pursuant to this act.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.