BILL ANALYSIS                                                                                                                                                                                                    �




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  AB 1126                     HEARING:  6/27/12
          AUTHOR:  Calderon                     FISCAL:  No
          VERSION:  1/4/12                      TAX LEVY:  No
          CONSULTANT:  Miller                   

                         TRANSACTIONS AND USE TAX: RATE
          

          Cleans up the revenue & taxation code to make the 
          transactions & use tax rates consistent.


                           Background and Existing Law  

          Existing state law allows cities, counties and special 
          districts to impose a transactions and use tax in 
          increments of 0.125% upon voter approval.  This tax is 
          imposed in addition to the statewide sales and use tax rate 
          of 7.25%.  AB 686 (Huffman, 2011) changed the rate at which 
          the transactions and use tax could be imposed from 0.25% to 
          0.125% or multiple thereof.   While every other section of 
          the Revenue & Taxation Code cite the 0.125%, two sections 
          still state that the multiple must be 0.25%.


                                   Proposed Law  

          Assembly Bill 1126 is a technical cleanup bill to make all 
          the sections of the transactions and use tax consistent and 
          allow all taxes to be imposed in multiples of 0.125%


                               State Revenue Impact
           
          According to the BOE, this bill will have no impact on 
          state or local revenue. 


                                     Comments  

          1.   Purpose of the bill  .  This bill is sponsored by the BOE 
          to make simple technical changes to the transactions & use 
          tax rates.





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                                 Assembly Actions  

          Assembly Revenue and Taxation:       8-0
          Assembly Appropriations:            16-0
          Assembly Floor:                     72-0


                         Support and Opposition  (6/21/12)

           Support  :  Board of Equalization (sponsor).

           Opposition  :  Unknown.