SB 732, as amended, Berryhill. Sales and use taxes: exclusion: trade-in passenger vehicle.
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 of tangible personal property purchased from a retailer for the storage, use, or other consumption in this state measured by sales price. That law defines the terms “gross receipts” and “sales price.”
This bill wouldbegin insert, until January 1, 2017,end insert exclude from the terms “gross receipts” and “sales price” the value of a passenger vehicle traded in for a new passenger vehicle, including a new pickup truck,begin insert or a new motorcycle,end insert if the value
of the trade-in passenger vehicle is separately stated on the newbegin delete motorend deletebegin insert passengerend insert vehiclebegin insert or new motorcycleend insert invoice or bill of sale or similar document provided to the purchaser.
The Bradley-Burns Uniform Local 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 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 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 6011 of the Revenue and Taxation Code
2 is amended to read:
(a) “Sales price” means the total amount for which
4tangible personal property is sold or leased or rented, as the case
5may be, valued in money, whether paid in money or otherwise,
6without any deduction on account of any of the following:
7(1) The cost of the property sold.
8(2) The cost of materials used, labor or service cost, interest
9charged, losses, or any other expenses.
10(3) The cost of transportation of the property, except as excluded
11by other provisions of this section.
12(b) The total amount for which the property is sold or leased or
13rented includes all of the following:
14(1) Any services that are a part of the sale.
15(2) Any amount for which credit is given to the purchaser by
16the seller.
17(3) The amount of any tax imposed by the United States upon
18producers and importers of gasoline and the amount of any tax
19imposed pursuant to Part 2 (commencing with Section 7301) of
20this division.
21(c) “Sales price” does not include any of the following:
22(1) Cash discounts allowed and taken on sales.
23(2) The
amount charged for property returned by customers
24when that entire amount is refunded either in cash or credit, but
P3 1this exclusion shall not apply in any instance when the customer,
2in order to obtain the refund, is required to purchase other property
3at a price greater than the amount charged for the property that is
4returned. For the purpose of this section, refund or credit of the
5entire amount shall be deemed to be given when the purchase price
6less rehandling and restocking costs are refunded or credited to
7the customer. The amount withheld for rehandling and restocking
8costs may be a percentage of the sales price determined by the
9average cost of rehandling and restocking returned merchandise
10during the previous accounting cycle.
11(3) The amount charged for labor or services rendered in
12installing or applying the property sold.
13(4) (A) The amount of any tax (not including, however, any
14manufacturers’ or importers’ excise tax, except as provided in
15subparagraph (B)) imposed by the United States upon or with
16respect to retail sales whether imposed upon the retailer or the
17consumer.
18(B) The amount of manufacturers’ or importers’ excise tax
19imposed pursuant to Section 4081 or 4091 of the Internal Revenue
20Code for which the purchaser certifies that he or she is entitled to
21either a direct refund or credit against his or her income tax for
22the federal excise tax paid or for which the purchaser issues a
23certificate pursuant to Section 6245.5.
24(5) The amount of any tax imposed by any city, county, city
25and county, or rapid
transit district within the State of California
26upon or with respect to retail sales of tangible personal property,
27measured by a stated percentage of sales price or gross receipts,
28whether imposed upon the retailer or the consumer.
29(6) The amount of any tax imposed by any city, county, city
30and county, or rapid transit district within the State of California
31with respect to the storage, use, or other consumption in that city,
32county, city and county, or rapid transit district of tangible personal
33property measured by a stated percentage of sales price or purchase
34price, whether the tax is imposed upon the retailer or the consumer.
35(7) Separately stated charges for transportation from the
36retailer’s place of business or other point from which shipment is
37made directly to the purchaser,
but the exclusion shall not exceed
38a reasonable charge for transportation by facilities of the retailer
39or the cost to the retailer of transportation by other than facilities
40of the retailer. However, if the transportation is by facilities of the
P4 1retailer, or the property is sold for a delivered price, this exclusion
2shall be applicable solely with respect to transportation which
3occurs after the purchase of the property is made.
