BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 843|
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CONSENT
Bill No: AB 843
Author: Charles Calderon (D)
Amended: 1/4/12 in Assembly
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 9-0, 6/28/12
AYES: Wolk, Dutton, DeSaulnier, Fuller, Hernandez, Kehoe,
La Malfa, Liu, Yee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 75-0, 1/26/12 (Consent) - See last page
for vote
SUBJECT : BOE: nonmonetized bullion and numismatic coin
exemption
SOURCE : Author
DIGEST : This bill changes the date for the Board of
Equalization (BOE) to calculate the inflation adjustment to
the sales tax exemption from September 1 to October 1 on
nonmonetized bullion and numismatic coins.
ANALYSIS : Currently, the sales of bulk monetized bullion,
nonmonetized gold or silver bullion, and numismatic coins
are exempt from the sales and use tax. Monetized bullion
refers to coins used as currency, or certain gold
medallions authorized by federal law. Nonmonetized
bullion refers to coins whose value lies in their metal
CONTINUED
AB 843
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content -- e.g., Canadian Maple Leaf coins. Numismatic
coins are those that are collectible because of rarity or
artistic value.
BOE has indexed the $1,000 market value threshold for
"bulk" for inflation since 1993; sales below that price are
taxable. BOE must complete the inflation adjustment by
September 1 of each year, and based on the change in the
California Consumer Price Index. After BOE staff
calculates the change in CPI, which is not usually
available until late August of each year, not leaving
sufficient time for BOE to approve the change by the
statutory deadline.
This bill changes the deadline from September 1 to October
1 for BOE to perform the annual inflation adjustment to
determine the sales and use tax exemption threshold bulk
monetized bullion, nonmonetized gold or silver bullion, and
numismatic coins.
Comments
The purpose of the bill is to allow BOE staff sufficient
time to obtain data reflecting the change in the California
Consumer Price Index, prepare the necessary calculation,
and place the item on BOE's agenda.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/7/12)
Board of Equalization
ASSEMBLY FLOOR : 75-0, 1/26/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove,
Hagman, Hall, Hayashi, Roger Hern�ndez, Hill, Huber,
Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue,
AB 843
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3
Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan,
Perea, V. Manuel P�rez, Portantino, Silva, Skinner,
Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski,
Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Davis, Gorell, Halderman, Harkey, Smyth
AGB:n 8/8/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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