BILL NUMBER: AB 1595	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Cook

                        FEBRUARY 6, 2012

   An act to amend Sections 6051 and 6201 of the Revenue and Taxation
Code, relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1595, as introduced, Cook. Sales and use taxes: rate reduction:
unemployment rate.
   Existing law imposes a state sales and use tax on retailers and on
the storage, use, or other consumption of tangible personal property
in this state at the rate of 61/4% of the gross receipts from the
retail sale of tangible personal property in this state and of the
sales price of tangible personal property purchased from any retailer
for storage, use, or other consumption in this state.
   This bill would, commencing on July 1, 2013, decrease the state
sales and use tax rate by 1/2 of 1%. This bill would require the rate
reduction to take effect only if the California unemployment rate
average for the last 2 quarters of 2012 is 8% or higher, and would
require the rate reduction to remain in effect only until the
California unemployment rate is less than 8% for 3 consecutive
quarters, as provided.
   This bill would take effect immediately as a tax levy.
   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.  Section 6051 of the Revenue and Taxation Code is
amended to read:
   6051.   (a)    For the privilege of selling
tangible personal property at retail a tax is hereby imposed upon all
retailers at the rate of 21/2 percent of the gross receipts of any
retailer from the sale of all tangible personal property sold at
retail in this state on or after August 1, 1933, and to and including
June 30, 1935, and at the rate of 3 percent thereafter, and at the
rate of 21/2 percent on and after July 1, 1943, and to and including
June 30, 1949, and at the rate of 3 percent on and after July 1,
1949, and to and including July 31, 1967, and at the rate of 4
percent on and after August 1, 1967, and to and including June 30,
1972, and at the rate of 33/4 percent on and after July 1, 1972, and
to and including June 30, 1973, and at the rate of 43/4 percent on
and after July 1, 1973, and to and including September 30, 1973, and
at the rate of 33/4 percent on and after October 1, 1973, and to and
including March 31, 1974, and at the rate of 43/4 percent thereafter.

   (b) (1) Notwithstanding subdivision (a), on and after July 1,
2013, the rate shall be 31/4 percent. 
   (2) The rate reduction required pursuant to paragraph (1) shall
only take effect if the California unemployment rate average for the
last two calendar quarters of 2012 is 8 percent or higher, and shall
remain in effect only until the end of the calendar quarter in which
the California unemployment rate is less than 8 percent for three
consecutive calendar quarters. 
  SEC. 2.  Section 6201 of the Revenue and Taxation Code is amended
to read:
   6201.   (a)    An excise tax is hereby imposed
on the storage, use, or other consumption in this state of tangible
personal property purchased from any retailer on or after July 1,
1935, for storage, use, or other consumption in this state at the
rate of 3 percent of the sales price of the property, and at the rate
of 21/2 percent on and after July 1, 1943, and to and including June
30, 1949, and at the rate of 3 percent on and after July 1, 1949,
and to and including July 31, 1967, and at the rate of 4 percent on
and after August 1, 1967, and to and including June 30, 1972, and at
the rate of 33/4 percent on and after July 1, 1972, and to and
including June 30, 1973, and at the rate of 43/4 percent on and after
July 1, 1973, and to and including September 30, 1973, and at the
rate of 33/4 percent on and after October 1, 1973, and to and
including March 31, 1974, and at the rate of 43/4 percent thereafter.

   (b) (1) Notwithstanding subdivision (a), on and after July 1,
2013, the rate shall be 33/4 percent.  
   (2) The rate reduction required pursuant to paragraph (1) shall
only take effect if the California unemployment rate average for the
last two calendar quarters of 2012 is 10 percent or higher, and shall
remain in effect only until the end of the calendar quarter in which
the California unemployment rate is less than 10 percent for three
consecutive calendar quarters. 
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.