4(8) Charges for transporting landfill from an excavation site to
5a site specified by the purchaser, either if the charge is separately
6stated and does not exceed a reasonable charge or if the entire
7consideration consists of payment for transportation.
8(9) The amount of any motor vehicle, mobilehome, or
9commercial coach fee or tax imposed by and paid to the
State of
10California that has been added to or is measured by a stated
11percentage of the sales or purchase price of a motor vehicle,
12mobilehome, or commercial coach.
13(10) (A) The amount charged for intangible personal property
14transferred with tangible personal property in any technology
15transfer agreement, if the technology transfer agreement separately
16states a reasonable price for the tangible personal property.
17(B) If the technology transfer agreement does not separately
18state a price for the tangible personal property, and the tangible
19personal property or like tangible personal property has been
20previously sold or leased, or offered for sale or lease, to third
21parties at a separate price, the price at which the tangible personal
22property was sold,
leased, or offered to third parties shall be used
23to establish the retail fair market value of the tangible personal
24property subject to tax. The remaining amount charged under the
25technology transfer agreement is for the intangible personal
26property transferred.
27(C) If the technology transfer agreement does not separately
28state a price for the tangible personal property, and the tangible
29personal property or like tangible personal property has not been
30
previously sold or leased, or offered for sale or lease, to third
31parties at a separate price, the retail fair market value shall be equal
32to 200 percent of the cost of materials and labor used to produce
33the tangible personal property subject to tax. The remaining amount
34charged under the technology transfer agreement is for the
35intangible personal property transferred.
36(D) For purposes of this paragraph, “technology transfer
37agreement” means any agreement under which a person who holds
38a patent or copyright interest assigns or licenses to another person
39the right to make and sell a product or to use a process that is
40subject to the patent or copyright interest.
P5 1(11) The amount of any tax imposed upon diesel fuel pursuant
2to Part 31 (commencing with Section
60001).
3(12) (A) The amount of tax imposed by any Indian tribe within
4the State of California with respect to a retail sale of tangible
5personal property measured by a stated percentage of the sales or
6purchase price, whether the tax is imposed upon the retailer or the
7consumer.
8(B) The exclusion authorized by subparagraph (A) shall only
9apply to those retailers who are in substantial compliance with this
10part.
11(13) The value of a passenger vehicle traded in for a new
12passenger vehicle, including a new pickup truck,begin insert or a new
13motorcycle,end insert if the value of the trade-in passenger vehicle is
14separately stated on the
new passenger vehiclebegin insert or new motorcycleend insert
15 invoice or bill of sale or similar document provided to the
16purchaser.
17(A) For purposes of this paragraph:
18(i) “Passenger vehicle” means passenger vehicle as defined by
19Section 34710 of the Vehicle Code.
20(ii) “Pickup truck” means a pickup truck as defined by Section
21471 of the Vehicle Code.
22(iii) “Motorcyle” means a motorcycle as defined by Section
23400 of the Vehicle Code.
24(B) Notwithstanding clause (i) of subparagraph (A), “passenger
25vehicle” shall include a passenger vehicle equipped with four-wheel
26drive.
27(d) This section shall become inoperative on January 1, 2017,
28and is repealed as of that date.
begin insertSection 6011 is added to the end insertbegin insertRevenue and Taxation
30Codeend insertbegin insert, to read:end insert
(a) “Sales price” means the total amount for which
32tangible personal property is sold or leased or rented, as the case
33may be, valued in money, whether paid in money or otherwise,
34without any deduction on account of any of the following:
35(1) The cost of the property sold.
36(2) The cost of materials used, labor or service cost, interest
37charged, losses, or any other expenses.
38(3) The cost of transportation of the property, except as
excluded
39by other provisions of this section.
