BILL NUMBER: SB 421	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Correa

                        FEBRUARY 16, 2011

   An act to amend Section 6010 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 421, as introduced, Correa. Sales and use taxes: purchase.
   The Sales and Use Tax Law imposes a use tax on the storage, use,
or other consumption in this state of tangible personal property
purchased from a retailer for storage, use, or other consumption in
this state. That law specifies that a "purchase" means and includes,
among other things, a transaction whereby the possession of tangible
personal property is transferred, but the seller retains the title to
the property as security for the payment of the price.
   This bill would make technical, nonsubstantive changes to this
definition of purchase.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 6010 of the Revenue and Taxation Code is
amended to read:
   6010.  "Purchase" means and includes:
   (a) Any transfer of title or possession, exchange, or barter,
conditional or otherwise, in any manner or by any means whatsoever,
of tangible personal property for a consideration. "Transfer of
possession" includes only transactions found by the board to be in
lieu of a transfer of title, exchange, or barter.
   (b) When performed outside this state or when the customer gives a
resale certificate pursuant to Article 3 (commencing with Section
6091) of Chapter 2, the producing, fabricating, processing, printing,
or imprinting of tangible personal property for a consideration for
consumers who furnish either directly or indirectly the materials
used in the producing, fabricating, processing, printing, or
imprinting.
   (c) A transaction whereby the possession of property is
transferred  ,  but the seller retains the title as security
for the payment of the price.
   (d) A transfer for a consideration of tangible personal property
 which   that  has been produced,
fabricated, or printed to the special order of the customer, or of
any publication.
   (e) Any lease of tangible personal property in any manner or by
any means whatsoever, for consideration, except a lease of:
   (1) Motion pictures or animated motion pictures, including
television, films, and tapes.
   (2) Linen supplies and similar articles when an essential part of
the lease agreement is the furnishing of the recurring service of
laundering or cleaning the articles.
   (3) Household furnishings with a lease of the living quarters in
which they are to be used.
   (4) Mobile transportation equipment for use in transportation of
persons or property as defined in Section 6023.
   (5) Tangible personal property leased in substantially the same
form as acquired by the lessor or leased in substantially the same
form as acquired by a transferor, as to which the lessor or
transferor has paid sales tax reimbursement or has paid use tax
measured by the purchase price of the property. For purposes of this
paragraph, "transferor" shall mean the following:
   (A) A person from whom the lessor acquired the property in a
transaction described in subdivision (b) of Section 6006.5.
   (B) A decedent from whom the lessor acquired the property by will
or the laws of succession.
   (6) A mobilehome, as defined in Sections 18008 and 18211 of the
Health and Safety Code, other than a mobilehome originally sold new
prior to July 1, 1980, and not subject to local property taxation.
   (7) Paragraphs (1) and (5) and Section 6094.1  shall
  do  not apply to rentals or leases of video
cassettes, video tapes, and video discs for private use under which
the lessee or renter does not obtain or acquire the right to license,
broadcast, exhibit, or reproduce the video cassette, video tape, or
video disc.