BILL ANALYSIS
AB 2533
Page 1
ASSEMBLY THIRD READING
AB 2533 (Leno)
As Amended April 17, 2006
Majority vote
REVENUE & TAXATION 7-0 APPROPRIATIONS 18-0
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|Ayes:|Klehs, Walters, |Ayes:|Chu, Sharon Runner, Bass, |
| |Canciamilla, Chu, | |Berg, Calderon, De La |
| |DeVore, Jones, Lieber | |Torre, Emmerson, Haynes, |
| | | |Karnette, Klehs, Leno, |
| | | |Nakanishi, Nation, Oropeza, |
| | | | |
| | | |Ridley-Thomas, Saldana, |
| | | |Walters, Yee |
|-----+-------------------------+-----+----------------------------|
| | | | |
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SUMMARY : Provides an exemption from Sales and Use Tax (SUT) to
original works of art leased for 35 years or more from one nonprofit
organization to another, or leased by a state or local government.
EXISTING LAW :
1)Provides a SUT exemption for sales of original works of art, as
specified, items which have value as museum pieces, as specified,
and certain purchases of public art by the state or any local
government entity for display to the public in public places, as
specified.
2)Does not provide an exemption for long-term leases of original
works of art from one non-profit organization to another
non-profit organization.
FISCAL EFFECT : According to the Board of Equalization, state
revenue loss of $23,625 in fiscal year (FY) 2006-07, $18,375 in FY
2007-08, and $15,750 in FY 2008-09.
COMMENTS : According to the author, this bill is intended to expand
the current sales tax exemption to include the long-term lease of
artwork from one non-profit organization to another. Last year, the
Autry Center entered into a long-term collections sharing agreement
with the California Historical Society. Sixty major paintings and
over 600 articles of rare dress and clothing, all pertaining to
California's early history, will be stored and exhibited by the
Autry Center at its Museum of the American West in Los Angeles. The
Autry Center will assume general curatorial control of the
AB 2533
Page 2
collection, storage and transit responsibilities, and exhibition
space and public access responsibilities. In return, the Autry
Center will contribute $3.5 million to the California Historical
Society, over a 15-year period. These works of art have largely
been inaccessible to the public for over 75 years.
Committee staff note that this bill could set a precedent for
extending sales tax exemptions for leasing agreements of other goods
to non-profits and government entities (e.g., schools, fire
districts, and police departments).
Supporters note that, "[T]his bill will support collection-sharing
efforts and an innovative partnership between two respected
California museums, the California Historical Society and the Autry
National Center, while also serving as a model for other museums
across the state. They continue, "Museums contribute significantly
to the state's arts and cultural landscape by serving over 26
million visitors annually, acting as a repository for California
natural and cultural history, and providing and supporting
educational programs for all ages."
Analysis Prepared by : Sabrina Landreth / REV. & TAX. / (916)
319-2098 FN: 0014137