Bill Text: CA AB799 | 2013-2014 | Regular Session | Amended
Bill Title: Sales and use tax: retailer.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB799 Detail]
Download: California-2013-AB799-Amended.html
BILL NUMBER: AB 799 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 13, 2013
INTRODUCED BY Assembly Member Wagner
FEBRUARY 21, 2013
An act to amend Section 6006.5, and to repeal Section
6019, 6019 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: occasional
sales. retailer.
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. 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
instead consider a person making more than
2 12 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 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
.
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:
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.
SEC. 2. Section 6019 of the Revenue and
Taxation Code is repealed.
SECTION 1. Section 6019 of the Revenue
and Taxation Code is amended to read:
6019. Every individual, firm, copartnership, joint venture,
trust, business trust, syndicate, association or corporation making
more than two 12 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. SEC. 2. 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. SEC. 3. This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.
