BILL ANALYSIS Ó AB 737 Page 1 Date of Hearing: April 27, 2015 ASSEMBLY COMMITTEE ON REVENUE AND TAXATION Philip Ting, Chair AB 737 (Roger Hernández) - As Amended March 26, 2015 Majority vote. Fiscal committee. SUBJECT: Sales and use taxes: seller's permit: determinations SUMMARY: Extends the time necessary for the Board of Equalization (BOE) to issue a determination regarding the issuance of a seller's permit from 30 days to 35 days, as specified. EXISTING LAW: 1)Provides that, a city, county, or city and county may collect information from persons who desire to engage in a business AB 737 Page 2 for the purpose of selling tangible personal property (TPP) within their jurisdiction. 2)Provides that, the city, county, or city and county will transmit the information collected from the person to the BOE, as specified. 3)Requires the BOE to issue a determination regarding the issuance of a seller's permit and receipt of notification. The BOE must provide a copy of the determination to the city, county, or city and county from which the BOE has received information. 4)Requires the BOE to make the determination as follows: a) The determination shall be issued within 30 days of receipt of the information if the determination can be based on the information submitted; or, b) The determination shall be issue within 120 of receipt of the information if additional information is required before determination can be made. 5)Allows a city, county, or city and county to charge applicants a fee for collecting and transmitting information FISCAL EFFECT: Unknown COMMENTS: Under existing law, when a person applies to the city or county for a sellers permit, information is collected and transmitted to the BOE for processing. The information is AB 737 Page 3 treated as a preliminary application for the seller's permit. If a determination can be made by the BOE based on the preliminary application, the BOE is required to issue a determination regarding the issuance of the seller's permit within 30 days. This bill provides the BOE with an additional five days to make that determination. REGISTERED SUPPORT / OPPOSITION: Support None on file Opposition None on file Analysis Prepared by:Carlos Anguiano / REV. & TAX. / (916) 319-2098 AB 737 Page 4