P6 1(b) The total amount for which the property is sold or leased
2or rented includes all of the following:
3(1) Any services that are a part of the sale.
4(2) Any amount for which credit is given to the purchaser by
5the seller.
6(3) The amount of any tax imposed by the United States upon
7producers and importers of gasoline and the amount of any tax
8imposed pursuant to Part 2 (commencing with Section 7301) of
9this division.
10(c) “Sales price” does not include any of the following:
11(1) Cash discounts allowed and taken on sales.
12(2) The amount charged for property returned by customers
13when that entire amount is refunded either in cash or credit, but
14this exclusion shall not apply in any instance when the customer,
15in order to obtain the refund, is required to purchase other property
16at a price greater than the amount charged for the property that
17is returned. For the purpose of this section, refund or credit of the
18entire amount shall be deemed to be given when the purchase price
19less rehandling and restocking costs are refunded or credited to
20the customer. The amount withheld for rehandling and restocking
21costs may
be a percentage of the sales price determined by the
22average cost of rehandling and restocking returned merchandise
23during the previous accounting cycle.
24(3) The amount charged for labor or services rendered in
25installing or applying the property sold.
26(4) (A) The amount of any tax (not including, however, any
27manufacturers’ or importers’ excise tax, except as provided in
28subparagraph (B)) imposed by the United States upon or with
29respect to retail sales whether imposed upon the retailer or the
30consumer.
31(B) The amount of manufacturers’ or importers’ excise tax
32imposed pursuant to Section 4081 or 4091 of the
Internal Revenue
33Code for which the purchaser certifies that he or she is entitled to
34either a direct refund or credit against his or her income tax for
35the federal excise tax paid or for which the purchaser issues a
36certificate pursuant to Section 6245.5.
37(5) The amount of any tax imposed by any city, county, city and
38county, or rapid transit district within the State of California upon
39or with respect to retail sales of tangible personal property,
P7 1measured by a stated percentage of sales price or gross receipts,
2whether imposed upon the retailer or the consumer.
3(6) The amount of any tax imposed by any city, county, city and
4county, or rapid transit district within the State of California with
5respect to the storage, use, or other consumption in that
city,
6county, city and county, or rapid transit district of tangible
7personal property measured by a stated percentage of sales price
8or purchase price, whether the tax is imposed upon the retailer or
9the consumer.
10(7) Separately stated charges for transportation from the
11retailer’s place of business or other point from which shipment is
12made directly to the purchaser, but the exclusion shall not exceed
13a reasonable charge for transportation by facilities of the retailer
14or the cost to the retailer of transportation by other than facilities
15of the retailer. However, if the transportation is by facilities of the
16retailer, or the property is sold for a delivered price, this exclusion
17shall be applicable solely with respect to transportation which
18occurs after the purchase of the property is made.
19(8) Charges for transporting landfill from an excavation site to
20a site specified by the purchaser, either if the charge is separately
21stated and does not exceed a reasonable charge or if the entire
22consideration consists of payment for transportation.
23(9) The amount of any motor vehicle, mobilehome, or
24commercial coach fee or tax imposed by and paid to the State of
25California that has been added to or is measured by a stated
26percentage of the sales or purchase price of a motor vehicle,
27mobilehome, or commercial coach.
28(10) (A) The amount charged for intangible personal property
29transferred with tangible personal property in any technology
30transfer agreement, if the
technology transfer agreement separately
31states a reasonable price for the tangible personal property.
32(B) If the technology transfer agreement does not separately
33state a price for the tangible personal property, and the tangible
34personal property or like tangible personal property has been
35previously sold or leased, or offered for sale or lease, to third
36parties at a separate price, the price at which the tangible personal
37property was sold, leased, or offered to third parties shall be used
38to establish the retail fair market value of the tangible personal
39property subject to tax. The remaining amount charged under the
P8 1technology transfer agreement is for the intangible personal
2property transferred.
