Bill Text: CA SB27 | 2009-2010 | Regular Session | Chaptered
Bill Title: Local agencies: sales and use tax: reallocation.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2009-06-05 - Chaptered by Secretary of State. Chapter 4, Statutes of 2009. [SB27 Detail]
Download: California-2009-SB27-Chaptered.html
BILL NUMBER: SB 27 CHAPTERED
BILL TEXT
CHAPTER 4
FILED WITH SECRETARY OF STATE JUNE 5, 2009
APPROVED BY GOVERNOR JUNE 5, 2009
PASSED THE SENATE MARCH 12, 2009
PASSED THE ASSEMBLY MAY 28, 2009
AMENDED IN SENATE FEBRUARY 23, 2009
INTRODUCED BY Senator Hancock
(Coauthors: Assembly Members Torlakson and Salas)
DECEMBER 2, 2008
An act to add Section 53084.5 to the Government Code, relating to
local government, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 27, Hancock. Local agencies: sales and use tax: reallocation.
Existing law prohibits a redevelopment agency or a local agency,
as defined, from providing any form of financial assistance to a
vehicle dealer or big box retailer, or a business entity that sells
or leases land to a vehicle dealer or big box retailer, that is
relocating from the territorial jurisdiction of one community or
local agency to the territorial jurisdiction of another community or
local agency, as specified.
This bill would, on or after the date this act takes effect,
prohibit a local agency from entering into any form of agreement with
a retailer, a consultant or agent representing a retailer, or any
other person that would involve the payment, transfer, diversion, or
rebate of any amount of Bradley-Burns local tax proceeds for any
purpose if the agreement results in a reduction in the amount of
revenue that is received by another local agency from a retailer that
is located within the territorial jurisdiction of that other local
agency, and the retailer continues to maintain a physical presence
within the territorial jurisdiction of that other local agency, with
specified exceptions.
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. In enacting this measure, the Legislature finds and
declares that the facts associated with, and damages caused to,
cities by the economic development agreements entered into between
the cities and consulting companies, referred to as developers, that
provide, under specified circumstances, for the disbursement to the
consulting company of an amount of the local sales tax attributable
to sales made within those cities by new retailers over a period of
time, has resulted in an unjust reallocation of local Bradley-Burns
sales and use taxes away from several cities.
SEC. 2. Section 53084.5 is added to the Government Code, to read:
53084.5. (a) On or after the date the act adding this section
takes effect, a local agency shall not enter into any form of
agreement that would result, directly or indirectly, in the payment,
transfer, diversion, or rebate of any tax revenue resulting from the
imposition of a sales and use tax under the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)
of Division 2 of the Revenue and Taxation Code) to any person for any
purpose when both of the following apply:
(1) The agreement results in a reduction in the amount of revenue
that is received by another local agency from a retailer that is
located within the territorial jurisdiction of that other local
agency from the tax proceeds collected under the Bradley-Burns
Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with
Section 7200) of Division 2 of the Revenue and Taxation Code). This
subdivision shall not apply to a reduction in the use tax proceeds
that are distributed to that other local agency through one or more
countywide pools.
(2) The retailer continues to maintain a physical presence within
the territorial jurisdiction of that other local agency. This
subdivision shall not apply if the retailer has expanded its
operations into another jurisdiction with the result that the
retailer is conducting a comparable operation within the jurisdiction
of both local agencies.
(b) For the purposes of this section, the following definitions
have the following meanings:
(1) "Local agency" means a chartered or general law city, a
chartered or general law county, or a city and county.
(2) "Retailer" means a retailer as defined by Section 6015 of the
Revenue and Taxation Code.
(3) "Physical presence" means the lease or ownership of any real
property for the purpose of carrying on business operations.
(c) This section shall not apply to local tax proceeds provided by
a local agency to a retailer if the funds are used to reimburse the
retailer for the construction of public works improvements that serve
all or a portion of the territorial jurisdiction of the local
agency.
(d) This section shall not apply to an agreement to pay or rebate
any tax revenue resulting from the imposition of a sales and use tax
under the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5
(commencing with Section 7200) of Division 2 of the Revenue and
Taxation Code) relating to a buying company. "Buying company" means,
and is limited to, a legal entity that is separate from another legal
entity that owns, controls, or is otherwise related to, the buying
company and which has been created for the purpose of performing
administrative functions, including acquiring goods and services for
the other entity, as defined by the State Board of Equalization, and
meets requirements of a buying company under Sections 6066 to 6075,
inclusive, of the Revenue and Taxation Code, and the regulations
adopted pursuant to those sections.
(e) This section shall not apply to any agreement by a local
agency to pay or rebate any use tax revenue resulting from the
imposition of a sales and use tax under the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)
of Division 2 of the Revenue and Taxation Code) relating to a use tax
direct payment permit issued under Section 7051.3 of the Revenue and
Taxation Code.
(f) Nothing in this section shall be interpreted to limit the
ability of a local agency to contract with or otherwise enter into an
agreement pursuant to subdivision (b) of Section 7056 of the Revenue
and Taxation Code.
SEC. 3. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to make the necessary statutory changes to address the
unjust reallocation of local sales and use taxes away from several
cities, at the earliest possible time, it is necessary that this act
take effect immediately.
