BILL NUMBER: SB 354	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Wright

                        FEBRUARY 25, 2009

   An act to add and repeal Chapter 3.7 (commencing with Section
7292) of Part 1.7 of Division 2 of the Revenue and Taxation Code,
relating to taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 354, as introduced, Wright. State Board of Equalization: local
tax revenues: video.
   The State Board of Equalization administers various taxes,
including specified local sales, use, and transactions and use taxes.

   This bill would require the board to study the impact of new video
and voice alternatives on local tax and fee revenues and report to
the Legislature, as provided.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Chapter 3.7 (commencing with Section 7292) is added to
Part 1.7 of Division 2 of the Revenue and Taxation Code, to read:
      CHAPTER 3.7.  STUDY ON THE IMPACT OF TECHNOLOGY ON LOCAL TAXES


   7292.  The Legislature finds and declares all of the following:
   (a) As wired, terrestrial wireless, satellite, Internet, and
digital technologies evolve, new choices being exercised by consumers
are having an impact on revenues received by local governments.
   (b) Some video and voice technologies subject consumers to sales
and use taxes, utility user taxes, or franchise fees, or some
combination of these local taxes and fees, and some do not.
   (c)  While the imposition of these taxes and fees are within the
jurisdiction of local governments, the impact of technological change
on these local taxes and fees is a matter of statewide concern not
only to preserve local revenues, but also to ensure that total taxes
and fees neither discourage investment nor make those services too
expensive for consumers.
   (d) In order to inform the Legislature's consideration of the
public's interest in this regard, it is vital to have objective data
on revenue derived through these local taxes, fees, and trends
related thereto.
   7293.  The State Board of Equalization shall study the impact of
new video and voice alternatives on local tax and fee revenues and
report its findings to the Legislature on or before December 1, 2009.

   7294.  The report of the board shall contain an appendix
containing the annual revenue receipts for all relevant local taxes
and fees for voice and video goods and services starting in 2003.
   7295.  This chapter shall remain in effect only to January 1,
2010, and as of that date is repealed.