Bill Text: CA AB1474 | 2009-2010 | Regular Session | Amended

California Assembly Bill 1474 (Prior Session Legislation)

Bill Title: Sales and use taxes: exemption: fixed price contract:

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1474 Detail]

Download: California-2009-AB1474-Amended.html

BILL NUMBER: AB 1474	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 26, 2009
	AMENDED IN ASSEMBLY  APRIL 2, 2009

INTRODUCED BY   Assembly Member Cook

                        FEBRUARY 27, 2009

   An act to add  Section 6376.4 to   and repeal
Section 6376.4 of  the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1474, as amended, Cook. Sales and use taxes: exemption: fixed
price contract: mobilehome.
   The Sales and Use Tax Law imposes a sales tax on a retailer
measured by the gross receipts from the retail sale in this state of
tangible personal property and a use tax 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 measured by sales price. Existing law increases the state
sales and use tax rate on the sale of, and on the storage, use, or
other consumption of, tangible personal property, by 1% to a rate of
71/4% from April 1, 2009, until July 1,  2012,  
2011,  as provided.
   The Sales and Use Tax law also provides that a person who is a
retailer of mobilehomes, including manufactured homes, who sells a
new mobilehome to a purchaser for occupancy as a residence shall pay
use tax at the time of its sale to the purchaser, measured by an
amount equal to 75% of the price the retailer paid for the new
mobilehome.
   This bill would provide that the 1% rate of tax increase does not
apply to the gross receipts from the sale of a new mobilehome, or the
sales price of a new mobilehome sold or stored, used, or otherwise
consumed in this state, if specified conditions are met. 
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 6376.4 is added to the Revenue and Taxation
Code, to read:
   6376.4.   (a)    There are exempted from the
taxes imposed pursuant to Sections 6051.7 and 6201.7 the gross
receipts from the sale of a new mobilehome, and the sales price of a
new mobilehome stored, used, or otherwise consumed in this state, if
 both   all  of the following conditions
are met: 
   (a) 
    (1)  The mobilehome is sold by a retailer to a purchaser
under the circumstances described in Section 6012.8 or 6012.9.

   (b) 
    (2)  The purchaser's contract for the purchase of the
new mobilehome from the retailer is entered into on or before
February 20, 2009, and the sale to the purchaser occurs on or after
April 1, 2009  , and before April 1, 2010  . 
   (3) The retailer certifies, under penalty of perjury, both of the
following:  
   (A) The mobilehome will be used by the purchaser as the purchaser'
s principal residence within the meaning of Section 121 of the
Internal Revenue Code.  
   (B) The retailer paid the tax imposed by Sections 6051.7 and
6201.7.  
   (b) The aggregate amount of refunds issued to all retailers for
purposes of this section shall not exceed two hundred thousand
dollars ($200,000).  
   (c) This section shall remain in effect only until April 1, 2010,
and as of that date is repealed. 
   SEC. 2.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution. 
   SEC. 2.   SEC. 3.   This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.