Bill Text: CA AB829 | 2009-2010 | Regular Session | Introduced

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

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Bill Title: Sales and use tax: exemption: manufacturing equipment.

Spectrum: Slight Partisan Bill (Democrat 8-3)

Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB829 Detail]

Download: California-2009-AB829-Introduced.html

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BILL NUMBER: AB 829	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Caballero

                        FEBRUARY 26, 2009

   An act relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 829, as introduced, Caballero. Sales and use taxes: exemption:
manufacturing equipment.
   The Sales and Use Tax Law imposes a tax on retailers measured by
the gross receipts from the sale of tangible personal property sold
at retail in this state, and 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,
and provides various exemptions from the taxes imposed by that law.
   This bill would declare the intent of the Legislature to exempt
from those taxes the sale of, and the storage, use, or other
consumption of, manufacturing equipment used in the manufacturing
process, as specified.
   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.  It is the intent of the Legislature to enact
legislation that would exempt from specified state sales and use
taxes, the sale to, or use by, a manufacturer of tangible personal
property purchased for use in manufacturing or otherwise processing
property, or by a contractor performing a construction contract for
the manufacturer, or by a person purchasing the property to use
during the research and development process on qualified research. It
is further the intent of the Legislature to require taxpayers with
annual revenues of more than one million dollars ($1,000,000) to
postpone the benefits of the exemption until the first fiscal year in
which the state budget deficit is eliminated or a specified date.