Bill Text: CA AB2716 | 2013-2014 | Regular Session | Introduced

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Bill Title: Sales and use taxes: resale certificate.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-02-24 - Read first time. [AB2716 Detail]

Download: California-2013-AB2716-Introduced.html

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BILL NUMBER: AB 2716	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Wieckowski

                        FEBRUARY 21, 2014

   An act to amend Section 6244 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2716, as introduced, Wieckowski. Sales and use taxes: resale
certificate.
   Under the Sales and Use Tax Law, if a purchaser who gives a resale
certificate or purchases property for the purpose of reselling it
makes any storage or use of the property other than retention,
demonstration, or display while holding it for sale in the regular
course of business, the storage or use is taxable as of the time the
property is first so stored or used.
   This bill would make technical, nonsubstantive changes to that
provision.
   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 6244 of the Revenue and Taxation Code is
amended to read:
   6244.  (a) If a purchaser who gives a resale certificate or
purchases property for the purpose of reselling it makes any storage
or use of the property other than retention, demonstration, or
display while holding it for sale in the regular course of business,
the storage or use is taxable as of the time the property is first
 so  stored or used.
   (b) If  such   the  use is limited to
the loan of the property to customers as an accommodation while
awaiting delivery of property purchased or leased from the lender or
while property is being repaired for customers by the lender, the
measure of the tax is the fair rental value of the property for the
duration of each loan  so  made.
   (c) If the property is used frequently for purposes of
demonstration or display while holding it for sale in the regular
course of business and is used partly for other purposes, the measure
of the tax is the fair rental value of the property for the period
of  such   the  other use or uses.
   (d) If the property is mobile transportation equipment as defined
in Section 6023, and the use is limited to leasing the equipment, the
purchaser may elect to pay his use tax measured by the fair rental
value, if the election is made on or before the due date of a return
for the period in which the equipment is first leased. The election
must be made by reporting tax measured by the fair rental value on
the return for that period, or in  such  other
manner as the board may prescribe. Tax must thereafter be paid with
the return for each reporting period, measured by the fair rental
value, whether the equipment is within or without the state. The
election may not be revoked with respect to the equipment as to which
it is made.
   (e) As used in subdivision (d), the term "fair rental value" means
the rentals required by the purchaser under the lease except where
the board determines that  such   the 
rentals are nominal. The term shall not include any reimbursement
payments made by the lessee to the purchaser for such use tax.