BILL NUMBER: AB 2323 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 1, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Perea
FEBRUARY 24, 2012
An act to amend Section 6355 of add
Section 40 to the Revenue and Taxation Code, relating to
taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2323, as amended, Perea. State Board of Equalization:
nonmonetized bullion and numismatic coins: adjustment date.
administration: opinions.
The California Constitution establishes the State Board of
Equalization and prescribes its various powers and duties in
connection with various taxes, including administration, assessment,
and collection. The State Board of Equalization also collects and
administers various fees imposed under specified programs and serves
as an arbiter for the resolution of disputes involving the imposition
of fees and taxes, including those taxes administered by the
Franchise Tax Board.
This bill would require the board to publish and make available on
its Internet Web site a written formal legal opinion or a written
memorandum opinion for each case in which the amount in controversy
is $500,000 or more. This bill would require each published opinion
to contain specified information, and would require the board to
determine the precedential value of each formal opinion and each
memorandum opinion at its discretion.
The Sales and Use Tax Law exempts from the sales and use taxes the
gross receipts from the sales in bulk of monetized bullion,
nonmonetized gold and silver bullion, and numismatic coins, and the
storage, use, or other consumption of those bullion and coins, as
provided, and requires the State Board of Equalization to adjust the
initial bulk threshold amount on or before September 1.
This bill would change the adjustment date to October 1.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 40 is added to the
Revenue and Taxation Code , to read:
40. (a) The board shall publish and make available on its
Internet Web site a written formal legal opinion or a written
memorandum opinion for each case in which the amount in controversy
is five hundred thousand dollars ($500,000) or more.
(b) Each published opinion shall include all of the following:
(1) Factual background.
(2) The legal issue or issues presented.
(3) Applicable law.
(4) Analysis.
(5) Disposition.
(6) Names of concurring board members.
(c) A board member may write a dissenting opinion should he or she
disagree with the majority opinion.
(d) The board shall determine the precedential value of each
formal legal opinion and each memorandum opinion at its discretion.
SECTION 1. Section 6355 of the Revenue and
Taxation Code is amended to read:
6355. (a) There are exempted from the taxes imposed by this part
the gross receipts from the sale in bulk of monetized bullion,
nonmonetized gold or silver bullion, and numismatic coins that are
substantially equivalent to transactions in securities or commodities
through a national securities or commodities exchange and the
storage, use, or other consumption in this state of monetized
bullion, nonmonetized gold or silver bullion, and numismatic coins so
sold.
(b) (1) A sale in bulk, for purposes of this section, shall be
deemed to have occurred if the amount of monetized bullion,
nonmonetized gold or silver bullion, and numismatic coins sold in the
transaction totals, in market value, the sum of one thousand dollars
($1,000) or more, or its equivalent.
(2) The board shall adjust the one thousand dollar ($1,000) amount
specified in paragraph (1) as follows:
(A) On or before September 1, 1994, and on or before each October
1 of each year thereafter, the board shall multiply the amount
applicable for the current calendar year by the inflation factor
adjustment determined by the Franchise Tax Board pursuant to
subdivision (h) of Section 17041, the resulting amount to be the
applicable amount for the succeeding calendar year. The applicable
amount shall be operative as an adjustment of the amount specified in
paragraph (1) only when the applicable amount computed is equal to
or exceeds a new operative threshold, as defined in subparagraph (C).
(B) When the applicable amount equals or exceeds an operative
threshold specified in subparagraph (C), the resulting applicable
amount, rounded to the nearest multiple of five hundred dollars
($500), shall be operative for purposes of paragraph (1) beginning
January 1 of the succeeding calendar year.
(C) For purposes of this paragraph, "operative threshold" means an
amount that exceeds by at least five hundred dollars ($500), the
greater of either the amount specified in paragraph (1) or the amount
computed pursuant to subparagraphs (A) and (B) as the operative
adjustment to the amount specified in paragraph (1).
(c) "Monetized bullion," for purposes of this section, means coins
or other forms of money manufactured of gold, silver, or other metal
and heretofore, now, or hereafter used as a medium of exchange under
the laws of this state, the United States, or any foreign nation.
"Monetized bullion," for purposes of this section, also means gold
medallions struck under authority of the American Arts Gold Medallion
Act (Title IV of Public Law 95-630).
(d) A sale of monetized bullion, nonmonetized gold or silver
bullion, or numismatic coins, for purposes of this section, shall be
deemed to be substantially equivalent to a transaction in securities
or commodities through a national securities or commodities exchange,
if the sale is by or through a person registered pursuant to the
Commodity Exchange Act (7 U.S.C. Sec. 1 et seq.) or not required to
be registered under the Commodity Exchange Act.