California Legislature—2015–16 Regular Session

Assembly Bill No. 1896

Introduced by Assembly Member Brough

February 11, 2016

An act to amend Section 7202 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 1896, as introduced, Brough. Uniform local sales and use taxes.

Existing law, the Bradley-Burns Uniform Local Sales and Use Tax Law, authorizes a city, county, or city and county to impose local sales and use taxes, as specified. That law requires the sales tax portion of any sales and use tax ordinance adopted under that law to be imposed for the privilege of selling tangible personal property at retail and to include specified provisions.

This bill would make nonsubstantive changes to those provisions.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

SECTION 1.  

Section 7202 of the Revenue and Taxation Code
is amended to read:

7202.  

The sales tax portion of any sales and use tax ordinance
adopted under this part shall be imposed for the privilege of selling
tangible personal property at retail, and shall include begin insert the following end insert
provisions begin insert , end insert in begin delete substance as follows: end delete begin insert substance: end insert

(a) A provision imposing a tax for the privilege of selling
tangible personal property at retail upon every retailer in the county
at the rate of 11⁄4 percent of the gross receipts of the retailer from
the sale of all tangible personal property sold by that person at
retail in the county.

(b) Provisions identical to those contained in Part 1
(commencing with Section 6001), insofar as they relate to sales
taxes, except that the name of the county as the taxing agency shall
be substituted for that of the state and that an additional seller’s
permit shall not be required if one has been or is issued to the seller
under Section 6067.

(c) A provision that all amendments begin delete subsequent to end delete begin insert after end insert the
effective date of the enactment of Part 1 (commencing with Section
6001) relating to sales tax and not inconsistent with this part, shall
automatically become a part of the sales tax ordinance of the
county.

(d) A provision that the county shall contract begin delete prior to end delete begin insert before end insert the
effective date of the county sales and use tax ordinances with the
State Board of Equalization to perform all functions incident to
the administration or operation of the sales and use tax ordinance
of the county. Any such contract shall contain a provision that the
county agrees to comply with the provisions of Article 11
(commencing with Section 29530) of Chapter 2 of Division 3 of
Title 3 of the Government Code.

(e) A provision that the ordinance may be made inoperative not
less than 60 days, but not earlier than the first day of the calendar
quarter, following the county’s lack of compliance with Article
11 (commencing with Section 29530) of Chapter 2 of Division 3
of Title 3 of the Government Code or following an increase by
any city within the county of the rate of its sales or use tax above
the rate in effect at the time the county ordinance was enacted.

(f) A provision that the amount subject to tax shall not include
the amount of any sales tax or use tax imposed by the begin delete State of
California end delete begin insert state end insert upon a retailer or consumer.

(g) A provision that there is exempted from the sales tax 80
percent, and on and after July 1, 2004, until the rate modifications
in subdivision (a) of Section 7203.1 cease to apply, 75 percent, of
the gross receipts from the sale of tangible personal property, other
than fuel or petroleum products, to operators of aircraft to be used
or consumed principally outside the county in which the sale is
made and directly and exclusively in the use of the aircraft as
common carriers of persons or property under the authority of the
laws of this state, the United States, or any foreign government.

(h) A provision that any person subject to a sales and use tax
under the county ordinance shall be entitled to credit against the
payment of taxes due under that ordinance the amount of sales and
use tax due to any city in the county; provided that the city sales
and use tax is levied under an ordinance including provisions in
substance as follows:

(1) A provision imposing a tax for the privilege of selling
tangible personal property at retail upon every retailer in the city
at the rate of 1 percent or less of the gross receipts of the retailer
from the sale of all tangible personal property sold by that person
at retail in the city and a use tax of 1 percent or less of purchase
price upon the storage, use or other consumption of tangible
personal property purchased from a retailer for storage, use or
consumption in the city.

(2) Provisions identical to those contained in Part 1
(commencing with Section 6001), insofar as they relate to sales
and use taxes, except that the name of the city as the taxing agency
shall be substituted for that of the state (but the name of the city
shall not be substituted for the word “state” in the phrase “retailer
engaged in business in this state” in Section 6203 nor in the
definition of that phrase in Section 6203) and that an additional
seller’s permit shall not be required if one has been or is issued to
the seller under Section 6067.

(3) A provision that all amendments begin delete subsequent to end delete begin insert after end insert the
effective date of the enactment of Part 1 (commencing with Section
6001) relating to sales and use tax and not inconsistent with this
part, shall automatically become a part of the sales and use tax
ordinance of the city.

(4) A provision that the city shall contract begin delete prior to end delete begin insert before end insert the
effective date of the city sales and use tax ordinance with the State
Board of Equalization to perform all functions incident to the
administration or operation of the sales and use tax ordinance of
the city which shall continue in effect so long as the county within
which the city is located has an operative sales and use tax
ordinance enacted pursuant to this part.

(5) A provision that the storage, use or other consumption of
tangible personal property, the gross receipts from the sale of which
has been subject to sales tax under a sales and use tax ordinance
enacted in accordance with this part by any city and county, county,
or city in this state, shall be exempt from the tax due under this
ordinance.

(6) A provision that the amount subject to tax shall not include
the amount of any sales tax or use tax imposed by the begin delete State of
California end delete begin insert state end insert upon a retailer or consumer.

(7) A provision that there are exempted from the computation
of the amount of the sales tax the gross receipts from the sale of
tangible personal property to operators of aircraft to be used or
consumed principally outside the city in which the sale is made
and directly and exclusively in the use of the aircraft as common
carriers of persons or property under the authority of the laws of
this state, the United States, or any foreign government.

(8) A provision that, in addition to the exemptions provided in
Sections 6366 and 6366.1, the storage, use, or other consumption
of tangible personal property purchased by operators of aircraft
and used or consumed by the operators directly and exclusively
in the use of the aircraft as common carriers of persons or property
for hire or compensation under a certificate of public convenience
and necessity issued pursuant to the laws of this state, the United
States, or any foreign government is exempt from the use tax.