3(C) If the technology transfer agreement does not
separately
4state a price for the tangible personal property, and the tangible
5personal property or like tangible personal property has not been
6previously sold or leased, or offered for sale or lease, to third
7parties at a separate price, the retail fair market value shall be
8equal to 200 percent of the cost of materials and labor used to
9produce the tangible personal property subject to tax. The
10remaining amount charged under the technology transfer
11agreement is for the intangible personal property transferred.
12(D) For purposes of this paragraph, “technology transfer
13agreement” means any agreement under which a person who holds
14a patent or copyright interest assigns or licenses to another person
15the right to make and sell a product or to use a process that is
16subject to the patent or copyright interest.
17(11) The amount of any tax imposed upon diesel fuel pursuant
18to Part 31 (commencing with Section 60001).
19(12) (A) The amount of tax imposed by any Indian tribe within
20the State of California with respect to a retail sale of tangible
21personal property measured by a stated percentage of the sales
22or purchase price, whether the tax is imposed upon the retailer or
23the consumer.
24(B) The exclusion authorized by subparagraph (A) shall only
25apply to those retailers who are in substantial compliance with
26this part.
27(d) This section shall become operative on January 1, 2017.
Section 6012 of the Revenue and Taxation Code is
30amended to read:
(a) “Gross receipts” mean the total amount of the sale
32or lease or rental price, as the case may be, of the retail sales of
33retailers, valued in money, whether received in money or otherwise,
34without any deduction on account of any of the following:
35(1) The cost of the property sold. However, in accordance with
36any rules and regulations as the board may prescribe, a deduction
37may be taken if the retailer has purchased property for some other
38purpose than resale, has reimbursed his or her vendor for tax which
39the vendor is required to pay to the state or has paid the use tax
40with respect to the property, and has resold the property prior to
P9 1making any
use of the property other than retention, demonstration,
2or display while holding it for sale in the regular course of business.
3If that deduction is taken by the retailer, no refund or credit will
4be allowed to his or her vendor with respect to the sale of the
5property.
6(2) The cost of the materials used, labor or service cost, interest
7paid, losses, or any other expense.
8(3) The cost of transportation of the property, except as excluded
9by other provisions of this section.
10(4) The amount of any tax imposed by the United States upon
11producers and importers of gasoline and the amount of any tax
12imposed pursuant to Part 2 (commencing with Section 7301) of
13this division.
14(b) The total amount of the sale or lease or rental price includes
15all of the following:
16(1) Any services that are a part of the sale.
17(2) All receipts, cash, credits, and property of any kind.
18(3) Any amount for which credit is allowed by the seller to the
19purchaser.
20(c) “Gross receipts” do not include any of the following:
21(1) Cash discounts allowed and taken on sales.
22(2) Sale price of property returned by customers when that entire
23amount is refunded either in cash or credit, but this exclusion shall
24not apply in any instance when
the customer, in order to obtain
25the refund, is required to purchase other property at a price greater
26than the amount charged for the property that is returned. For the
27purpose of this section, refund or credit of the entire amount shall
28be deemed to be given when the purchase price less rehandling
29and restocking costs are refunded or credited to the customer. The
30amount withheld for rehandling and restocking costs may be a
31percentage of the sales price determined by the average cost of
32rehandling and restocking returned merchandise during the
33previous accounting cycle.
34(3) The price received for labor or services used in installing or
35applying the property sold.
36(4) (A) The amount of any tax (not including, however, any
37manufacturers’ or importers’ excise
tax, except as provided in
38subparagraph (B)) imposed by the United States upon or with
39respect to retail sales whether imposed upon the retailer or the
40consumer.
P10 1(B) The amount of manufacturers’ or importers’ excise tax
2imposed pursuant to Section 4081 or 4091 of the Internal Revenue
3Code for which the purchaser certifies that he or she is entitled to
4either a direct refund or credit against his or her income tax for
5the federal excise tax paid or for which the purchaser issues a
6certificate pursuant to Section 6245.5.
