Bill Text: CA AB2938 | 2017-2018 | 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: bicycles: City of Santa Monica.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2018-09-14 - Chaptered by Secretary of State - Chapter 397, Statutes of 2018. [AB2938 Detail]

Download: California-2017-AB2938-Amended.html

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Amended  IN  Assembly  April 10, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill

No. 2938

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Introduced by Assembly Member Bloom

February 16, 2018

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An act to add and repeal Section 6902.7 6413 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL'S DIGEST

AB 2938, as amended, Bloom. Sales and use taxes: credit: Use taxes: exemption: bicycles: City of Santa Monica.

Existing sales and use tax 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, measured by sales price.

The Sales and Use Tax Law defines a sale to include the lease of tangible personal property for consideration, except for tangible personal property leased in substantially the same form as acquired by the lessor, as to which the lessor has paid sales tax reimbursement or has paid use tax measured by the purchase price of the property. Existing law requires, if tax has not been paid based on the purchase price, tax to be reported based on rental receipts.

This bill would, until January 1, 2020, allow the City of Santa Monica to apply as a credit the amount the City of Santa Monica paid to the California Department of Tax and Fee Administration for the taxes imposed pursuant to this part, as measured by rental receipts, for the lease or rental of bicycles as part of a publicly shared regional bicycle system within the County of Los Angeles against an amount equal to what the City of Santa Monica would have paid as sales tax reimbursement or use tax for the taxes imposed pursuant to this part on the sale of, or on the storage, use, or other consumption in this state of, those bicycles, as measured by the sales or purchase price, as provided.

The Sales and Use Tax Law imposes use taxes 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, presumes tangible personal property purchased outside the state that is stored, used, or consumed in this state is purchased for use in this state, and excludes from use taxes, specified tangible personal property purchased and used for specified purposes.

This bill, on or after its effective date and until January 1, 2020, would exempt from use taxes the storage, use, or other consumption in this state of specified bicycles purchased by the City of Santa Monica.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Santa Monica.

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 laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws.

Existing law requires the state to 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 use tax revenues lost by them pursuant to this bill.

This bill would take effect immediately as a tax levy.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.Section 6902.7 is added to the Revenue and Taxation Code, to read:

6902.7.

(a)The City of Santa Monica may apply as a credit the amount the City of Santa Monica paid to the California Department of Tax and Fee Administration for the taxes imposed pursuant to this part, as measured by rental receipts, for the lease or rental of bicycles as part of a publicly shared regional bicycle system within the County of Los Angeles against an amount equal to what the City of Santa Monica would have paid as sales tax reimbursement or use tax for the taxes imposed pursuant to this part on the sale of, or on the storage, use, or other consumption in this state of, those bicycles, as measured by the sales or purchase price.

(b)(1)On and after the effective date of the act adding this section, the City of Santa Monica shall be deemed to have paid as sales tax reimbursement or use tax for the taxes imposed pursuant to this part on the sale of, or on the storage, use, or other consumption in this state of, those bicycles purchased by the City of Santa Monica before the effective date of the act adding this section.

(2)This section shall only apply to bicycles purchased by the City of Santa Monica before the effective date of the act adding this section.

(c)This section shall remain in effect only until January 1, 2020, and as of that date is repealed.

SECTION 1.

 Section 6413 is added to the Revenue and Taxation Code, to read:

6413.

 (a) On or after the effective date of the act adding this section, the storage, use, or other consumption in this state of qualified tangible personal property purchased by the City of Santa Monica is exempt from use tax.

(b) For purposes of this section, “qualified tangible personal property” means the 500 bicycles purchased by the City of Santa Monica in calendar year 2015.

(c) This section shall remain in effect only until January 1, 2020, and as of that date is repealed.

SEC. 2.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique needs of the City of Santa Monica in order to adapt to the rapidly changing bike share landscape and to pursue system expansions, improvements, and integrations.

SEC. 3.

 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.SEC. 4.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.