SB 120, as amended, Anderson. Sales and use taxes: exclusion: public safety first responder vehicle and equipment.
Existing sales and use tax laws imposebegin delete a taxend deletebegin insert taxesend insert 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.”
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 pricebegin insert of an individual itemend insert in excess of $300,000.begin insert The bill, for the purposes of this exclusion, would define “local public agency” as a fire protection district or a fire department of a city, county, municipal corporation, district, or public authority located within this state.end insert
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.
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.
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.
This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.
Vote: majority.
Appropriation: no.
Fiscal committee: yes.
State-mandated local program: begin deleteyes end deletebegin insertnoend insert.
The people of the State of California do enact as follows:
Section 6012.4 is added to the Revenue and
2Taxation Code, to read:
(a) (1) For purposes of this part, “gross receipts” and
4“sales price” shall not include amounts of the gross receipts or
5sales pricebegin insert of an individual itemend insert in excess of three hundred
6thousand dollars ($300,000) from the sale in this state of, and the
7storage, use, or other consumption in this state of, any public safety
8first responder vehicle purchased by a local public agency.
9(2) For purposes of this part, “gross receipts” and “sales price”
10shall not includebegin insert amounts ofend insert
the gross receipts or sales pricebegin delete aboveend delete
11begin insert of an individual item in excess ofend insert three hundred thousand dollars
12($300,000) from the sale in this state of, and the storage, use, or
13other consumption in this state of, any equipment required on a
14public safety first responder vehicle, that is purchased by a local
15public agency.
16(b) begin delete“Local end deletebegin insertFor the purposes of this section, “local end insertpublic
17agency” meansbegin delete anyend deletebegin insert
a fire protection district or a fire department
18of aend insert city, county, municipal corporation, district, or public authority
P3 1located within thisbegin delete state that provides or may provide first begin insert state.end insert
2responder emergency services.end delete
Notwithstanding Section 2230 of the Revenue and
4Taxation Code, no appropriation is made by this act and the state
5shall not reimburse any local agency for any sales and use tax
6revenues lost by it under this act.
This act provides for a tax levy within the meaning of
8Article IV of the Constitution and shall go into immediate effect.
9However, the provisions of this act shall become operative on the
10first day of the first calendar quarter commencing more than 90
11days after the effective date of this act.
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