7(5) The amount of any tax imposed by any city, county, city
8and county, or rapid transit district within the State of California
9upon or with respect to retail sales of tangible personal property
10measured by a stated percentage of sales price or gross receipts
11whether
imposed upon the retailer or the consumer.
12(6) The amount of any tax imposed by any city, county, city
13and county, or rapid transit district within the State of California
14with respect to the storage, use, or other consumption in that city,
15county, city and county, or rapid transit district of tangible personal
16property measured by a stated percentage of sales price or purchase
17price, whether the tax is imposed upon the retailer or the consumer.
18(7) Separately stated charges for transportation from the
19retailer’s place of business or other point from which shipment is
20made directly to the purchaser, but the exclusion shall not exceed
21a reasonable charge for transportation by facilities of the retailer
22or the cost to the retailer of transportation by other than facilities
23of the
retailer. However, if the transportation is by facilities of the
24retailer, or the property is sold for a delivered price, this exclusion
25shall be applicable solely with respect to transportation which
26occurs after the sale of the property is made to the purchaser.
27(8) Charges for transporting landfill from an excavation site to
28a site specified by the purchaser, either if the charge is separately
29stated and does not exceed a reasonable charge or if the entire
30
consideration consists of payment for transportation.
31(9) The amount of any motor vehicle, mobilehome, or
32commercial coach fee or tax imposed by and paid to the State of
33California that has been added to or is measured by a stated
34percentage of the sales or purchase price of a motor vehicle,
35mobilehome, or commercial coach.
36(10) (A) The amount charged for intangible personal property
37transferred with tangible personal property in any technology
38transfer agreement, if the technology transfer agreement separately
39states a reasonable price for the tangible personal property.
P11 1(B) If the technology transfer agreement does not separately
2state a price for the tangible personal property, and
the tangible
3personal property or like tangible personal property has been
4previously sold or leased, or offered for sale or lease, to third
5parties at a separate price, the price at which the tangible personal
6property was sold, leased, or offered to third parties shall be used
7to establish the retail fair market value of the tangible personal
8property subject to tax. The remaining amount charged under the
9technology transfer agreement is for the intangible personal
10property transferred.
11(C) If the technology transfer agreement does not separately
12state a price for the tangible personal property, and the tangible
13personal property or like tangible personal property has not been
14previously sold or leased, or offered for sale or lease, to third
15parties at a separate price, the retail fair market value shall be equal
16to 200 percent of the cost
of materials and labor used to produce
17the tangible personal property subject to tax. The remaining amount
18charged under the technology transfer agreement is for the
19intangible personal property transferred.
20(D) For purposes of this paragraph, “technology transfer
21agreement” means any agreement under which a person who holds
22a patent or copyright interest assigns or licenses to another person
23the right to make and sell a product or to use a process that is
24subject to the patent or copyright interest.
25(11) The amount of any tax imposed upon diesel fuel pursuant
26to Part 31 (commencing with Section 60001).
27(12) (A) The amount of tax imposed by any Indian tribe within
28the State of California with respect
to a retail sale of tangible
29personal property measured by a stated percentage of the sales or
30purchase price, whether the tax is imposed upon the retailer or the
31consumer.
32(B) The exclusion authorized by subparagraph (A) shall only
33apply to those retailers who are in substantial compliance with this
34part.
35(13) The value of a passenger vehicle traded in for a new
36passenger vehicle, including a new pickup truck,begin insert or a new
37motorcycle,end insert if the value of the trade-in passenger vehicle is
38separately stated on the new passenger vehiclebegin insert or new motorcycleend insert
39 invoice or bill of sale or similar
document provided to the
40purchaser.
P12 1(A) For purposes of this paragraph:
2(i) “Passenger vehicle” means passenger vehicle as defined by
3Section 34710 of the Vehicle Code.
