Bill Text: CA AB327 | 2017-2018 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: South Coast Air Quality Management District: fleets.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2018-07-03 - In committee: Set, first hearing. Held without recommendation. [AB327 Detail]
Download: California-2017-AB327-Amended.html
any local agency cities and counties for any sales and use tax revenues lost by it them under this act.
Bill Title: South Coast Air Quality Management District: fleets.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2018-07-03 - In committee: Set, first hearing. Held without recommendation. [AB327 Detail]
Download: California-2017-AB327-Amended.html
|
Amended
IN
Assembly
March 21, 2017 |
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Assembly Bill | No. 327 |
| Introduced by Assembly Member Gipson (Coauthor: Assembly Member Brough) |
February 07, 2017 |
An act to add and repeal Section 6010.15 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 327, as amended, Gipson.
Sales and use taxes: exclusion: pawnbrokers: transfer of vested property.
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. Existing law defines “sale” and “purchase” for these purposes and provides certain exclusions from those definitions.
Existing law regulates pawnbrokers by, among other things, requiring every loan made by a pawnbroker for which goods are received in pledge as security to be evidenced by a written contract, a copy of which is required to be furnished to the pledgor. Existing law requires the loan period of a loan contract to be no less than 4 months, and requires the loan contract to set forth
the loan period, the date on which the loan is due and payable, and to clearly inform the pledgor of his or her right to redeem the pledge during the loan period. Existing law provides procedures by which a pawnbroker may become vested with the title to pledged property.
This bill, until January 1, 2022, would provide that “sale” and “purchase” do not include the transfer of vested property, as defined, by a pawnbroker to a person who pledged the property to the pawnbroker as security for a loan and from whom title transferred to the pawnbroker if specified requirements are met, thus excluding that transfer from imposition of sales and use tax.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities and counties
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 and counties 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,
these provisions, no appropriation is made and the state shall not reimburse any local agencies cities and counties for sales and 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: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 6010.15 is added to the Revenue and Taxation Code, to read:6010.15.
(a) “Sale” and “purchase” for the purposes of this part do not include the transfer of title to vested property by a pawnbroker to a person who pledged the property to the pawnbroker as security for a loan and from whom title to the property transferred to the pawnbroker pursuant to Section 21201 of the Financial Code, if all of the following requirements are met:(1) The transfer occurs no more than six months after title to the property transferred to the pawnbroker from the person pursuant to Section 21201 of the Financial Code.
(2) As consideration for the transfer of the
property, the person is required to pay the pawnbroker only the remaining unpaid balance of the amount borrowed under the loan loan, including accrued charges and interest, as of the date the pawnbroker becomes vested with title to the property, together with one of the following:
(A) For an original loan amount not exceeding two thousand four hundred ninety-nine dollars and ninety-nine cents ($2,499.99), charges and interest due allowable under the loan pursuant to Chapter 2 (commencing with Section
21200) of Division 8 of the Financial Code, from the date the pawnbroker is vested with title to the property to the date of the transfer to the person who pledged the property.
(B) For an original loan amount of two thousand five hundred dollars ($2,500) or more, charges and interest due in accordance with the last monthly contractual interest rate, from the date the pawnbroker is vested with title to the property until the date of the transfer to the person who pledged the property.
(3) The person has proof, such as a receipt or similar document provided to the purchaser, that the person originally paid sales tax on the item.
(b) As used in this section:
(1) “Pawnbroker” has the meaning described in Section 21000 of the Financial Code.
(2) “Vested property” has the meaning described in subdivision (b) of Section 21002 of the Financial Code.
(c) This section shall become inoperative and shall be repealed on January 1, 2022.
