AB 1895, as introduced, Brough. Transactions and use taxes.
Under existing law, cities and counties, upon compliance with applicable voting requirements, may levy, increase, or extend a transactions (sales) and use tax that conforms to the procedures and requirements of the Transactions and Use Tax Law. A district, if authorized by law, similarly may impose that tax.
This bill would make a nonsubstantive change to a provision of the Transactions and Use Tax law.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 7261 of the Revenue and Taxation Code
2 is amended to read:
The transactions tax portion of any transactions and use
4taxes ordinance adopted under this part shall be imposed for the
5privilege of selling tangible personal property at retail, and shall
6include provisions in substance as follows:
7(a) A provision imposing a tax for the privilege of selling
8tangible personal property at retail upon every retailer in the district
P2 1at a rate of one-eighth of 1 percent, or a multiple thereof, of the
2gross receipts of the retailer from the sale of all tangible personal
3property sold by that person at retail in the district.
4(b) Provisions identical to those contained in Part 1
5(commencing with Section 6001), insofar as they relate to sales
6taxes and are not inconsistent with this part, except
that the name
7of the district as the taxing agency shall be substituted for that of
8the state and that an additional transactor’s permit shall not be
9required if a seller’s permit has been or is issued to the transactor
10under Section 6067.
11(c) A provision that all amendmentsbegin delete subsequent toend deletebegin insert afterend insert the
12effective date of this part to Part 1 (commencing with Section
136001) relating to sales tax and not inconsistent with this part shall
14automatically become a part of the transactions and use taxes
15ordinance. However, no amendment shall operate so as to affect
16the rate of tax imposed by the district’s board.
17(d) A provision that the amount subject to tax shall not include
18the amount of sales tax or
use tax imposed by the State of
19California or by any city, city and county, or county pursuant to
20the Bradley-Burns Uniform Local Sales and Use Tax Law, or the
21amount of any state-administered transactions or use tax.
22(e) A provision that there are exempted from the tax the gross
23receipts from the sale of tangible personal property, other than fuel
24or petroleum products, to operators of aircraft to be used or
25consumed principally outside the county in which the sale is made
26and directly and exclusively in the use of the aircraft as common
27carriers of persons or property under the authority of the laws of
28this state, the United States, or any foreign government.
29(f) A provision that sales of property to be used outside the
30district which are shipped to a point outside the district, pursuant
31to the contract of sale, by delivery to that point by the retailer or
32his or her agent, or
by delivery by the retailer to a carrier for
33shipment to a consignee at such point, are exempt from the tax.
34For purposes of this section, “delivery” of vehicles subject to
35registration pursuant to Chapter 1 (commencing with Section 4000)
36of Division 3 of the Vehicle Code, aircraft licensed in compliance
37with Section 21411 of the Public Utilities Code, and undocumented
38vessels registered under Division 3.5 (commencing with Section
399840) of the Vehicle Code shall be satisfied by registration to an
40out-of-district address and by a declaration under penalty of
P3 1perjury, signed by the buyer, stating that the address is, in fact, his
2or her principal place of residence.
3“Delivery” of commercial vehicles shall be satisfied by
4registration to a place of business out of district and a declaration
5under penalty of perjury, signed by the buyer, that the vehicle will
6be operated from that address.
7(g) A provision that the sale of tangible personal property is
8exempt from tax if the seller is obligated to furnish the property
9for a fixed price pursuant to a contract entered into prior to the
10operative date of the ordinance. A lease of tangible personal
11property which is a continuing sale of that property is exempt from
12tax for any period of time for which the lessor is obligated to lease
13the property for an amount fixed by the lease prior to the operative
14date of the ordinance. For the purposes of this subdivision, the sale
15or lease of tangible personal property shall be deemed not to be
16obligated pursuant to a contract or lease for any period of time for
17which any party to the contract or lease has the unconditional right
18to terminate the contract or lease upon notice, whether or not that
19right is exercised.
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