BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2270| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ CONSENT Bill No: AB 2270 Author: Harkey (R) Amended: 4/17/12 in Assembly Vote: 21 SENATE GOVERNANCE & FINANCE COMMITTEE : 9-0, 6/28/12 AYES: Wolk, Dutton, DeSaulnier, Fuller, Hernandez, Kehoe, La Malfa, Liu, Yee SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 72-0, 5/3/12 (Consent) - See last page for vote SUBJECT : Sales and use tax: use SOURCE : Board of Equalization DIGEST : This bill provides that, for reporting periods, beginning on or after January 1, 2012, the qualified use tax of an eligible purchaser shall be due and payable to the Board of Equalization (BOE) on or before April 15th following the close of the calendar year in which the use tax liability was incurred. ANALYSIS : Existing law imposes a sales tax and complementary use tax on retailers for the privilege of selling tangible personal property based upon the retailer's gross receipts in this state, unless specifically exempted. The use tax is imposed on the CONTINUED AB 2270 Page 2 purchaser for the storage, use, or other consumption in this state of goods purchased from any retailer. The standard statewide sales and use tax is 7.25%. Cities, counties and special districts may impose an additional transactions and use tax (sales tax) with voter approval as well. Existing law allows taxpayers to pay their use tax liability either directly to the BOE by January 31st or on their income tax returns by April 15th. This bill provides that the "qualified use tax" as defined by current law of an "eligible purchaser" defined as a purchaser of goods subject to the use tax shall be due and payable to BOE on or before April 15th following the close of the calendar year in which the use tax liability was incurred. The eligible purchaser also is not required to be registered with the BOE. This bill specifies that "qualified use tax" does not include the use tax imposed on specified mobile homes, vehicles, and leases. Comments Under existing law, a taxpayer may file his/her use tax on the income tax return by April 15th but must file his/her use tax payment directly with the BOE by January 31st. If the taxpayer pays the tax directly to the BOE on April 15th, he/she would be considered late and the individual would be subjected to the late payment penalty and interest. This bill makes the dates consistent and less confusing for the taxpayer. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 8/8/12) Board of Equalization (source) California Society of Enrolled Agents Senator George Runner (Retired), BOE Member OPPOSITION : (Verified 8/8/12) Department of Finance CONTINUED AB 2270 Page 3 ASSEMBLY FLOOR : 72-0, 5/3/12 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman, Halderman, Harkey, Hayashi, Hill, Huber, Hueso, Huffman, Jeffries, Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva, Skinner, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Yamada, John A. Pérez NO VOTE RECORDED: Bonilla, Fletcher, Furutani, Hall, Roger Hernández, Jones, Smyth, Williams AGB:m 8/8/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED