BILL NUMBER: ABX2 10 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 3, 2016
INTRODUCED BY Assembly Member Bloom
( Principal coauthor: Senator
McGuire )
JULY 16, 2015
An act to amend Section amend, repeal, and
add Sections 30111 and 30462 of, and to add Section
7284.8 to, the Revenue and Taxation Code, relating to local
government.
LEGISLATIVE COUNSEL'S DIGEST
AB 10, as amended, Bloom. Local taxes: authorization: cigarettes
and tobacco products.
The Cigarette and Tobacco Products Tax Law imposes a tax on every
distributor of cigarettes and tobacco products at specified rates.
That law specifies that the taxes imposed by that law are in lieu of
all other state, county, municipal, or district taxes on the
privilege of distributing cigarettes or tobacco products. The
California Constitution prohibits the Legislature from imposing taxes
for local purposes, but allows the Legislature to authorize local
governments to impose them.
This bill would authorize authorize, on
and after January 1, 2017, the board of supervisors of a county
or city and county to impose a tax on the privilege of distributing
cigarettes and tobacco products in the county or city and county,
including within an incorporated city within the county.
county, and would make conforming changes. This bill
would define "distributing" to mean making a sale of cigarettes or
tobacco products in a county or city and county that has not been
taxed by a cigaret te or tobacco products tax ordinance of
that county or city and county.
This bill would authorize the board of supervisors of a county or
city and county to enter into an agreement with another county or
city and county to share any startup and ongoing administrative costs
of a tax imposed pursuant to that authorization. This bill also
would authorize the board of supervisors of a county or city and
county to contract with the State Board of Equalization to perform
functions incident to the administration or operation of the
cigarette and tobacco products tax ordinance of the county, with
reimbursement for costs incurred, and would require the State Board
of Equalization to perform those functions pursuant to that contract.
This bill also would require the State Board of Equalization to
permit the examination of its records with respect to the tax imposed
pursuant to the Cigarette and Tobacco Products Tax Law upon request
by a county or city and county officer or employee to the extent
necessary for the proper administration of that local cigarette and
tobacco products tax, and authorizes the State Board of Equalization
to require reimbursement. The bill would make knowingly accessing,
using, or disclosing that confidential information without
authorization a crime, thereby imposing a state-mandated local
program.
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.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7284.8 is added to the Revenue and Taxation
Code, to read:
7284.8. (a) Subject to the limitations of the California
Constitution, a board of supervisors of a county or city and county
may, in accordance with Article 3.7 (commencing with Section 53720)
of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government
Code, impose a tax on the privilege of distributing cigarettes and
tobacco products in the county or city and county. The board of
supervisors may impose this tax within an incorporated city within
the county.
(b) For purposes of this section:
(1) "Cigarette" means a cigarette, as defined in Section 30003.
(2) "Tobacco products" means tobacco products, as defined in
subdivision (b) of Section 30121.
(3) "Distributing" means making a sale of cigarettes or tobacco
products in a county or city and county that has not been taxed by a
cigarette or tobacco products tax ordinance of that county or city
and county.
(4) "Sale" includes any transfer of title or possession for a
consideration, exchange, or barter, in any manner or by any means
whatever.
(c) The board of supervisors of a county or city and county may
enter into an agreement with another county or city and county to
share any startup and ongoing administrative costs of a tax imposed
pursuant to the authorization of this section.
(d) The board of supervisors of a county or city and county may
contract with the State Board of Equalization to perform functions
incident to the administration or operation of the cigarette and
tobacco products tax ordinance of the county or city and county, and
the State Board of Equalization shall perform those functions
pursuant to that contract. The county or city and county shall
reimburse the State Board of Equalization for any costs incurred by
the board in performing those functions.
(e) (1) The State Board of Equalization shall permit the
examination of any records of the board with respect to the tax
imposed pursuant to the Cigarette and Tobacco Products Tax Law (Part
13 (commencing with Section 30001)) upon request by a county or city
and county officer or employee to the extent necessary for the proper
administration of a tax imposed pursuant to the authorization of
this section.
(2) The State Board of Equalization may require reimbursement for
costs incurred in complying with a request made pursuant to paragraph
(1).
(3) Any person who knowingly accesses, uses, or discloses any
confidential information provided by the State Board of Equalization
pursuant this subdivision without authorization is guilty of a
misdemeanor.
(f) This section shall become operative on January 1, 2017.
SEC. 2. Section 30111 of the Revenue and
Taxation Code is amended to read:
30111. The taxes imposed by this part are in lieu of all other
state, municipal, or district taxes on the privilege of distributing
cigarettes or tobacco products.
This section does not prohibit the application of Part 1
(commencing with Section 6001), Part 1.5 (commencing with Section
7200), Part 1.6 (commencing with Section 7251), or Article 2
(commencing with Section 37021) of Part 17 to the sale, storage, use
or other consumption of cigarettes or tobacco products.
SEC. 2. Section 30111 of the Revenue
and Taxation Code is amended to read:
30111. (a) The taxes imposed by this part
are in lieu of all other state, county, municipal, or district taxes
on the privilege of distributing cigarettes or tobacco products.
This section does not prohibit the application of Part 1
(commencing with Section 6001), Part 1.5 (commencing with Section
7200), 7200) or Part 1.6 (commencing
with Section 7251), or Article 2 (commencing with Section
37021) of Part 17 7251) to the sale, storage,
use use, or other consumption of
cigarettes or tobacco products.
(b) This section shall become inoperative and shall be repealed on
January 1, 2017.
SEC. 3. Section 30111 is added to the
Revenue and Taxation Code , to read:
30111. (a) The taxes imposed by this part are in lieu of all
other state, city, or district taxes on the privilege of distributing
cigarettes or tobacco products. This section does not prohibit the
application of Part 1 (commencing with Section 6001), Part 1.5
(commencing with Section 7200), or Part 1.6 (commencing with Section
7251) to the sale, storage, use, or other consumption of cigarettes
or tobacco products.
(b) This section shall become operative on January 1, 2017.
SEC. 4. Section 30462 of the Revenue
and Taxation Code is amended to read:
30462. (a) All money deposited in the Cigarette Tax Fund under
this part is hereby appropriated, subject to the provisions of any
budget bill heretofore or hereafter enacted, and shall, upon order of
the Controller, be drawn therefrom and allocated for the following
purposes:
(1) To pay the refunds authorized by this part.
(2) The balance remaining in the fund shall be transferred to the
General Fund of this state on or before the last calendar day of each
month.
(b) It is the intent of the Legislature that Section 30111
continues to prohibit the imposition of local taxes by any city,
charter city, town, county, charter county, city and county, charter
cities and counties, or other political subdivision or agency of this
state, on the sale, use, ownership, holding, or other distribution
of cigarettes and tobacco products except as provided by Section
30111. The Legislature finds and declares that the need for uniform
statewide regulation and collection of cigarette taxes is a matter of
statewide concern, and it is the Legislature's intent to regulate
the subject matter of cigarette taxes comprehensively and to occupy
the field to the exclusion of local action except as specifically
provided by Section 30111.
(c) This section shall become inoperative and shall be repealed on
January 1, 2017.
SEC. 5. Section 30462 is added to the
Revenue and Taxation Code , to read:
30462. (a) All money deposited in the Cigarette Tax Fund under
this part is hereby appropriated, subject to the provisions of any
budget bill heretofore or hereafter enacted, and shall, upon order of
the Controller, be drawn therefrom and allocated for the following
purposes:
(1) To pay the refunds authorized by this part.
(2) The balance remaining in the fund shall be transferred to the
General Fund of this state on or before the last calendar day of each
month.
(b) It is the intent of the Legislature that Section 30111
continues to prohibit the imposition of local taxes by any city,
charter city, town, or political subdivision or agency of this state
other than a county, charter county, city and county, and charter
city and county, on the sale, use, ownership, holding, or other
distribution of cigarettes and tobacco products except as provided by
Section 30111. The Legislature finds and declares that the need for
uniform statewide regulation and collection of cigarette taxes is a
matter of statewide concern and it is the Legislature's intent to
regulate the subject matter of cigarette taxes comprehensively and to
occupy the field to the exclusion of local action except as
specifically provided by Section 30111.
(c) This section shall become operative on January 1, 2017.
SEC. 6. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.