Bill Text: CA AB893 | 2013-2014 | Regular Session | Introduced

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

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Bill Title: Income taxes: deductions: Mello-Roos.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB893 Detail]

Download: California-2013-AB893-Introduced.html

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BILL NUMBER: AB 893	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Daly

                        FEBRUARY 22, 2013

   An act to amend Section 6006.3 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 893, as introduced, Daly. Sales and use taxes: lease:
definition.
   The Sales and Use Tax Law defines a "lease" for purposes of
application of that law.
   This bill would make technical, nonsubstantive changes to that
definition.
   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.  Section 6006.3 of the Revenue and Taxation Code is
amended to read:
   6006.3.  "Lease" includes rental, hire and license. "Lease" does
not include a use of tangible personal property for  a period
of  less than one day for a charge of less than twenty
dollars ($20) when the privilege to use the property is restricted to
 its  use  thereof  on the premises or at
a business location of the grantor of the privilege.  Where
  If  a contract designated as a lease binds the
lessee for a fixed term and the lessee is to obtain title at the end
of the term upon the completion of the required payment  , 
or has the option at that time to purchase the property for a nominal
amount, the contract shall be regarded as a sale under a security
agreement from its inception and not as a lease.  In the case
of   For  a contract designated as a lease with
any state or local governmental body, or any agency or
instrumentality thereof, the lessee shall be treated as bound for a
fixed term notwithstanding any right of the lessee to terminate the
contract in the event that sufficient funds are not appropriated to
pay amounts due under the contract.