Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 187


Introduced by Assembly Member Bonta

January 28, 2013


An actbegin delete relating to ammunition.end deletebegin insert to amend Section 1656.1 of the Civil Code, to add Title 7 (commencing with Section 14001) to Part 4 of the Penal Code, and to add Part 14.5 (commencing with Section 33001) to Division 2 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 187, as amended, Bonta. begin deleteAmmunition. end deletebegin insertTaxation: ammunition: Public Safety Emergency Prevention Fund.end insert

begin insert

Existing sales and use tax laws impose taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or 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.

end insert
begin insert

This bill would impose a tax upon retailers for the privilege of selling ammunition at the rate of 10% of the gross receipts of any retailer from the sale of ammunition sold at retail in this state on or after January 1, 2014. It would also impose a comparable excise tax on the storage, use, or other consumption in this state of ammunition purchased from a retailer for the storage, use, or other consumption in this state, as provided. The taxes would be collected pursuant to the Fee Collection Procedures Law. This bill would require that revenues collected pursuant to these taxes be deposited in the Public Safety Emergency Prevention Fund, which the bill would create. The moneys in the fund would be allocated, upon appropriation by the Legislature, to the Office of Emergency Services to fund public safety programs in high crime municipalities.

end insert
begin insert

Because this bill would expand the scope of the Fee Collection Procedures Law, the violation of which is a crime, and would create crimes for specified retailer misconduct, it would impose a state-mandated local program.

end insert
begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert
begin insert

This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.

end insert
begin insert

This bill would take effect immediately as a tax levy.

end insert
begin delete

Existing law prohibits that a handgun ammunition vendor, as defined, from selling, offering for sale, or displaying for sale, any handgun ammunition in a manner that allows that ammunition to be accessible to a purchaser without the assistance of the vendor or employee thereof. Existing law requires, subject to exceptions, that handgun ammunition vendors obtain a thumbprint and other information from ammunition purchasers, as specified.

end delete
begin delete

This bill would state the intent of the Legislature to enact legislation that would establish a tax on all ammunition sold in retail stores and gun shows in the state and direct tax revenue to a fund to prevent crime in high-crime areas of the state.

end delete

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertThe Legislature finds and declares all of the
2following:end insert

begin insert

3(a) California recognizes a clearly defined nexus between the
4use of guns in violent crime and access to guns and ammunition.

end insert
begin insert

P3    1(b) While many factors can contribute to an increase in gun
2crime, one important way to reduce crime is through proper
3funding of public safety services.

end insert
begin insert

4(c) Communities, such as Oakland and Stockton, have been
5suffering from spikes in violent crime with 131 and 71 homicides
6reported in 2012, respectively, in conjunction with reductions in
7public safety budgets and street-level police forces. There is a
8clear and compelling risk to the safety of the public in these
9communities.

end insert
begin insert

10(d) The Legislature, therefore, finds and declares that providing
11a source of stable revenue through a tax on the sale of ammunition
12to fund vital public safety programs in high crime municipalities
13will serve California’s best interest by likely reducing acts of
14violence committed with a deadly weapon in the state and thereby
15promoting the health and safety of the state’s residents.

end insert
16begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 1656.1 of the end insertbegin insertCivil Codeend insertbegin insert is amended to read:end insert

17

1656.1.  

(a) Whether a retailer may add sales tax reimbursement
18to the sales price of the tangible personal property sold at retail to
19a purchaser depends solely upon the terms of the agreement of
20sale. It shall be presumed that the parties agreed to the addition of
21sales tax reimbursement to the sales price of tangible personal
22property sold at retail to a purchaser if:

23(1) The agreement of sale expressly provides for such addition
24of sales tax reimbursement;

25(2) Sales tax reimbursement is shown on the sales check or other
26proof of sale; or

27(3) The retailer posts in his or her premises in a location visible
28to purchasers, or includes on a price tag or in an advertisement or
29other printed material directed to purchasers, a notice to the effect
30that reimbursement for sales tax will be added to the sales price
31of all items or certain items, whichever is applicable.

32(b) It shall be presumed that the property, the gross receipts
33from the sale of which is subject to the sales tax, is sold at a price
34which includes tax reimbursement if the retailer posts in his or her
35premises, or includes on a price tag or in anbegin delete advertisement
36(whichever is applicable)end delete
begin insert advertisement, whichever is applicable,end insert
37 one of the following notices:

38(1) “All prices of taxable items include sales tax reimbursement
39computed to the nearest mill.”

P4    1(2) “The price of this item includes sales tax reimbursement
2computed to the nearest mill.”