4(ii) “Pickup truck” means a pickup truck as defined by Section
5471 of the Vehicle Code.
6(iii) “Motorcyle” means a motorcycle as defined by Section
7400 of the Vehicle Code.
8(B) Notwithstanding clause (i) of subparagraph (A), “passenger
9vehicle” shall include a passenger vehicle equipped with four-wheel
10drive.
11For
purposes of the sales tax, if the retailers establish to the
12satisfaction of the board that the sales tax has been added to the
13total amount of the sale price and has not been absorbed by them,
14the total amount of the sale price shall be deemed to be the amount
15received exclusive of the tax imposed. Section 1656.1 of the Civil
16Code shall apply in determining whether or not the retailers have
17absorbed the sales tax.
18(d) This section shall become inoperative on January 1, 2017,
19and as of that date is repealed.
begin insertSection 6012 is added to the end insertbegin insertRevenue and Taxation
21Codeend insertbegin insert, to read:end insert
(a) “Gross receipts” mean the total amount of the sale
23or lease or rental price, as the case may be, of the retail sales of
24retailers, valued in money, whether received in money or otherwise,
25without any deduction on account of any of the following:
26(1) The cost of the property sold. However, in accordance with
27any rules and regulations as the board may prescribe, a deduction
28may be taken if the retailer has purchased property for some other
29purpose than resale, has reimbursed his or her vendor for tax
30which the vendor is required to pay to the state or has paid the
31use tax with respect to the property, and has resold the property
32prior to making any use of the property other than
retention,
33demonstration, or display while holding it for sale in the regular
34course of business. If that deduction is taken by the retailer, no
35refund or credit will be allowed to his or her vendor with respect
36to the sale of the property.
37(2) The cost of the materials used, labor or service cost, interest
38paid, losses, or any other expense.
39(3) The cost of transportation of the property, except as excluded
40by other provisions of this section.
P13 1(4) The amount of any tax imposed by the United States upon
2producers and importers of gasoline and the amount of any tax
3imposed pursuant to Part 2 (commencing with Section 7301) of
4this
division.
5(b) The total amount of the sale or lease or rental price includes
6all of the following:
7(1) Any services that are a part of the sale.
8(2) All receipts, cash, credits, and property of any kind.
9(3) Any amount for which credit is allowed by the seller to the
10purchaser.
11(c) “Gross receipts” do not include any of the following:
12(1) Cash discounts allowed and taken on sales.
13(2) Sale price of property returned by customers when that
14entire amount is refunded either in cash or credit, but this exclusion
15shall not apply in any instance when the customer, in order to
16obtain the refund, is required to purchase other property at a price
17greater than the amount charged for the property that is returned.
18For the purpose of this section, refund or credit of the entire
19amount shall be deemed to be given when the purchase price less
20rehandling and restocking costs are refunded or credited to the
21customer. The amount withheld for rehandling and restocking
22costs may be a percentage of the sales price determined by the
23average cost of rehandling and restocking returned merchandise
24during the previous accounting cycle.
25(3) The price received for labor or services used in installing
26or applying the property sold.
27(4) (A) The amount of any tax (not including, however, any
28manufacturers’ or importers’ excise tax, except as provided in
29subparagraph (B)) imposed by the United States upon or with
30respect to retail sales whether imposed upon the retailer or the
31consumer.
32(B) The amount of manufacturers’ or importers’ excise tax
33imposed pursuant to Section 4081 or 4091 of the Internal Revenue
34Code for which the purchaser certifies that he or she is entitled to
35either a direct refund or credit against his or her income tax for
36the federal excise tax paid or for which the purchaser issues a
37
certificate pursuant to Section 6245.5.
38(5) The amount of any tax imposed by any city, county, city and
39county, or rapid transit district within the State of California upon
40or with respect to retail sales of tangible personal property
P14 1measured by a stated percentage of sales price or gross receipts
2whether imposed upon the retailer or the consumer.
