BILL ANALYSIS �
AB 1126
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ASSEMBLY THIRD READING
AB 1126 (Charles Calderon)
As Amended January 4, 2012
Majority vote
REVENUE & TAXATION 7-0
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|Ayes:|Perea, Beall, Charles | | |
| |Calderon, Fuentes, | | |
| |Gordon, Harkey, Nestande | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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
AB 1126
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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.
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 : 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."
Assembly Revenue and Taxation Committee Staff Comments:
1)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).
2)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).
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098
AB 1126
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FN: 0002994