BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 724|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: AB 724
Author: Dodd (D) and Frazier (D), et al.
Amended: 4/14/16 in Senate
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 6/15/16
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach,
Pavley
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 76-0, 5/7/15 - See last page for vote
SUBJECT: Sales and use taxes: exemption: museum displays:
Jimmy Doolittle Air and Space Museum Education
Foundation
SOURCE: Author
DIGEST: This bill provides a sales and use tax exemption for
the purchase of museum display items and sprung instant
structures purchased by the Jimmy Doolittle Air and Space Museum
Education Foundation.
ANALYSIS:
Existing law:
1)Imposes a sales and use tax (SUT) on the sale, storage, or use
of tangible personal property unless exempted by state law.
2)State law provides several sales and use tax exemptions
related to museums, as follows:
AB 724
Page 2
a) Original works of art when they are, among other things,
purchased by a California state or local entity, or by
certain nonprofit organizations under contract with
governmental entities, by certain nonprofit organizations
for public exhibit, or by persons for donation directly to
any governmental or nonprofit organization.
b) Museum pieces purchased to replace destroyed property
used exclusively for display purposes when purchased within
three years from the date the property was destroyed by (1)
the state or a local government entity as part of a public
art collection, (2) a nonprofit museum regularly open to
the public and operated by a local or state government
entity, or (3) operated by certain nonprofit organizations.
c) Purchases of museum display items and sprung instant
structures (structures that serve as temporary buildings to
house exhibits) purchased by the San Diego Air and Space
Museum's and the California Science Center's.
This bill:
1)Provides a SUT exemption for the purchase of museum display
items and sprung instant structures purchased by the Jimmy
Doolittle Air and Space Museum Education Foundation.
2)Makes legislative findings and declarations as to the
necessity of a special statute for the Jimmy Doolittle Air and
Space Museum Education Foundation.
Background
In 1986, the sales and use tax exemption for the San Diego Air
and Space Museum's purchase of museum display items was enacted.
In 1988, the exemption was extended to the California Science
Center. In 1992, the Legislature again expanded the exemption
to include sprung instant structures purchased by these entities
for use as temporary exhibit housing. Other measures have been
considered in the past to further expand this exemption to
include purchases by the Museum of Flying, the March Field
Museum Foundation, and the Air Force Flight Test Center Museum,
but all of them ultimately failed.
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FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified6/28/16)
City of Vacaville
Fiona Ma, Board of Equalization Member
George Runner, Board of Equalization Member
Jimmy Doolittle Air and Space Museum Education Foundation
Solano County - Nut Tree Airport
OPPOSITION: (Verified6/28/16)
None received
ARGUMENTS IN SUPPORT: According to the author, "AB 724 would
provide the Jimmy Doolittle Air and Space Museum Education
Foundation the rare opportunity to purchase the fully restored
"Shell Lockheed Vega" piloted by General Doolittle himself.
This largely volunteer supported nonprofit museum received a
generous private donation covering 50% of the cost of purchasing
the Vega. Because of limited funding sources, an exemption from
paying sales and use tax on this purchase would allow the museum
to more easily fundraise the remaining cost of this historic
aircraft. Such an exemption is not precedent setting; two
similar exemptions have been approved for museums seeking
educational displays for public benefit."
ASSEMBLY FLOOR: 76-0, 5/7/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bonilla,
Bonta, Brough, Brown, Burke, Calderon, Chang, Chau, Chávez,
Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd,
Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia,
Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray,
Grove, Hadley, Harper, Holden, Irwin, Jones, Jones-Sawyer,
AB 724
Page 4
Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,
Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,
O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon,
Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone,
Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood,
Atkins
NO VOTE RECORDED: Bloom, Campos, Roger Hernández, Steinorth
Prepared by:Myriam Bouaziz / GOV. & F. / (916) 651-4119
6/29/16 15:45:50
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