AB 755, as amended, Ridley-Thomas. Sales and use taxes: exemption: small businesses: Los Angeles County transit projects.
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.
This 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
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The 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.
This bill would specify that this exemption does not apply to local sales and use taxes and transactions and use taxes.
This bill would take effect immediately as a tax levy. However, the provisions of this act shall become operative on January 1, 2016.
Fiscal committee: yes.
State-mandated local program:
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The people of the State of California do enact as follows:
The Legislature finds and declares all of the
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.
P3 1(c) The Los Angeles County Metropolitan Transportation
2Authority is currently constructing three future rail transit lines
3known as the Crenshaw/LAX Transit Corridor Light Rail Line,
4the Regional Connector, and the Westside Subway Extension.
5(d) The Los Angeles County Metropolitan Transportation
6Authority has adopted a Locally Preferred Alternative for these
7projects, which describe the route alignment of the projects,
8including station locations.
9(e) While these projects will create long-term economic benefits
10for the local communities and the County of Los Angeles as a
11whole, there will be temporary impacts to the local communities
12from the construction of these projects.
13(f) It is incumbent upon the state to partner with the Los Angeles
14County Metropolitan Transportation Authority and assist it in
15mitigating these short term impacts by providing tax relief to small
16businesses affected by the construction of these light rail lines.
Section 6362 is added to the Revenue and Taxation
18Code, to read:
(a) During the period in which each project is under
20construction, there are exempted from the taxes imposed by this
21part, the gross receipts from the sale of, and the storage, use, or
22other consumption in this state of, tangible personal property sold
23by, or purchased from, a retailer that is a small business and whose
24property line abuts or faces the rail corridor or a designated
25construction staging or construction storage area, including a small
26business located in a mall or strip-mall that is similarly situated,
27of the Crenshaw/LAX Transit Corridor Light Rail Line, the
28Regional Connector Transit Corridor Light Rail Line, or the
29Westside Subway Extension Light Rail Line selected as the Locally
30Preferred Alternative, as described in the Final Environmental
31Impact Statement/Environmental Impact Report for each project,
32and as approved by the Los Angeles County Metropolitan
38(b) For the purposes of this section, the following shall apply:
39(1) “Project” means the Crenshaw/LAX Transit Corridor Light
40Rail Line, the Regional Connector Transit Corridor Light Rail
P4 1Line, and the Westside Subway Extension Light Rail Line as
2described in this section.
3(2) “Small business” shall mean a retailer that remitted to the
4board less than two hundred thousand dollars ($200,000) in tax
5for the previous four calendar quarters.
6(3) “Small business” also means a retailer that has been in
7operation for less than four calendar quarters and remitted less
8than an average of fifty thousand dollars ($50,000) in tax for each
9calendar quarter of operation.
23 (1) Notwithstanding any provision of the Bradley-Burns
24Uniform Local Sales and Use Tax Law (Part 1.5 (commencing
25with Section 7200)) or the Transactions and Use Tax Law (Part
261.6 (commencing with Section 7251)), the exemption established
27by this section does not apply with respect to any tax levied by a
28county, city, or district pursuant to, or in accordance with, either
29of those laws.
30(2) Notwithstanding subdivision (a), the exemption established
31by this section shall not apply with respect to any tax levied
32pursuant to Section 6051.2, 6051.5, 6201.2, or 6201.5, pursuant
33to Section 35 and
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34Article XIII of the California Constitution, or any tax levied
35pursuant to Section 6051 or 6201 that is deposited in the State
36Treasury to the credit of the Local Revenue Fund 2011 pursuant
37to Section 6051.15 or 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.