California Legislature—2013–14 Regular Session

Assembly Bill No. 1204

Introduced by Assembly Member Gorell

February 22, 2013

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

LEGISLATIVE COUNSEL’S DIGEST

AB 1204, as introduced, Gorell. 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 begin insert , end insert but the seller retains the title as security for the payment
of the price.

(d) A transfer for a consideration of tangible personal property
begin delete which end delete begin insert that end insert 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 begin delete shall end delete begin insert do end insert 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.