Bill Text: CA AB798 | 2013-2014 | Regular Session | Introduced
Bill Title: Sales and use taxes: occasional barterer.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB798 Detail]
Download: California-2013-AB798-Introduced.html
BILL NUMBER: AB 798 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Wagner
FEBRUARY 21, 2013
An act to amend Section 6006.5, and to repeal Section 6019, of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 798, as introduced, Wagner. Sales and use taxes: occasional
barterer.
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, as specified.
Existing law also exempts from tax, the gross receipts from
occasional sales of tangible personal property other than vehicles,
vessels, or aircraft.
This bill would repeal the provision considering a person making
more than 2 retail sales in a 12-month period a retailer and would
include in the definition of an occasional sale, the sale of tangible
personal property the gross receipts of which are $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, provided that the consideration for those
sales is other than money.
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 to state sales and use taxes 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:
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: is
(1) The sale 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 and the consideration
for the sale is other than money.
(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, and the consideration for the
sale is other than money.
(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.
SEC. 2. Section 6019 of the Revenue and Taxation Code is repealed.
6019. Every individual, firm, copartnership, joint venture,
trust, business trust, syndicate, association or corporation making
more than two 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.
SEC. 3. 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.
SEC. 4. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
