BILL NUMBER: SB 533 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JULY 6, 2015
AMENDED IN ASSEMBLY JUNE 10, 2015
INTRODUCED BY Senator Pan
FEBRUARY 26, 2015
An act to repeal and add Section 53084.5 of the Government Code,
relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
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
revenues 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 revenues to any person, as
defined, for any purpose, if the agreement results in a reduction in
the amount of Bradley-Burns local tax proceeds
revenues 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 local tax
proceeds, revenues, 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 site,
including any agreements entered into prior to the effective
date of this bill January 1, 2016, 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. 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.
any mutual tax revenue sharing agreement between local
agencies to pay, transfer, or divert Bradley-Burns local tax reve
nues to another local agency, and where the agreement
would not result, directly or indirectly, in the payment,
transfer, diversion, or rebate of those tax revenues to a retailer.
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 1. Section 53084.5 of the Government Code is repealed.
SEC. 2. Section 53084.5 is added to the Government Code, to read:
53084.5. (a) On or after January 1, 2016, a local agency shall
not enter into any form of agreement that would result, directly or
indirectly, in the payment, transfer, diversion, or rebate of any tax
revenue resulting from the imposition of a sales and use tax under
the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5
(commencing with Section 7200) of Division 2 of the Revenue and
Taxation Code) to any person for any purpose when both of the
following apply:
(1) The agreement results in a reduction in the amount of revenue
under the Bradley-Burns Uniform Local Sales and Use Tax Law that, in
the absence of the agreement, would be received by another local
agency.
(2) The retailer continues to maintain a physical presence within
the territorial jurisdiction of that other local agency.
(b) (1) A local agency entering into an agreement that results in
a reduction of the amount of revenue under the Bradley-Burns Uniform
Local Sales and Use Tax Law that, in the absence of the agreement,
would be received by another local agency shall post the proposed
agreement on its Internet Web site for at least 30 days prior to
ratification or approval of that agreement by its governing body.
(2) A local agency entering into an agreement that results in a
reduction of the amount of revenue under the Bradley-Burns Uniform
Local Sales and Use Tax Law that, in the absence of the agreement,
would be received by another local agency shall notify the other
local agency by certified mail addressed to the attention of the
chief executive of that other local agency at least 60 days prior to
ratification or approval of that agreement by its governing body.
(3) A local agency shall post any agreement on its Internet Web
site it has entered into that results in a reduction of the amount of
revenue under the Bradley-Burns Uniform Local Sales and Use Tax Law
that, in the absence of the agreement, would be received by another
local agency, including any agreements entered into prior to
the effective date of this section January 1, 2016,
that are still in effect on and after that date .
(c) For the purposes of this section, the following terms have the
following meanings:
(1) "Local agency" means a chartered or general law city, a
chartered or general law county, or a city and county, of this state.
(2) "Person" means a person as defined in Section 6005 of the
Revenue and Taxation Code.
(3) "Physical presence" means the lease or ownership of any real
property for the purpose of carrying on business operations.
(4) "Retailer" means a retailer as defined by Section 6015 of the
Revenue and Taxation Code.
(d) This section shall not apply to any agreement by a local
agency to pay or rebate any use tax revenue resulting from the
imposition of a use tax under the Bradley-Burns Uniform Local Sales
and Use Tax Law relating to a use tax direct payment permit issued
under Section 7051.3 of the Revenue and Taxation Code.
(e) This section shall not be interpreted to limit the ability of
a local agency to contract with or otherwise enter into an agreement
pursuant to subdivision (b) of Section 7056 of the Revenue and
Taxation Code.
(f) This section shall not apply to a local agency that
has a mutual tax revenue sharing agreement with each local agency
that would be affected by the form of agreement prohibited by
subdivision (a). any mutual tax revenue sharing
agreement between local agencies to pay, transfer, or divert tax
revenues that would be received by a local agency resulting from the
imposition of a sales and use tax under the Bradley-Burns Uniform
Local Sales and Use Tax Law to another local agency, and where the
agreement would not result, directly or indirectly, in the payment,
transfer, diversion, or rebate of those tax revenues to a retailer.
SEC. 3. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.