BILL NUMBER: SB 516	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 4, 2012

INTRODUCED BY   Senator Correa

                        FEBRUARY 17, 2011

   An act to  amend Sections 6011 and 6012   add
and repeal Sections 6011.3 and 6012.3  of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 516, as amended, Correa. Sales and use taxes: exclusion:
trade-in motorcycle.
   The Sales and Use Tax Law imposes a tax on the gross receipts from
the sale of tangible personal property sold at retail in this state,
or on the sales price of tangible personal property purchased from a
retailer for the storage, use, or other consumption of that property
in this state. That law defines the terms "gross receipts" and
"sales price."
   This bill would  , until January 1, 2017,  provide, for
purposes of that law, that the terms "gross receipts" and "sales
price" do not include the value of a motorcycle traded in for a new
motorcycle, if the value of the trade-in motorcycle is separately
stated on the new motorcycle invoice or bill of sale or similar
document provided to the purchaser.
   The Bradley-Burns Uniform Sales and Use Tax Law authorizes
counties and cities to impose local sales and use taxes in conformity
with the Sales and Use Tax Law, and existing law authorizes
districts, as specified, to impose transactions and use taxes in
accordance with the Transactions and Use Tax Law which conforms to
the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law
are incorporated into these laws. Section 2230 of the Revenue and
Taxation Code provides that the state will reimburse counties and
cities for revenue losses caused by the enactment of sales and use
tax exemptions.
   This bill would provide that, notwithstanding Section 2230 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse counties and cities for sales and use tax
revenues lost by them pursuant to this bill.
   This bill would take effect immediately as a tax levy, but its
operative date would depend on its effective date.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

   SECTION 1.    Section 6011.3 is added to the 
 Revenue and Taxation Code   , to read:  
   6011.3.  (a) (1) Notwithstanding Section 6011, "sales price" does
not include the value of a motorcycle traded in for a new motorcycle
if the value of the trade-in motorcycle is separately stated on the
new motorcycle invoice or bill of sale or similar document provided
to the purchaser.
   (2) For purposes of this section, "motorcycle" means a motorcycle
as defined in Section 400 of the Vehicle Code.
   (b) This section shall remain in effect only until January 1,
2017, and as of that date is repealed. 
   SEC. 2.   Section 6012.3 is added to the  
Revenue and Taxation Code   , to read:  
   6012.3.  (a) (1) Notwithstanding Section 6012, "gross receipts"
does not include the value of a motorcycle traded in for a new
motorcycle if the value of the trade-in motorcycle is separately
stated on the new motorcycle invoice or bill of sale or similar
document provided to the purchaser.
   (2) For purposes of this section, "motorcycle" means a motorcycle
as defined in Section 400 of the Vehicle Code.
   (b) This section shall remain in effect only until January 1,
2017, and as of that date is repealed. 
   SEC. 3.    Notwithstanding Section 2230 of the
Revenue and Taxation Code, no appropriation is made by this act and
the state shall not reimburse any local agency for any sales and use
tax revenues lost by it under this act. 
   SEC. 4.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect. However, the provisions of this act shall become
operative on the first day of the first calendar quarter commencing
more than 90 days after the effective date of this act.  All
matter omitted in this version of the bill appears in the bill as
introduced in the Senate, February 17, 2011. (JR11)