Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 737

Introduced by Assembly Member Roger Hernández

February 25, 2015

An act to amend Section begin delete 202 end delete begin insert 6066.3 end insert of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 737, as amended, Roger Hernández. begin delete Property taxation: exempt property. end delete begin insert Sales and use taxes: seller’s permit: determinations. end insert

begin insert

Existing law requires every person who seeks to conduct business as a seller of tangible personal property within the state to file an application for a permit with the State Board of Equalization for each place of business, as provided. Existing law authorizes a city, county, or city and county to collect information from persons seeking to engage in the business of selling tangible personal property in that jurisdiction and requires that collected information to be transmitted to the board, as provided, to be used as the preliminary application for a seller’s permit. Existing law requires the board to issue a determination regarding the issuance of a seller’s permit, if a determination can be made based on the information submitted, within 30 days of receipt of the information.

end insert begin insert

This bill would increase the amount of time the board has to make that determination from 30 days to 35 days within receipt of the information.

end insert begin delete

Existing property tax law exempts from property taxation, property used for free public libraries and free museums.

end delete begin delete

This bill would make nonsubstantive changes to that provision.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 6066.3 of the end insert begin insert Revenue and Taxation Code end insert
begin insert is amended to read: end insert

6066.3.  

(a) A city, county, or city and county may collect
information from persons desiring to engage in business in that
jurisdiction for the purposes of selling tangible personal property
under this part and shall transmit that information to the board.
The information shall be provided to the board in a format to be
determined by the board after consulting with the League of
California Cities and the California State Association of Counties.

(b) The information submitted to the board under subdivision
(a) shall serve as all of the following:

(1) The preliminary application for a seller’s permit.

(2) Notification to the board by the city, county, or city and
county of a person desiring to engage in the business of selling of
tangible personal property in that jurisdiction.

(3) Notice to the board for purposes of redistribution under
Section 7209.

(c) The board shall issue a determination regarding issuance of
a seller’s permit and receipt of notification for purposes of
paragraphs (2) and (3) of subdivision (b). The board shall provide
a copy of that determination and receipt of notification to the city,
county, or city and county from which the board has received
information under subdivision (a). The board shall make its
determination as follows:

(1) For persons for whom a determination can be made based
on the information submitted, the determination shall be issued
within begin delete 30 end delete begin insert 35 end insert days of receipt of the information.

(2) For persons for whom additional information is required
before a determination can be made, the determination shall be
issued within 120 days of receipt of the information.

(d) The board shall, after consulting with the League of
California Cities and the California State Association of Counties,
adopt standardized data addressing and naming conventions that
are compatible with local jurisdiction conventions for new
registrants and, to the extent possible, for current accounts.

(e) A city, county, or city and county may not charge applicants
a fee for collecting and transmitting information pursuant to this
section.

begin delete

SECTION 1.  

Section 202 of the Revenue and Taxation Code
is amended to read:

202.  

(a) The exemption of the following property is as
specified in subdivisions (a), (b), (d), and (h) of Section 3 of Article
XIII of the Constitution, except as otherwise provided in
subdivision (a) of Section 11 thereof:

(1) Growing crops.

(2) Property used for public libraries and museums that are free.

(3) Property used exclusively for public schools, community
colleges, state colleges, and state universities, including the
University of California.

(4) Property belonging to this state, a county, or a city. Property
belonging to the State Compensation Insurance Fund is not
property belonging to this state.

(b) The exemption described in paragraph (3) of subdivision
(a) shall apply to off-campus facilities owned or leased by an
apprenticeship program sponsor, if such facilities are used
exclusively by the public schools for classes of related and
supplemental instruction for apprentices or trainees which are
conducted by the public schools under Chapter 4 (commencing
with Section 3070) of Division 3 of the Labor Code.

(c) Without prejudice to the right to assert an exemption
otherwise available under subdivision (a), (d), or (e) of Section 3
of Article XIII of the Constitution, a property tax under this
division shall be imposed upon that portion of the bookstore
property determined to be generating the unrelated business taxable
income, as defined in Section 512 of the Internal Revenue Code,
to the extent property is:

(1) Owned by an educational institution of collegiate grade or
used by a nonprofit corporation operating a student bookstore
affiliated with such an educational institution, and

(2) Is primarily devoted to bookstore use that produces income
that is taxable as unrelated business taxable income.

This tax shall be determined by establishing a ratio of the
unrelated business taxable income to the bookstore’s gross income
as defined by the Internal Revenue Code. That percent shall be the
maximum percentage of such bookstore property on which a
property tax can be levied.

At the end of a fiscal year when unrelated business income has
been generated, the nonprofit organization shall file with the
assessor copies of the organization’s most recent tax return filed
with the Internal Revenue Service.

end delete