Bill Text: CA AB2365 | 2015-2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Sales and use taxes: exclusion: pawnbrokers: transfer of vested property.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Vetoed) 2016-08-30 - Consideration of Governor's veto pending. [AB2365 Detail]

Download: California-2015-AB2365-Introduced.html

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BILL NUMBER: AB 2365	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gipson
   (Coauthors: Assembly Members Brough and Wagner)

                        FEBRUARY 18, 2016

   An act relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2365, as introduced, Gipson. Sales and use tax exemption.
   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.
Existing law provides various exemptions from the taxes imposed by
those laws.
   Existing law regulates pawnbrokers by, among other things,
requiring every loan made by a pawnbroker for which goods are
received in pledge as security to be evidenced by a written contract,
a copy of which is required to be furnished to the pledgor. Existing
law requires the loan period of a loan contract to be no less than 4
months, and requires the loan contract to set forth the loan period,
the date on which the loan is due and payable, and to clearly inform
the pledgor of his or her right to redeem the pledge during the loan
period. Existing law provides procedures by which a pawnbroker may
foreclose on pledged property.
   This bill would declare the intent of the Legislature to enact
legislation that would provide an exemption from sales and use taxes
if an original pledgor reacquires from a pawnbroker tangible personal
property he or she pledged to the pawnbroker as security for a loan
within six months after title to the property is vested in the
pawnbroker.
   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.  It is the intent of the Legislature to enact
legislation that would provide an exemption from sales and use taxes
if an original pledgor reacquires from a pawnbroker tangible personal
property he or she pledged to the pawnbroker as security for a loan
within six months after title to the property is vested in the
pawnbroker.