3(c) (1) The State Board of Equalization shall prepare and make
4available for inspection and duplication or reproduction a sales
5tax reimbursement schedule which shallbegin delete be identical with the
6following tables up to the amounts specified therein:end delete
begin insert set forth the
7various rates of tax then in effect as applied to price ranges from
8one cent ($0.01) to at least one dollar ($1).end insert


9

 

begin delete

434 percent

Price   Tax

.01-.10    .00

.11-.31    .01

.32-.52    .02

.53-.73    .03

.74-.94    .04

.95-1.15    .05

 

5 percent

Price   Tax

.01-.09    .00

.10-.29    .01

.30-.49    .02

.50-.69    .03

.70-.89    .04

.90-1.09    .05

 

514 percent

Price   Tax

.01-.09    .00

.10-.28    .01

.29-.47    .02

.48-.66    .03

.67-.85    .04

.86-1.04    .05

 

512 percent

Price   Tax

.01-.09    .00

.10-.27    .01

.28-.45    .02

.46-.63    .03

.64-.81    .04

.82-.99    .05

1.00-1.18    .06

 

534 percent

Price   Tax

.01-.08    .00

.09-.26    .01

.27-.43    .02

.44-.60    .03

.61-.78    .04

.79-.95    .05

.96-1.13    .06

 

6 percent

Price   Tax

.01-.08    .00

.09-.24    .01

.25-.41    .02

.42-.58    .03

.59-.74    .04

.75-.91    .05

.92-1.08    .06

 

614 percent

Price   Tax

.01-.07    .00

.08-.23    .01

.24-.39    .02

.40-.55    .03

.56-.71    .04

.72-.87    .05

.88-1.03    .06

 

612 percent

Price   Tax

.01-.07    .00

.08-.23    .01

.24-.38    .02

.39-.53    .03

.54-.69    .04

.70-.84    .05

.85-.99    .06

1.00-1.15    .07

 

634 percent

Price   Tax

.01-.07    .00

.08-.22    .01

.23-.3 7    .02

.38-.5 1    .03

.52-.66    .04

.67-.81    .05

.82-.96    .06

.97-1.11    .07

 

7 percent

Price   Tax

.01-.07    .00

.08-.21    .01

.22-.35    .02

.36-.49    .03

.50-.64    .04

.65-.78    .05

.79-.92    .06

.93-1.07    .07

 

714 percent

Price   Tax

.01-.06    .00

.07-.20    .01

.21-.34    .02

.35-.48    .03

.49-.62    .04

.63-.75    .05

.76-.89    .06

.90-1.03    .07

 

712 percent

Price   Tax

.01-.06    .00

.07-.19    .01

.20-.33    .02

.34-.46    .03

.47-.59    .04

.60-.73    .05

.74-.86    .06

.87-.99    .07

1.00-1.13    .08

end delete

 

P7   13(2) Reimbursement on sales prices in excess of those shown in
14the schedulesbegin insert prepared pursuant to paragraph (1)end insert may be
15computed by applying the applicable tax rate to the sales price,
16rounded off to the nearest cent by eliminating any fraction less
17than one-half cent and increasing any fraction of one-half cent or
18over to the next higher cent.

19(3) If sales tax reimbursement is added to the sales price of
20tangible personal property sold at retail, the retailer shall use a
21schedule provided by the board, or a schedule approved by the
22board.

23(d) The presumptions created by this section are rebuttable
24presumptions.

begin insert

25(e) For purposes of this section, as applied to Part 14.5
26(commencing with Section 33001) of Division 2 of the Revenue
27and Taxation Code, sales tax reimbursement shall refer to
28reimbursement for the tax imposed by that part, and tangible
29personal property shall include ammunition as defined under that
30part.

end insert
31begin insert

begin insertSEC. 3.end insert  

end insert

begin insertTitle 7 (commencing with Section 14001) is added to
32Part 4 of the end insert
begin insertPenal Codeend insertbegin insert, to read:end insert

begin insert

33 

34Title begin insert7.end insert  Public Safety Emergency Prevention
35Fund

36

 

37

begin insert14001.end insert  

The Public Safety Emergency Prevention Fund is hereby
38created in the State Treasury. All moneys raised pursuant to the
39taxes imposed by Sections 33021 and 33022 of the Revenue and
P8    1Taxation Code shall be deposited in the Public Safety Emergency
2Prevention Fund.

3

begin insert14002.end insert  

All moneys in the fund shall, upon appropriation by
4the Legislature, be expended by the Office of Emergency Services
5to support public safety programs in high crime municipalities.

end insert
6begin insert

begin insertSEC. 4.end insert  

end insert

begin insertPart 14.5 (commencing with Section 33001) is added
7to Division 2 of the end insert
begin insertRevenue and Taxation Codeend insertbegin insert, to read:end insert

begin insert

8 

9PART begin insert14.5.end insert  Ammunition Tax Law

10

 

11Chapter  begin insert1.end insert General Provisions and Definitions
12

 

13

begin insert33001.end insert  

This part shall be known and may be cited as the
14Ammunition Tax Law.

15

begin insert33002.end insert  

For purposes of this part:

16(a) “Ammunition” includes, but is not limited to, any bullet,
17cartridge, or projectile capable of being fired from a firearm with
18a deadly consequence. “Ammunition” does not include blanks.

19(b) “Firearm” means a device, designed to be used as a weapon,
20from which is expelled through a barrel, a projectile by the force
21of an explosion or other form of combustion.

22(c) “Retailer engaged in business in this state” has the same
23meaning as defined in Section 6203.

24

begin insert33012.end insert  

Unless the context otherwise requires, the definitions
25provided in Chapter 1 (commencing with Section 6001) of Part 1
26govern the construction of this part.

