AB 755,
as amended, Ridley-Thomas. begin deletePersonal income taxes: deduction: student loan interest. end deletebegin insertSales and use taxes: exemption: small businesses: Los Angeles County transit projects.end insert
Existing sales and use tax laws impose taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, and provides various exemptions from the taxes imposed by those laws.
end insertbegin insertThis bill would partially exempt from those taxes the gross receipts from the sale of, and the storage, use, or other consumption of, tangible personal property sold by, or purchased from, a retailer that is a small business, as defined, and whose property line abuts or faces the rail corridor or a designated construction staging or construction storage area of the Crenshaw/LAX Transit Corridor Light Rail Line, the Regional Connector Transit Corridor Light Rail Line, or the Westside Subway Extension Light Rail Line, as specified. The bill would also make findings and declarations in this regard.
end insertbegin insertThe Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing law authorizes districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which conforms generally to the Sales and Use Tax Law. Exemptions from state sales and use taxes are incorporated into these laws.
end insertbegin insertThis bill would specify that this exemption does not apply to local sales and use taxes and transactions and use taxes.
end insertThe Personal Income Tax Law, in conformity with federal income tax laws, allows a deduction from gross income for the taxable year in an amount equal to the interest paid by the taxpayer, not to exceed $2,500, during the taxable year on a qualified education loan. That law provides for a phase out at certain modified adjusted gross income levels.
end deleteThis bill, for taxable years beginning on or after January 1, 2016, would increase the dollar amount limit to $4,000, thereby no longer conforming to that limitation of the federal income tax law.
end deleteThis bill would take effect immediately as a tax levy.begin insert end insertbegin insertHowever, the provisions of this act shall become operative on January 1, 2016.end insert
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares all of the
2following:
3(a) The Los Angeles County Metropolitan Transportation
4Authority is currently engaged in the largest public transit
5expansion in the country.
6(b) This expansion will fundamentally transform the County of
7Los Angeles and will have significant long-term economic benefits.
8(c) The Los Angeles County Metropolitan Transportation
9Authority is currently constructing
three future rail transit lines
10known as the Crenshaw/LAX Transit Corridor Light Rail Line,
11the Regional Connector, and the Westside Subway Extension.
12(d) The Los Angeles County Metropolitan Transportation
13Authority has adopted a Locally Preferred Alternative for these
14projects, which describe the route alignment of the projects,
15including station locations.
16(e) While these projects will create long-term economic benefits
17for the local communities and the County of Los Angeles as a
P3 1whole, there will be temporary impacts to the local communities
2from the construction of these projects.
3(f) It is incumbent upon the state to partner with the Los Angeles
4County Metropolitan Transportation Authority and assist it in
5mitigating these short term impacts by providing tax relief to small
6businesses affected by the
construction of these light rail lines.
begin insertSection 6362 is added to the end insertbegin insertRevenue and Taxation
8Codeend insertbegin insert, to read:end insert
(a) During the period in which each project is under
10construction, there are exempted from the taxes imposed by this
11part, the gross receipts from the sale of, and the storage, use, or
12other consumption in this state of, tangible personal property sold
13by, or purchased from, a retailer that is a small business and whose
14property line abuts or faces the rail corridor or a designated
15construction staging or construction storage area, including a
16small business located in a mall or strip-mall that is similarly
17situated, of the Crenshaw/LAX Transit Corridor Light Rail Line,
18the Regional Connector Transit Corridor Light Rail Line, or the
19Westside Subway Extension Light Rail Line selected as the Locally
20Preferred Alternative, as described in the Final Environmental
21Impact Statement/Environmental Impact Report for
each project,
22and as approved by the Los Angeles County Metropolitan
23Transportation Authority.
24(b) For the purposes of this section, the following shall apply:
25(1) “Project” means the Crenshaw/LAX Transit Corridor Light
26Rail Line, the Regional Connector Transit Corridor Light Rail
27Line, and the Westside Subway Extension Light Rail Line as
28described in this section.
29(2) “Small business” shall mean a retailer that remitted to the
30board less than two hundred thousand dollars ($200,000) in tax
31for the previous four calendar quarters.
32(3) “Small business” also means a retailer that has been in
33operation for less than four calendar quarters and remitted less
34than an average of fifty thousand dollars ($50,000) in tax for each
35calendar quarter of operation.
36(c) (1) Notwithstanding any provision of the Bradley-Burns
37Uniform Local Sales and Use Tax Law (Part 1.5 (commencing
38with Section 7200)) or the Transactions and Use Tax Law (Part
391.6 (commencing with Section 7251)), the exemption established
40by this section does not apply with respect to any tax levied by a
P4 1county, city, or district pursuant to, or in accordance with, either
2of those laws.
3(2) Notwithstanding subdivision (a), the exemption established
4by this section shall not apply with respect to any tax levied
5pursuant to Section 6051.2, 6051.5, 6201.2, or 6201.5, pursuant
6to Section 35 and Subdivision (f) of Section 36 of Article XIII of
7the California Constitution, or any tax levied pursuant to Section
86051 or 6201 that is deposited in the State Treasury to the credit
9of the Local Revenue Fund 2011 pursuant to Section 6051.15 or
10
6201.15.
This act provides for a tax levy within the meaning of
12Article IV of the Constitution and shall go into immediate effect.
13However, the provisions of this act shall become operative on
14January 1, 2016.
Section 17204.6 is added to the Revenue and
16Taxation Code, to read:
For taxable years beginning on or after January 1,
182016, Section 221(b)(1) of the Internal Revenue Code is modified
19by substituting the number “$4,000” for the number “$2,500”
20therein.
This act provides for a tax levy within the meaning of
22Article IV of the Constitution and shall go into immediate effect.
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