AB 1778, as introduced, Allen. Property taxation: exempt property.
Existing law exempts from property taxation the first $50,000 worth of hand tools that are owned and supplied by an employee as a condition of employment.
This bill would make technical, nonsubstantive changes to this provision.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 241 of the Revenue and Taxation Code
2 is amended to read:
(a) The first fifty thousand dollars ($50,000) of personal
4property that consists of hand tools owned and supplied by an
5employee that are required as a condition of that employee’s
6employment are exempt from taxation.
7(b) For purposes of this section:
8(1) “Hand tools” means hand-held implements and equipment,
9including hand-held power tools, of which any one may be
10transported to and from the workplace and which are necessary
P2 1for the ordinary and regular performance of the employee’s work,
2and also means the appropriate storage containers used to store
3those implements and that equipment.
4(2) “Hand
tools owned and supplied by an employee” means
5only those hand tools that are either owned by the employee prior
6to the employment orbegin insert areend insert acquired and paid for by the employee
7during the employment, that the employee will continue to own
8after termination of the employment.
9(3) “Employee” meansbegin delete anyend deletebegin insert anend insert individual who is employed by
10an employer that directly or indirectly supervises that person and
11exercises control over the wages and working conditions of
12individual workers. “Employee” does not include a self-employed
13individual or an independent contractor.
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