BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1423
                                                                  Page  1

          Date of Hearing:  May 9, 2011

                     ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
                                Henry T. Perea, Chair

            AB 1423 (Committee on Revenue and Taxation) - As Introduced:  
                                   March 22, 2011
           
           Majority vote.
           
          SUBJECT  :  Sales and use taxes:  exemptions 

           SUMMARY  :  Deletes obsolete provisions of the Sales and Use Tax 
          (SUT) Law.  Specifically,  this bill  makes purely technical 
          amendments to existing SUT exemption provisions as a matter of 
          code maintenance.  

           EXISTING LAW  imposes a:  

          1)Sales tax on retailers for the privilege of selling tangible 
            personal property (TPP), absent a specific exemption.  The tax 
            is based upon the retailer's gross receipts from TPP sales in 
            this state.  

          2)Complementary use tax on the storage, use, or other 
            consumption in this state of TPP purchased from any retailer.  
             

           FISCAL EFFECT :  None.  

           COMMENTS  :  This purely technical bill deletes obsolete 
          references within the SUT Law to a potential October 1, 2001 
          implementation date for several SUT exemptions.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file 

           Opposition 
           
          None on file
           
          Analysis Prepared by  :  M. David Ruff / REV. & TAX. / (916) 








                                                                  AB 1423
                                                                  Page  2

          319-2098