BILL ANALYSIS Ó AB 1423 Page 1 Date of Hearing: May 9, 2011 ASSEMBLY COMMITTEE ON REVENUE AND TAXATION Henry T. Perea, Chair AB 1423 (Committee on Revenue and Taxation) - As Introduced: March 22, 2011 Majority vote. SUBJECT : Sales and use taxes: exemptions SUMMARY : Deletes obsolete provisions of the Sales and Use Tax (SUT) Law. Specifically, this bill makes purely technical amendments to existing SUT exemption provisions as a matter of code maintenance. EXISTING LAW imposes a: 1)Sales tax on retailers for the privilege of selling tangible personal property (TPP), absent a specific exemption. The tax is based upon the retailer's gross receipts from TPP sales in this state. 2)Complementary use tax on the storage, use, or other consumption in this state of TPP purchased from any retailer. FISCAL EFFECT : None. COMMENTS : This purely technical bill deletes obsolete references within the SUT Law to a potential October 1, 2001 implementation date for several SUT exemptions. REGISTERED SUPPORT / OPPOSITION : Support None on file Opposition None on file Analysis Prepared by : M. David Ruff / REV. & TAX. / (916) AB 1423 Page 2 319-2098