BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 843
                                                                  Page  1

          Date of Hearing:   January 19, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 843 (Calderon) - As Amended:  January 4, 2012 

          Policy Committee:                              Revenue and 
          Taxation     Vote:                            9-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill changes the date when the Board of Equalization (BOE) 
          must annually adjust for inflation the monetary threshold for 
          sales of monetized bullion, non-monetized gold or silver bullion 
          and numismatic coins (collectively, precious metals).  Sales 
          above the monetary value threshold are exempt under the sales 
          and use tax law.
           
          FISCAL EFFECT  

          Negligible.

           COMMENTS  

           1)Purpose  .  AB 843 changes the date from September 1 to October 
            1 when BOE must determine the bulk sale threshold.  This 
            change will give BOE staff sufficient time to obtain the June 
            California Consumer Price Index (CCPI), prepare the necessary 
            calculation and place the item on the BOE meeting agenda. 

           2)Background  .  The Revenue and Taxation Code provides an 
            exemption for the sale or purchase "in bulk" of precious 
            metals.  A sale in bulk shall be deemed to have occurred if 
            the amount sold in the transaction totals $1,000 or more (or 
            its present day equivalent adjusted for inflation).  BOE is 
            required to determine annually if an adjustment of the bulk 
            sale threshold is necessary. 

           3)Sponsor  .  The bill's sponsor, BOE, states that an October 1 
            date will provide for adequate lead time to amend the BOE 
            regulations and notify the public in the event the calculation 








                                                                  AB 843
                                                                  Page  2

            results in a new operative threshold.
             
           4)This bill has no registered opposition.


          Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081