BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 2270|
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                                    CONSENT


          Bill No:  AB 2270
          Author:   Harkey (R)
          Amended:  4/17/12 in Assembly
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  9-0, 6/28/12
          AYES:  Wolk, Dutton, DeSaulnier, Fuller, Hernandez, Kehoe, 
            La Malfa, Liu, Yee

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8
           
          ASSEMBLY FLOOR  :  72-0, 5/3/12 (Consent) - See last page for 
            vote


           SUBJECT  :    Sales and use tax:  use

           SOURCE  :     Board of Equalization


           DIGEST  :    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 Board of Equalization (BOE) on or before April 15th 
          following the close of the calendar year in which the use 
          tax liability was incurred.

           ANALYSIS  :    Existing law imposes a sales tax and 
          complementary use tax on retailers for the privilege of 
          selling tangible personal property based upon the 
          retailer's gross receipts in this state, unless 
          specifically exempted.  The use tax is imposed on the 
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                                                               AB 2270
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          2

          purchaser for the storage, use, or other consumption in 
          this state of goods purchased from any retailer.  The 
          standard statewide sales and use tax is 7.25%.  Cities, 
          counties and special districts may impose an additional 
          transactions and use tax (sales tax) with voter approval as 
          well.

          Existing law allows taxpayers to pay their use tax 
          liability either directly to the BOE by January 31st or on 
          their income tax returns by April 15th.  

          This bill provides that the "qualified use tax" as defined 
          by current law of an "eligible purchaser" defined as a 
          purchaser of goods subject to the use tax shall be due and 
          payable to BOE on or before April 15th following the close 
          of the calendar year in which the use tax liability was 
          incurred.  The eligible purchaser also is not required to 
          be registered with the BOE.  This bill specifies that 
          "qualified use tax" does not include the use tax imposed on 
          specified mobile homes, vehicles, and leases.

           Comments
           
          Under existing law, a taxpayer may file his/her use tax on 
          the income tax return by April 15th but must file his/her 
          use tax payment directly with the BOE by January 31st.  If 
          the taxpayer pays the tax directly to the BOE on April 
          15th, he/she would be considered late and the individual 
          would be subjected to the late payment penalty and 
          interest.  This bill makes the dates consistent and less 
          confusing for the taxpayer.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (Verified  8/8/12)

          Board of Equalization (source)
          California Society of Enrolled Agents
          Senator George Runner (Retired), BOE Member

           OPPOSITION  :    (Verified  8/8/12)

          Department of Finance

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                                                               AB 2270
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          3


           
          ASSEMBLY FLOOR  :  72-0, 5/3/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bradford, Brownley, 
            Buchanan, Butler, Charles Calderon, Campos, Carter, 
            Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines, 
            Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman, 
            Halderman, Harkey, Hayashi, Hill, Huber, Hueso, Huffman, 
            Jeffries, Knight, Lara, Logue, Bonnie Lowenthal, Ma, 
            Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, 
            Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel 
            P�rez, Portantino, Silva, Skinner, Solorio, Swanson, 
            Torres, Valadao, Wagner, Wieckowski, Yamada, John A. 
            P�rez
          NO VOTE RECORDED:  Bonilla, Fletcher, Furutani, Hall, Roger 
            Hern�ndez, Jones, Smyth, Williams


          AGB:m  8/8/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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