Bill Text: CA SB1086 | 2011-2012 | Regular Session | Amended

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Bill Title: Sales and use taxes: wireless communication devices:

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2012-05-09 - Set, first hearing. Failed passage in committee. (Ayes 3. Noes 6. Page 3457.) Reconsideration granted. [SB1086 Detail]

Download: California-2011-SB1086-Amended.html

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BILL NUMBER: SB 1086	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 9, 2012

INTRODUCED BY   Senator Dutton
    (   Principal coauthor:   Assembly Member
  Garrick   ) 

                        FEBRUARY 15, 2012

   An act to add Section 6012.4 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1086, as amended, Dutton. Sales and use taxes: wireless
communication devices: bundled transactions.
   Existing sales and use tax  law   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. Under existing sales and use tax
regulations, gross receipts from a retail sale of a wireless
telecommunication device sold in a bundled transaction with wireless
telecommunication service are generally equal to the amount of the
unbundled sales price of the wireless telecommunication device.
   This bill would, instead, limit the gross receipts from a retail
sale of a wireless telecommunication device sold in a bundled
transaction with wireless telecommunication service to the bundled
sales price of the wireless telecommunication device.
   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, as specified, 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 any 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, but its
operative date would depend on its effective date.
   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 6012.4 is added to the Revenue and Taxation
Code, to read:
   6012.4.  (a) Notwithstanding Sections 6011 and 6012, "gross
receipts" and "sales price" from the retail sale of a wireless
 communication   telecommunication  device
shall be limited to the amount charged for the sale of the wireless
telecommunication device when that device is sold in a bundled
transaction.
   (b) "Bundled transaction" means a retail sale of a wireless
telecommunication device that contractually requires the retailer's
customer to activate or contract with a wireless telecommunications
service provider for utility service for a period greater than one
month as a condition of that sale.
   (c) "Wireless telecommunication device" means a portable
communication device, such as a wireless telephone or pager, 
requiring   that requires  activation by a
wireless telecommunications service provider or seller of utility
services in order to send, receive, or send and receive transmissions
via a network of wireless transmitters throughout multiple service
areas, or otherwise. The term includes devices based on analog
technology and devices based on digital technology.
   (d) "Wireless telecommunications service provider" means a utility
regulated by the Public Utilities Commission or Federal
Communication Commission and that offers or provides wireless
communication or paging services.
  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. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
However, the provisions of this act shall become operative on the
first day of the first calendar quarter commencing more than 90 days
after the effective date of this act.