Amended in Senate March 26, 2015

Senate Bill No. 120

Introduced by Senator Anderson

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(Coauthor: Assembly Member Jones)

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January 15, 2015

An act to begin delete amend Section 6051 of end delete begin insert add Section 6012.4 to end insert the Revenue and Taxation Code, relating to taxation begin insert , to take effect immediately, tax levy end insert .

LEGISLATIVE COUNSEL’S DIGEST

SB 120, as amended, Anderson. Sales and use begin delete taxes. end delete begin insert taxes: exclusion: public safety first responder vehicle and equipment. end insert

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Existing sales and use tax laws impose a tax 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, measured by sales price. The Sales and Use Tax Law defines the terms “gross receipts” and “sales price.”

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This bill would, in the sale of any public safety first responder vehicle that is purchased by a local public agency and in the sale of any equipment required on a public safety first responder vehicle that is purchased by a local public agency, exclude from the terms “gross receipts” and “sales price,” amounts of the gross receipts or sales price in excess of $300,000.

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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 generally conforms to the Sales and Use Tax Law. Amendments to state sales and use taxes are incorporated into these laws.

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Section 2230 of the Revenue and Taxation Code provides that the state will reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions.

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This bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse any local agencies for sales and use tax revenues lost by them pursuant to this bill.

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This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.

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A provision of the Sales and Use Tax Law imposes a state sales tax at a rate of 43⁄4% of the gross receipts of the retail sale of tangible personal property in the state.

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This bill would make technical, nonsubstantive changes to that provision.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

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begin insert SECTION 1. end insert   

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begin insert Section 6012.4 is added to the end insert begin insert Revenue and
Taxation Code end insert begin insert , to read: end insert

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begin insert 6012.4. end insert   

(a) (1) For purposes of this part, “gross receipts”
and “sales price” shall not include amounts of the gross receipts
or sales price in excess of three hundred thousand dollars
($300,000) from the sale in this state of, and the storage, use, or
other consumption in this state of, any public safety first responder
vehicle purchased by a local public agency.

(2) For purposes of this part, “gross receipts” and “sales price”
shall not include the gross receipts or sales price above three
hundred thousand dollars ($300,000) from the sale in this state
of, and the storage, use, or other consumption in this state of, any
equipment required on a public safety first responder vehicle, that
is purchased by a local public agency.

(b) “Local public agency” means any city, county, municipal
corporation, district, or public authority located within this state
that provides or may provide first responder emergency services.

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begin insert SEC. 2. end insert   

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Notwithstanding Section 2230 of the Revenue and
Taxation Code, no appropriation is made by this act and the state
shall not reimburse any local agency for any sales and use tax
revenues lost by it under this act.

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begin insert SEC. 3. end insert   

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This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
However, the provisions of this act shall become operative on the
first day of the first calendar quarter commencing more than 90
days after the effective date of this act.

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SECTION 1.  

Section 6051 of the Revenue and Taxation Code
is amended to read:

6051.  

For the privilege of selling tangible personal property at
retail, a tax is imposed upon all retailers at the rate of 43⁄4 percent
of the gross receipts of any retailer from the sale of all tangible
personal property sold at retail in this state.

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