BILL ANALYSIS Ó
AB 724
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
724 (Dodd and Frazier)
As Amended April 14, 2016
Majority vote
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|ASSEMBLY: | |(May 7, 2015) |SENATE: |39-0 |(August 1, 2016) |
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(vote not relevant)
Original Committee Reference: HEALTH
SUMMARY: Establishes a sales and use tax (SUT) exemption for
tangible personal property (TPP) purchased by the Jimmy
Doolittle Air and Space Museum Education Foundation for display
purposes.
The Senate amendments delete the Assembly version of this bill
and instead:
1)Expand the existing SUT exemption for TPP purchased by
specified nonprofit museums for display purposes to include
the Jimmy Doolittle Air and Space Museum Education Foundation.
AB 724
Page 2
2)Provide that, notwithstanding existing law, the state shall
not reimburse any city or county for any SUT revenues lost as
a result of this bill.
3)Contain findings and declarations that a special law is
necessary and that a general law cannot be made applicable
within the meaning of the California Constitution Article IV,
Section 16 because of the unique fiscal pressures experienced
by the Jimmy Doolittle Air and Space Museum Education
Foundation in promoting this country's aviation history and
encouraging patriotic endeavors by providing impactful
experiences through interactive aviation exhibits.
4)Provide that this bill shall take immediate effect as a tax
levy.
EXISTING LAW:
1)Imposes a sales tax on retailers for the privilege of selling
TPP, absent a specific exemption. The tax is based upon the
retailer's gross receipts from TPP sales in this state.
2)Imposes a complimentary use tax on the storage, use, or other
consumption of TPP purchased out-of-state and brought into
California. The use tax is imposed on the purchaser; and
unless the purchaser pays the use tax to an out-of-state
retailer registered to collect California's use tax, the
purchaser remains liable for the tax. The use tax is set at
the same rate as the state's sales tax and must generally be
remitted to the State Board of Equalization.
3)Provides a SUT exemption for TPP purchased by the San Diego
Air & Space Museum and the California Science Center if the
property is purchased and used exclusively for display
purposes within the museum, as provided.
AB 724
Page 3
AS PASSED BY THE ASSEMBLY, this bill added district fairs as a
type of "community event" in the California Retail Food Code.
FISCAL EFFECT: According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS: This bill was substantially amended in the Senate and
the Assembly-approved provisions of the bill were deleted. This
bill, as amended in the Senate is inconsistent with Assembly
actions.
Analysis Prepared by:
M. David Ruff / REV. & TAX. / (916) 319-2098
FN: 0003629