BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2270
                                                                  Page  1

          Date of Hearing:   April 25, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 2270 (Harkey) - As Amended:  April 17, 2012 

          Policy Committee:                              Revenue and 
          Taxation     Vote:                            8-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill provides that, for reporting periods beginning on or 
          after January 1, 2012, the qualified use tax of an eligible 
          purchaser shall be due and payable to the State Board of 
          Equalization (BOE) on or before April 15 following the close of 
          the calendar year in which the use tax liability was incurred.  

           FISCAL EFFECT  

          The BOE estimates that this bill would have a negligible impact 
          on state and local revenues, a reduction of less than $10,000 
          annually.  
           
          COMMENTS  

           1)Rationale  .  According to the author, this legislation would 
            designate April 15 as the due date for use tax payments to the 
            BOE by eligible purchasers during the preceding calendar year. 
             The author points out that April 15th is the regular due date 
            for income taxes for individuals, and providing some 
            consistency in the due dates for purchasers incurring a use 
            tax liability provides a commonsense approach in administering 
            a law for which many California purchasers are unaware.

           2)Support.   This bill is sponsored by BOE and is intended to 
            provide consistency in the due dates for use tax payments by 
            purchasers that are not registered or required to be 
            registered with BOE.  BOE states, if an individual elects to 
            report his or her use tax liability on the state income tax 
            return, as long as the state income tax return is filed timely 
            (generally April 15 for personal income tax), the use tax 








                                                                  AB 2270
                                                                  Page  2

            payment is considered timely and no penalty or interest apply. 
             However, if, instead, that same individual paid the use tax 
            directly to the BOE on the same day using a BOE use tax 
            return, the payment would be considered late, and the 
            individual would be subjected to the late payment penalty and 
            interest.  

           3)There is no registered opposition to this bill.
                


           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081