3(6) The amount of any tax imposed by any city, county, city and
4county, or rapid transit district within the State of California with
5respect to the storage, use, or other consumption in that city,
6county, city and county, or rapid transit district of tangible
7personal property measured by a stated percentage of sales price
8or purchase price, whether the tax is imposed upon the retailer or
9the consumer.
10(7) Separately stated charges for transportation from the
11retailer’s place of business or other point from which shipment is
12made directly to the purchaser, but the exclusion shall not exceed
13a reasonable charge for transportation by facilities of the retailer
14or the cost to the retailer of transportation by other than facilities
15of the retailer. However, if the transportation is by facilities of the
16retailer, or the property is sold for a delivered price, this exclusion
17shall be applicable solely with respect to transportation which
18occurs after the sale of the property is made to the purchaser.
19(8) Charges for transporting landfill from an excavation site to
20a site specified by the purchaser, either if the charge is separately
21stated and does not exceed a reasonable charge or if the entire
22consideration consists of
payment for transportation.
23(9) The amount of any motor vehicle, mobilehome, or
24commercial coach fee or tax imposed by and paid to the State of
25California that has been added to or is measured by a stated
26percentage of the sales or purchase price of a motor vehicle,
27mobilehome, or commercial coach.
28(10) (A) The amount charged for intangible personal property
29transferred with tangible personal property in any technology
30transfer agreement, if the technology transfer agreement separately
31states a reasonable price for the tangible personal property.
32(B) If the technology transfer agreement does not separately
33
state a price for the tangible personal property, and the tangible
34personal property or like tangible personal property has been
35previously sold or leased, or offered for sale or lease, to third
36parties at a separate price, the price at which the tangible personal
37property was sold, leased, or offered to third parties shall be used
38to establish the retail fair market value of the tangible personal
39property subject to tax. The remaining amount charged under the
P15 1technology transfer agreement is for the intangible personal
2property transferred.
3(C) If the technology transfer agreement does not separately
4state a price for the tangible personal property, and the tangible
5personal property or like tangible personal property has not been
6previously sold or leased, or offered for sale or lease, to third
7parties at a separate price, the retail fair market value shall be
8equal to 200 percent
of the cost of materials and labor used to
9produce the tangible personal property subject to tax. The
10remaining amount charged under the technology transfer
11agreement is for the intangible personal property transferred.
12(D) For purposes of this paragraph, “technology transfer
13agreement” means any agreement under which a person who holds
14a patent or copyright interest assigns or licenses to another person
15the right to make and sell a product or to use a process that is
16subject to the patent or copyright interest.
17(11) The amount of any tax imposed upon diesel fuel pursuant
18to Part 31 (commencing with Section 60001).
19(12) (A) The amount of tax imposed by any Indian tribe within
20the State of California with respect to a retail sale of tangible
21personal property measured by a stated percentage of the sales
22or purchase price, whether the tax is imposed upon the retailer or
23the consumer.
24(B) The exclusion authorized by subparagraph (A) shall only
25apply to those retailers who are in substantial compliance with
26this part.
27For purposes of the sales tax, if the retailers establish to the
28satisfaction of the board that the sales tax has been added to the
29total amount of the sale price and has not been absorbed by them,
30the total amount of the sale price shall be deemed to be the amount
31received exclusive of the tax imposed. Section 1656.1 of the Civil
32Code shall apply in determining whether
or not the retailers have
33absorbed the sales tax.
34(d) This section shall become operative on January 1, 2017.
Notwithstanding Section 2230 of the Revenue and
37Taxation Code, no appropriation is made by this act and the state
38shall not reimburse any local agency for any sales and use tax
39revenues lost by it under this act.
This act provides for a tax levy within the meaning
3of Article IV of the Constitution and shall go into immediate effect.
4However, the provisions of this act shall become operative on the
5first day of the first calendar quarter commencing more than 90
6days after the effective date of this act.
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