BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2533|
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THIRD READING
Bill No: AB 2533
Author: Leno (D)
Amended: 4/17/06 in Assembly
Vote: 21
SENATE REVENUE & TAXATION COMMITTEE : 7-0, 6/28/06
AYES: Machado, Dutton, Alquist, Cedillo, Poochigian,
Runner, Scott
SENATE APPROPRIATIONS COMMITTEE : 13-0, 8/8/06
AYES: Murray, Aanestad, Alarcon, Alquist, Ashburn, Battin,
Dutton, Escutia, Florez, Ortiz, Poochigian, Romero,
Torlakson
ASSEMBLY FLOOR : 75-0, 5/4/06 - See last page for vote
SUBJECT : Sales tax exemptions: exemption: art
SOURCE : California Historical Society
DIGEST : This bill provides an exemption from Sales and
Use Tax 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.
ANALYSIS : Existing law provides a Sales and Use Tax
(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
CONTINUED
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public places, as specified and does not provide an
exemption for long-term leases of original works of art
form on e nonprofit organization to another nonprofit
organization.
This bill:
1.Exempts from the sales and use tax the lease of original
works of art, if both the lessor and lessee are nonprofit
organizations qualified for exemption from state income
tax.
2.Provides that in order for the art collection to be
considered part of the permanent collection of the lessee
the lease term must be at least 35 years.
3.Provides that the exemption applies to works of art that
are purchased and become part of the permanent collection
of a governmental entity that leases from another
governmental entity art for public display.
4.Clarifies those purchases of clothing, costumes, dresses,
and personal adornment that are works of art and will be
exempt from tax.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/10/06)
California Historical Society (source)
California Association of Museums
Autry National Center
California Arts Advocates
ARGUMENTS IN SUPPORT : The sponsor of the amendment is
the California Historical Society. The purpose of this
bill is to allow leases of works of art, including dresses
and costumes, between certain nonprofit organizations to be
exempt from tax. The leases will be based on a collection
sharing agreement, of not less than 35 years, that allows
museums to share parts of their art collections that may
not be on display, due to the size of the museum, type of
collection, or for other reasons, and share them with
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museums with larger space or similar collections.
Structured as a lease, these sharing agreements allow the
nonprofit organizations to retain title to their pieces
while generating funds to support other exhibits and
programs, provide continuing educational material, and
enhance the overall enjoyment and appreciation of art
ASSEMBLY FLOOR :
AYES: Aghazarian, Arambula, Baca, Bass, Benoit, Berg,
Bermudez, Blakeslee, Bogh, Calderon, Canciamilla, Chavez,
Chu, Cogdill, Cohn, Coto, Daucher, De La Torre, DeVore,
Dymally, Emmerson, Evans, Frommer, Goldberg, Hancock,
Harman, Jerome Horton, Shirley Horton, Houston, Huff,
Jones, Karnette, Keene, Klehs, Koretz, La Malfa, Laird,
Leno, Leslie, Levine, Lieber, Lieu, Liu, Matthews, Maze,
McCarthy, Montanez, Mountjoy, Mullin, Nakanishi, Nation,
Nava, Negrete McLeod, Niello, Oropeza, Parra, Pavley,
Plescia, Richman, Ridley-Thomas, Sharon Runner, Ruskin,
Saldana, Salinas, Strickland, Torrico, Tran, Umberg,
Vargas, Villines, Walters, Wolk, Wyland, Yee, Nunez
NO VOTE RECORDED: Chan, Garcia, Haynes, La Suer, Spitzer
DLW:do 8/10/06 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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