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

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

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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

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BILL NUMBER: AB 1474	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 2, 2009

INTRODUCED BY   Assembly Member Cook

                        FEBRUARY 27, 2009

    An act to amend Section 18025 of the Health and Safety
Code, relating to mobilehomes.   An act to add Section
6376.4 to the Revenue and Taxation Code, relating to taxation, to
take effect immediately, tax levy. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1474, as amended, Cook.  Mobilehomes: standards.
  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, 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.  
   This bill would take effect immediately as a tax levy. 

   Existing law prohibits, unless otherwise specified, a person from
selling, offering for sale, renting, or leasing within the state, any
manufactured home, mobilehome, commercial coach, or special purpose
commercial coach manufactured after September 1, 1958, containing
structural, fire safety, plumbing, heat-producing, or electrical
systems and equipment unless the systems and equipment meet certain
requirements of the Department of Housing and Community Development.
 
   This bill would make a technical, nonsubstantive change to this
provision of law. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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.  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 of the following conditions
are met:
   (a) The mobilehome is sold by a retailer to a purchaser under the
circumstances described in Section 6012.8 or 6012.9.
   (b) 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. 
   SEC. 2.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  
  SECTION 1.    Section 18025 of the Health and
Safety Code is amended to read:
   18025.  (a)  Except as provided in subdivisions (b) and (c), it is
unlawful for any person to sell, offer for sale, rent, or lease in
this state, any manufactured home or any mobilehome, commercial
coach, or special purpose commercial coach manufactured after
September 1, 1958, containing structural, fire safety, plumbing,
heat-producing, or electrical systems and equipment unless the
systems and equipment meet the requirements of the department for
those systems and that equipment and the installation of those
systems and that equipment. The department may adopt rules and
regulations that are reasonably consistent with recognized and
accepted principles for structural, fire safety, plumbing,
heat-producing, and electrical systems and equipment and
installations, respectively, to protect the health and safety of the
people of this state from dangers inherent in the use of substandard
and unsafe structural, fire safety, plumbing, heat-producing, and
electrical systems, equipment and installations.
   (b)  All manufactured homes and mobilehomes manufactured on or
after June 15, 1976, shall comply with the National Manufactured
Housing Construction and Safety Standards Act of 1974 (42 U.S.C. Sec.
5401 et seq.).
   (c)  The sale of used manufactured homes and mobilehomes by an
agent licensed pursuant to this part shall be subject to Section
18046.