BILL NUMBER:  AB 2060
  VETOED	DATE: 09/30/2010




To the Members of the California State Assembly:
I am returning Assembly Bill 2060 without my signature.
First, I can understand the impact of new taxes on businesses and the
frustration that contractors may have when they are not exempted
from sales tax increases.  This is one of the reasons I have
continued to oppose raising additional taxes because it slows our
state's economic recovery efforts and dampens job creation.  However,
this bill seeks an overly broad and permanent exemption which
effectively shifts the burden of paying both state and local sales
tax increases from the contractor to the government entity and
ultimately, on California's taxpayers.   In addition, I believe this
bill is unnecessary because current law allows an exemption to
fixed-price contracts for city and county tax increases, and such
exemptions have been allowed on past statewide sales and use tax
increases.  I believe this process is appropriate and does not affect
district tax revenues, as this bill would propose to do.
For these reasons, I am unable to sign this bill.
Sincerely,

Arnold Schwarzenegger