Amended in Assembly April 8, 2013

Amended in Assembly March 4, 2013

Amended in Assembly February 20, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 143

Introduced by Assembly Member Holden

(Coauthors: Assembly Members Chávez and Fox)

January 17, 2013

An act to add begin insert and repeal end insert Section 6412 begin delete to end delete begin insert of end insert the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

AB 143, as amended, Holden. Use taxes: exemption: Armed Forces: National Guard: transfer orders.

The Sales and Use Tax Law imposes use taxes on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, presumes tangible personal property purchased outside the state that is stored, used, or consumed in this state is purchased for use in this state begin insert , end insert and excludes from use taxes, tangible personal property purchased and used outside this state for specified periods of time. Existing law excludes from use taxes the storage, use, or other consumption of a vehicle purchased by a service member prior to receipt of official orders transferring him or her to this state, as provided.

This bill would begin insert , until January 1, 2019, end insert exempt from use taxes the storage, use, or other consumption in this state of tangible personal property, other than a vehicle, vessel, or aircraft, begin delete purchased by a member of the Armed Forces of the United States, the reserve components of the Armed Forces of the United States, or the National Guard on active duty who had received official orders transferring him or her to this state, or his or her spouse, as provided. end delete begin insert purchased while outside this state by a qualified service member, as defined, or a qualified service member’s spouse or registered domestic partner, prior to the report date on official orders transferring the qualified service member to this state. end insert

The Bradley-Burns Uniform Local Sales and Use Tax 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 to impose transactions and use taxes in accordance with the Transactions and Use Tax Law which conforms to the Sales and Use Tax Law. Exemptions from state sales and use taxes 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 local agencies 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 6412 is added to the Revenue and
Taxation Code, to read:

6412.  

(a) The storage, use, or other consumption in this state
of qualified tangible personal property purchased by a begin delete member of
the Armed Forces of the United States, the reserve components of
the Armed Forces of the United States, or the National Guard on
active duty who had received official orders transferring him or
her to this state, or his or her spouse, end delete begin insert qualified service member or
a qualified service member’s spouse or registered domestic partner
while outside the state and prior to the report date on official
orders transferring the qualified service member to this state end insert is
exempt from use begin delete tax if the qualified tangible personal property is
purchased prior to the report date on the official orders and while
the purchaser is outside this state. end delete begin insert tax. end insert

(b) For purposes of this section, begin delete “tangible personal property”
means tangible personal property that is not an aircraft, vehicle,
or vessel. end delete begin insert all of the following shall apply: end insert

begin insert

(1) “Qualified service member” means a member of the Armed
Forces of the United States on active duty, a member of reserve
components of the Armed Forces of the United States on active
duty, or a member of the National Guard on active duty.

end insert begin insert

(2) “Qualified tangible personal property” means tangible
personal property other than a vehicle, vessel, or aircraft.

end insert begin insert

(3) “Registered domestic partner” means a person that meets
the requirements of Section 297 of the Family Code, and includes
a person in a union recognized as a valid domestic partnership as
provided in Section 299.2 of the Family Code.

end insert begin insert

(c) This section shall remain in effect only until January 1, 2019,
and as of that date is repealed.

end insert

SEC. 2.  

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. 3.  

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.