AB 542, as introduced, Harkey. Sales and use tax.
The Sales and Use Tax Law imposes a tax 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. That law includes as a retail sale, a sale of tangible personal property to a contractor or subcontractor for use in the performance of construction contracts with the United States.
This bill would make a technical, nonsubstantive change to those provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 6007.5 of the Revenue and Taxation
2Code is amended to read:
A sale of tangible personal property to a contractor or
4subcontractor for use in the performance of contracts with the
5United States for the construction of improvements on or to real
P2 1property in thisbegin delete Stateend deletebegin insert stateend insert is a retail sale. The gross receipts from
2such a sale or the sales price of property so sold shall be included
3in the measure of the taxes imposed by this part.
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