27 

28Chapter  begin insert2.end insert Imposition of Tax
29

 

30

begin insert33021.end insert  

In addition to the tax imposed under Chapter 2
31(commencing with Section 6051) of Part 1, for the privilege of
32selling ammunition at retail there is hereby imposed a tax upon
33all retailers at the rate of 10 percent of the gross receipts of any
34retailer from the sale of all ammunition sold at retail in this state
35on or after January 1, 2014.

36

begin insert33022.end insert  

(a) In addition to the tax imposed under Chapter 3
37(commencing with Section 6201) of Part 1, an excise tax is hereby
38imposed on the storage, use, or other consumption in this state of
39ammunition purchased from any retailer on or after January 1,
P9    12014, for storage, use, or other consumption in this state at the
2rate of 10 percent of the sales price of the ammunition.

3(b) Every person storing, using, or otherwise consuming in this
4state ammunition purchased from a retailer is liable for the tax.
5His or her liability is not extinguished until the tax has been paid
6to this state except that a receipt from a retailer engaged in
7business in this state or from a retailer who is authorized by the
8board, under the rules and regulations as it may prescribe, to
9collect the tax and who is, for the purposes of this part relating to
10the use tax, regarded as a retailer engaged in business in this state,
11given to the purchaser pursuant to subdivision (c) is sufficient to
12relieve the purchaser from further liability for the tax to which the
13receipt refers.

14(c) Every retailer engaged in business in this state and making
15sales for storage, use, or other consumption in this state, not
16exempted under Chapter 3 (commencing with Section 33031),
17shall, at the time of making the sales or, if the storage, use, or
18other consumption of ammunition is not then taxable hereunder,
19at the time the storage, use, or other consumption becomes taxable,
20collect the tax from the purchaser and give to the purchaser a
21receipt therefor in the manner and form prescribed by the board.

22(d) The tax required to be collected by the retailer and any
23amount unreturned to the customer which is not tax but was
24collected from the customer under the representation by the retailer
25that it was tax constitutes debts owed by the retailer to this state.

26(e) It is unlawful for any retailer to advertise or hold out or
27state to the public or to any customer, directly or indirectly, that
28the tax or any part thereof will be assumed or absorbed by the
29retailer or that it will not be added to the selling price of the
30property sold or that if added it or any part thereof will be
31refunded.

32(f) The tax required to be collected by the retailer from the
33purchaser shall be displayed separately from the list price, the
34price advertised in the premises, the marked price, or other price
35on the sales check or other proof of sales.

36(g) Any person violating subdivision (c), (e), or (f) is guilty of
37a misdemeanor.

 

P10   1Chapter  begin insert3.end insert Exemption
2

 

3

begin insert33031.end insert  

There are exempted from the taxes imposed by this part,
4the sale of, or the storage, use, or other consumption of,
5ammunition purchased by any peace officer required to carry or
6use a firearm that uses ammunition while on duty, or by any
7governmental law enforcement agency employing that peace
8officer, for use in the normal course of employment.

9 

10Chapter  begin insert4.end insert Collection and Administration
11

 

12

begin insert33041.end insert  

The board shall administer and collect the tax imposed
13by this part pursuant to the Fee Collection Procedures Law (Part
1430 (commencing with Section 55001)). For purposes of this part,
15the references in the Fee Collection Procedures Law to “fee” shall
16include the tax imposed by this part and references to “feepayer”
17shall mean any person liable for the payment of the taxes imposed
18under this part and collected pursuant to that law.

19

begin insert33042.end insert  

The taxes imposed by this part are due and payable to
20the board quarterly on or before the last day of the month next
21succeeding each quarterly period of three months.

22

begin insert33043.end insert  

On or before the last day of the month following each
23quarterly period a return for the preceding quarterly period shall
24be filed with the board.

25 

26Chapter  begin insert5.end insert Disposition of Proceeds
27

 

28

begin insert33051.end insert  

All amounts required to be paid under this part shall
29be made in remittances to the board, and those revenues, net of
30refunds and costs of administration, and shall be deposited in the
31Public Safety Emergency Prevention Fund, established pursuant
32to Section 14001 of the Penal Code.

end insert
33begin insert

begin insertSEC. 5.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
34Section 6 of Article XIII B of the California Constitution because
35the only costs that may be incurred by a local agency or school
36district will be incurred because this act creates a new crime or
37infraction, eliminates a crime or infraction, or changes the penalty
38for a crime or infraction, within the meaning of Section 17556 of
39the Government Code, or changes the definition of a crime within
P11   1the meaning of Section 6 of Article XIII B of the California
2Constitution.

end insert
3begin insert

begin insertSEC. 6.end insert  

end insert
begin insert

This act provides for a tax levy within the meaning of
4Article IV of the Constitution and shall go into immediate effect.

end insert
begin delete
5

SECTION 1.  

It is the intent of the Legislature that would enact
6legislation to establish a tax on all ammunition sold in retail stores
7and gun shows in the state and direct the revenue from the tax to
8a high-crime prevention fund for crime prevention efforts in
9high-crime areas of the state.

end delete


O

    98