Bill Text: CA SB1466 | 2017-2018 | Regular Session | Amended
Bill Title: Local sales taxes: online sales: place of delivery.
Spectrum: Slight Partisan Bill (Democrat 4-2)
Status: (Introduced - Dead) 2018-04-11 - April 18 set for first hearing canceled at the request of author. [SB1466 Detail]
Download: California-2017-SB1466-Amended.html
|
Amended
IN
Senate
April 11, 2018 |
|
Amended
IN
Senate
March 22, 2018 |
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Senate Bill | No. 1466 |
| Introduced by Senator Glazer (Coauthors: Senators |
February 16, 2018 |
An act to amend Section 7205 of the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1466, as amended, Glazer.
Local sales taxes: online sales: place of delivery.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose a local sales and use tax in accordance with that law for tangible personal property sold at retail in the county or city, or purchased for storage, use, or other consumption in the county or city. Existing law requires the city tax rate to be credited against the county rate so that the combined rate does not exceed 1.25%. Existing law requires the county or city to contract with the California Department of Tax and Fee Administration for the administration of the taxes and requires the department to transmit that tax to the city or county.
The Bradley-Burns Uniform Local Sales and Use Tax Law provides that for the purpose of a local sales tax adopted pursuant to that law, all retail sales are consummated at the place of business of the retailer
unless otherwise specified. Existing law provides that these local sales taxes are allocated to the place where the sale is deemed to take place.
This bill would instead provide that, in the case of a sale of tangible personal property by a qualified retailer, as defined, that is transacted online, the place at which the retail sale of that tangible personal property is consummated for the purpose of a local sales tax imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law is the point of the delivery of that tangible personal property to the purchaser’s address or any other address designated by the purchaser.
The California Constitution prohibits the Legislature from enacting a statute that would change the method of distributing revenues derived under the Bradley-Burns Uniform Local Sales and Use Tax Law, as that law read on November 3, 2004, except the Legislature may change that law by statute to
allow the state to participate in an interstate compact or to comply with federal law.
This bill would become operative only if Senate Constitutional Amendment ____ 20 of the 2017–18 Regular Session is approved by the voters and, in that event, would become operative on January 1, 2020.
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 7205 of the Revenue and Taxation Code is amended to read:7205.
(a) For the purpose of a sales tax imposed by an ordinance adopted pursuant to this part, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his or her agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from those sales shall include delivery charges, when those charges are subject to the state sales and use tax, regardless of the place to which delivery is made.(b) (1) In the event a retailer has no permanent place of business in the state or has more than one place
of business, the place or places at which the retail sales are consummated for the purpose of a sales tax imposed by an ordinance adopted pursuant to this part shall, subject to paragraph (2), be determined under rules and regulations to be prescribed and adopted by the board.
(2) In the case of a sale of jet fuel, the place at which the retail sale of that jet fuel is consummated for the purpose of a sales tax imposed by an ordinance adopted pursuant to this part is the point of the delivery of that jet fuel to the aircraft.
(3) (A) In Notwithstanding any other law, in the case of a sale of tangible
personal property by a qualified retailer that is transacted online, the place at which the retail sale of that tangible personal property is consummated for the purpose of a sales tax imposed by an ordinance adopted pursuant to this part is the point of the delivery of that tangible personal property to the purchaser’s address or any other address designated by the purchaser.
(B) A sale is “transacted online” if all of the following conditions are met:
(i) The purchaser’s order and payment for the sale and purchase of tangible personal property is transacted and completed on an Internet Web site or web-based application.
(ii) The purchaser’s order and payment for the sale and purchase of tangible personal property
is not initiated by the qualified retailer using the qualified retailer’s equipment at the qualified retailer’s place of business.
(iii) The purchaser does not receive the tangible personal property at the qualified retailer’s place of business or at another location designated by the qualified retailer.
(C) “Qualified retailer” means a retailer whose total cumulative gross receipts from all of the retailer’s sales, within the preceding 12 months, of tangible personal property transacted online exceeds one hundred thousand dollars ($100,000).
