BILL NUMBER: AB 229	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 14, 2009

INTRODUCED BY   Assembly Member Charles Calderon

                        FEBRUARY 5, 2009

    An act to amend Section 23051.7 of the Revenue and
Taxation Code, relating to taxation.   An act to amend
Section 6396 of the Revenue and Taxation Code, relating to taxation,
to take effect immediately, tax levy. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 229, as amended, Charles Calderon.  Income and
corporation taxes: tax computation.   Sales tax:
property shipped outside the state.  

   The Sales and Use Tax Law imposes a sales tax on a retailer
measured by the gross receipts from the retail sale in this state of
tangible personal property and a use tax on the storage, use, or
other consumption of tangible personal property in this state of
tangible personal property purchased from a retailer for storage,
use, or other consumption in this state. That law provides various
exemptions from those taxes, including an exemption from sales tax
for a sale of tangible personal property in this state, when the
contract of sale requires that property to be shipped, and it is
shipped, in a specified manner, to a point outside the state.
   Counties and cities are authorized to impose local sales and use
taxes in conformity with the Sales and Use Tax Law, and districts are
authorized to impose transactions and use taxes in conformity with
the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law
are incorporated into these taxes.
   This bill would limit the exemption from sales tax, when the
contract of sale requires that the tangible personal property to be
shipped, and it is shipped, to another state, to any amount in excess
of the rate of the state sales tax imposed by the state of
destination.
   This bill would take effect immediately as a tax levy. 

   Existing income tax laws provide that specified amendments to
those laws do not affect the tax treatment of a carryover of a
credit, excess contribution loss, or basis computation to which a
taxpayer was entitled prior to the amendments.  
   This bill would make technical, nonsubstantive changes to these
provisions. 
   Vote:  majority   2/3 . Appropriation:
no. Fiscal committee:  no   yes  .
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 6396 of the   Revenue
and Taxation Code   is amended to re   ad: 
   6396.   There   (a)    
There  are exempted from the computation of the amount of the
sales tax the gross receipts from the sale of tangible personal
property which, pursuant to the contract of sale, is required to be
shipped and is shipped to a point  outside this state
  in a foreign country  by the retailer by means
of:  (a)   (1)  facilities operated by the
retailer, or  (b)   (2)  delivery by the
retailer to a carrier, customs broker  ,  or forwarding
agent, whether hired by the purchaser or not, for shipment to
 such out-of-state   the foreign  point.

   For  
   (b) There are exempted from the computation of the amount of the
sales tax any amount that is in excess of the rate of the state sales
tax imposed by the state of destination for the gross receipts from
the sale of tangible personal property which, pursuant to the
contract of sale, is required to be shipped and is shipped to a point
outside this state and in another state by the retailer by means of:
(1) facilities operated by the retailer, or (2) delivery by the
retailer to a carrier, customs broker, or forwarding agent, whether
hired by the purchaser or not, for shipment to such out-of-state
point. 
    (c)     For  purposes of this section,
the term "carrier" shall mean a person or firm engaged in the
business of transporting for compensation tangible personal property
owned by other persons, and includes both common and contract
carriers. The term "forwarding agent" shall mean a person or firm
engaged in the business of preparing property for shipment or
arranging for its shipment.
   SEC. 2.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  
  SECTION 1.   Section 23051.7 of the Revenue and
Taxation Code is amended to read:
   23051.7.  (a) The enactment of the act adding this section to the
code shall not deprive a taxpayer of a carryover of a credit, excess
contribution, or loss to which that taxpayer was entitled under this
part, including all amendments enacted prior to January 1, 1987.
   (b) The carryover of the credit, excess contribution, or loss
shall be allowed to be carried forward under the act adding this
section to the code for the same period of time as the taxpayer would
have been entitled to carry that item forward under prior law.
   (c) For purposes of applying the provisions of the act adding this
section to the code, the basis or recomputed basis of an asset
acquired prior to January 1, 1987, shall be determined under the law
at the time the asset was acquired and adjustments to basis shall be
computed as follows:
   (1) Any adjustments to basis for income years beginning prior to
January 1, 1987, shall be computed under applicable provisions of
this part, including all amendments enacted prior to January 1, 1987.

   (2) Any adjustments to basis for taxable years beginning on or
after January 1, 1987, shall be computed under the applicable
provisions of the act adding this section to the code.
   (d) For income years beginning on or after January 1, 1987, and
before January 1, 1988, references in this part to "alternative
minimum tax" shall be deemed to be references to the "tax on
preference income."