Amended in Assembly May 13, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 799

Introduced by Assembly Member Wagner

February 21, 2013

An act to amend Section begin delete 6006.5, and to repeal Section 6019, end delete begin insert 6019 end insert of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

AB 799, as amended, Wagner. Sales and use tax: begin delete occasional sales. end delete begin insert retailer. end insert

Existing sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or 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. This law considers a person making more than 2 retail sales of tangible personal property during any 12-month period to be a retailer. begin delete Existing law also exempts from tax, the gross receipts from occasional sales of tangible personal property other than vehicles, vessels, or aircraft. end delete

This bill would begin delete repeal the provision considering end delete begin insert instead consider end insert a person making more than begin delete 2 end delete begin insert 12 end insert retail sales in a 12-month period a retailer begin delete and would include in the definition of an occasional sale, the sale of tangible personal property the gross receipts of which one $2000 or less, and would further include in that definition, 12 or fewer sales of tangible personal property in a 12-month period the gross receipts of which are more than $2000 end delete .

The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing law authorizes districts to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which conforms to the Sales and Use Tax Law. Amendments relating to state sales and use taxes generally are incorporated into these laws. Section 2230 of the Revenue and Taxation Code provides that the state will reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions.

This bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for sales and use tax revenues lost by them pursuant to this bill.

This bill would take effect immediately as a tax levy.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

begin delete

SECTION 1.  

Section 6006.5 of the Revenue and Taxation
Code is amended to read:

6006.5.  

“Occasional sale” includes all of the following:

(a) A sale of tangible personal property not held or used by a
seller in the course of activities for which he or she is required to
hold a seller’s permit or permits or would be required to hold a
seller’s permit or permits if the activities were conducted in this
state, provided that the sale satisfies any of the following:

(1) The sale is not one of a series of sales sufficient in number,
scope, and character to constitute an activity for which he or she
is required to hold a seller’s permit or would be required to hold
a seller’s permit if the activity were conducted in this state.

(2) The gross receipts from the sale of tangible personal property
are two thousand dollars ($2000.00) or less.

(3) The seller makes no more than 12 sales of tangible personal
property the gross receipts from which exceed two thousand dollars
($2000.00) during any 12-month period.

(b) Any transfer of all or substantially all the property held or
used by a person in the course of those activities when after the
transfer the real or ultimate ownership of the property is
substantially similar to that which existed before the transfer. For
the purposes of this section, stockholders, bondholders, partners,
or other persons holding an ownership interest in a corporation or
other entity are regarded as having the “real or ultimate ownership”
of the property of the corporation or other entity.

(c) A sale of property, other than hay, by a producer of hay,
provided that the sale is not one of a series of sales sufficient in
number, scope, or character to constitute an activity for which the
producer would be required to hold a seller’s permit if the producer
were not also selling hay.

end delete

begin delete

SEC. 2.  

Section 6019 of the Revenue and Taxation Code is
repealed.

end delete

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 6019 of the end insert begin insert Revenue and Taxation Code end insert
begin insert is amended to read: end insert

6019.  

Every individual, firm, copartnership, joint venture, trust,
business trust, syndicate, association or corporation making more
than begin delete two end delete begin insert 12 end insert retail sales of tangible personal property during any
12-month period, including sales made in the capacity of assignee
for the benefit of creditors, or receiver or trustee in bankruptcy,
shall be considered a retailer within the provisions of this part in
his or its individual, firm, copartnership, joint venture, trust,
business trust, syndicate, associate or corporate capacity.

begin delete SEC. 3. end delete
begin insert SEC. 2. end insert   

Notwithstanding Section 2230 of the Revenue and
Taxation Code, no appropriation is made by this act and the state
shall not reimburse any local agency for any sales and use tax
revenues lost by it under this act.

begin delete SEC. 4. end delete
begin insert SEC. 3. end insert   

This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.