Bill Text: CA SB531 | 2019-2020 | Regular Session | Amended
Bill Title: Local agencies: retailers.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Vetoed) 2020-01-13 - Veto sustained. [SB531 Detail]
Download: California-2019-SB531-Amended.html
Amended
IN
Senate
March 25, 2019 |
Senate Bill | No. 531 |
Introduced by Senator Glazer |
February 21, 2019 |
LEGISLATIVE COUNSEL'S DIGEST
Existing sales and use tax laws impose taxes on retailers measured by 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 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. That 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 those taxes to the city
or county.
This bill would state the Legislature’s intent to enact legislation that would prohibit a local government from agreeing to offer economic incentives in an amount measured by local sales tax revenue to a private corporation in exchange for the corporation locating within the local government’s jurisdiction.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 53084.5 of the Government Code is amended to read:53084.5.
(a) On or after January 1, 2016, 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:(c)
(d)
(e)
(f)
SEC. 2.
The Legislature finds and declares that Section 1 of this act amending Section 53084.5 of the Government Code addresses a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 of this act applies to all cities, including charter cities.It is the intent of the Legislature to enact legislation that would prohibit a local government from agreeing to offer economic incentives in an amount measured by local sales tax revenue to a private corporation in exchange for the corporation locating within the local government’s jurisdiction.