BILL ANALYSIS �
AB 1126
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Date of Hearing: January 9, 2012
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Henry T. Perea, Chair
AB 1126 (Calderon) - As Amended: January 4, 2012
Majority vote.
SUBJECT : Transaction and use tax: rate
SUMMARY : Amends two sections of the Transactions and Use Tax
(TUT) Law as a housekeeping matter. Specifically, this bill
amends Revenue and Taxation Code (R&TC) Sections 7261 and 7262
to conform to changes implemented by AB 686 (Huffman), Chapter
176, Statutes of 2011, which decreased the rate at which a city
or county may levy, increase, or extend a TUT from 0.25% (or a
multiple thereof) to a rate of 0.125% (or a multiple thereof).
EXISTING LAW :
1)Authorizes a county to impose a TUT for general purposes at a
rate of 0.125% (or a multiple thereof), if the ordinance
proposing the tax is approved by a two-thirds vote of the
board of supervisors and a majority vote of the qualified
voters of the county.
2)Authorizes a county to impose a TUT for special purposes at a
rate of 0.125% (or a multiple thereof), if the ordinance
proposing the tax is approved by a two-thirds vote of the
board of supervisors and a two-thirds vote of the qualified
voters of the county.
3)Authorizes a city to impose a TUT for general purposes at a
rate of 0.125% (or a multiple thereof), if the ordinance
proposing the tax is approved by a two-thirds vote of all
members of the governing body and a majority vote of the
qualified voters of the city.
4)Authorizes a city to impose a TUT for special purposes at a
rate of 0.125% (or a multiple thereof), if the ordinance
proposing the tax is approved by a two-thirds vote of all
members of the governing body and a two-thirds vote of the
qualified voters of the city.
AB 1126
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5)Provides, per R&TC Section 7261, that the transactions tax
portion of any TUT ordinance adopted shall include a provision
imposing the tax for the privilege of selling tangible
personal property (TPP) upon every retailer in the district at
a rate of 0.25% (or a multiple thereof).
6)Provides, per R&TC Section 7262, that the use tax portion of
any TUT ordinance adopted shall impose a complementary tax
upon the storage, use, or other consumption in the district of
TPP at the rate of 0.25% (or a multiple thereof).
FISCAL EFFECT : The State Board of Equalization (BOE) estimates
no impact to state or local government revenues.
COMMENTS :
1)The author provides the following statement in support of this
bill:
AB 1126 is a clean-up bill to amend Sections 7261 and 7262
of the Transactions and Use Tax Law to make it consistent
with specified sections of the Transactions and Use Tax Law
that were amended by AB 686.
2)Committee Staff Comments
a) AB 686 (Huffman) : On August 4, 2011, Governor Brown
approved AB 686 (Huffman), Chapter 176, Statutes of 2011.
AB 686 amended various sections of the R&TC to decrease the
rate at which a city or county may levy, increase, or
extend a TUT from 0.25% (or a multiple thereof) to a rate
of 0.125% (or a multiple thereof).
b) This proposal : This BOE-sponsored housekeeping proposal
would change the rate in R&TC Sections 7261 and 7262 from
0.25% to 0.125%, to conform to the changes made by AB 686
(Huffman).
REGISTERED SUPPORT / OPPOSITION :
Support
Board of Equalization (sponsor)
AB 1126
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Opposition
None on file
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098