SB 533, as amended, Pan. Cities and counties: sales and use tax agreements.
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. That law provides that for the purpose of a local sales tax adopted pursuant to that law, all retail sales are consummated at the place of business of the retailer unless otherwise specified.
Existing law prohibits a local agency, as defined to mean all cities and counties, from entering into any form of agreement with any other person that would involve the payment, transfer, diversion, or rebate of any amount of Bradley-Burns local tax proceeds for any purpose if the agreement results in a reduction in the amount of revenue that is received by another local agency from a retailer that is located within the territorial jurisdiction of that other local agency, and the retailer continues to maintain a physical presence within the territorial jurisdiction of that other local agency, with specified exceptions, including an exception for an agreement to pay or rebate any Bradley-Burns local tax revenue relating to a buying company, as defined.
This bill would repeal that prohibition and instead prohibit, on or after January 1, 2016, a local agency from entering into any form of agreement that would result, directly or indirectly, in the payment, transfer, diversion, or rebate of Bradley-Burns local tax proceeds to any person, as defined, for any purpose, if the agreement results in a reduction in the amount of Bradley-Burns tax proceeds that, in the absence of the agreement, would be received by another local agency and the retailer continues to maintain a physical presence within the territorial jurisdiction of that other local agency, with specified exceptions. This bill would also impose specified notification and reporting requirements on
a local agency entering into an agreement that results in a reduction of the amount of Bradley-Burns tax proceeds, that in the absence of the agreement, would be received by another local agency, prior to the ratification of that agreement. This bill would also require any local agency to post such an agreement on its Internet Web sitebegin delete the local agency has entered intoend delete, including any agreements entered into prior to the effective date of this bill that are still in effect. By imposing these notification and reporting requirements on a local agency, this bill would impose a state-mandated local program.begin insert This bill would exclude from these provisions a local agency that has a mutual tax revenue sharing agreement with each local agency that would be affected by the form of agreement generally prohibited by these provisions.end insert
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 53084.5 of the Government Code is
2repealed.
Section 53084.5 is added to the Government Code, to
4read:
(a) On or after January 1, 2016, a local agency shall
2not enter into any form of agreement that would result, directly or
3indirectly, in the payment, transfer, diversion, or rebate of any tax
4revenue resulting from the imposition of a sales and use tax under
5the Bradley-Burns Uniform Local Sales and Use Tax Law (Part
61.5 (commencing with Section 7200) of Division 2 of the Revenue
7and Taxation Code) to any person for any purpose when both of
8the following apply:
9(1) The agreement results in a reduction in the amount of
10revenue under the Bradley-Burns Uniform Local Sales and Use
11Tax Law that, in the absence of the agreement, would be received
12by another local
agency.
13(2) The retailer continues to maintain a physical presence within
14the territorial jurisdiction of that other local agency.
15(b) (1) A local agency entering into an agreement that results
16in a reduction of the amount of revenue under the Bradley-Burns
17Uniform Local Sales and Use Tax Law that, in the absence of the
18agreement, would be received by another local agency shall post
19the proposed agreement on its Internet Web site for at least 30
20days prior to ratification or approval of that agreement by its
21governing body.
22(2) A local agency entering into an agreement that results in a
23reduction of the amount of revenue under the Bradley-Burns
24Uniform Local Sales and Use Tax Law that, in the absence
of the
25agreement, would be received by another local agency shall notify
26the other local agency by certified mail addressed to the attention
27of the chief executive of that other local agency at least 60 days
28prior to ratification or approval of that agreement by its governing
29body.
30(3) A local agency shall post any agreement on its Internet Web
31site it has entered into that results in a reduction of the amount of
32revenue under the Bradley-Burns Uniform Local Sales and Use
33Tax Law that, in the absence of the agreement, would be received
34by another local agency, including any agreements entered into
35prior to the effective date of this section that are still in effect.
36(c) For the purposes of this section, the followingbegin delete definitionsend delete
37begin insert
termsend insert have the following meanings:
38(1) “Local agency” means a chartered or general law city, a
39chartered or general law county, or a city and county, of this state.
P4 1(2) “Person” means a person as defined in Section 6005 of the
2Revenue and Taxation Code.
3(3) “Physical presence” means the lease or ownership of any
4real property for the purpose of carrying on business operations.
5(4) “Retailer” means a retailer as defined by Section 6015 of
6the Revenue and Taxation Code.
7(d) This section shall not apply to any agreement by a local
8agency to pay or rebate any use
tax revenue resulting from the
9imposition of a use tax under the Bradley-Burns Uniform Local
10Sales and Use Tax Law relating to a use tax direct payment permit
11issued under Section 7051.3 of the Revenue and Taxation Code.
12(e) begin deleteNothing in this end deletebegin insertThis end insertsection shallbegin insert notend insert be interpreted to limit
13the ability of a local agency to contract with or otherwise enter
14into an agreement pursuant to subdivision (b) of Section 7056 of
15the Revenue and Taxation Code.
16(f) This section shall not apply to a local agency that has a
17mutual tax revenue sharing agreement with each local agency that
18would be affected by the form of agreement prohibited by
19subdivision (a).
If the Commission on State Mandates determines that
21this act contains costs mandated by the state, reimbursement to
22local agencies and school districts for those costs shall be made
23pursuant to Part 7 (commencing with Section 17500) of Division
244 of Title 2 of the Government Code.
O
98