Bill Text: CA SB533 | 2015-2016 | Regular Session | Chaptered
Bill Title: Cities and counties: sales and use tax agreements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2015-10-09 - Chaptered by Secretary of State. Chapter 717, Statutes of 2015. [SB533 Detail]
Download: California-2015-SB533-Chaptered.html
BILL NUMBER: SB 533 CHAPTERED
BILL TEXT
CHAPTER 717
FILED WITH SECRETARY OF STATE OCTOBER 9, 2015
APPROVED BY GOVERNOR OCTOBER 9, 2015
PASSED THE SENATE SEPTEMBER 10, 2015
PASSED THE ASSEMBLY AUGUST 31, 2015
AMENDED IN ASSEMBLY JULY 6, 2015
AMENDED IN ASSEMBLY JUNE 10, 2015
INTRODUCED BY Senator Pan
FEBRUARY 26, 2015
An act to repeal and add Section 53084.5 of the Government Code,
relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
SB 533, Pan. Cities and counties: sales and use tax agreements.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes
counties and cities to impose local sales and use taxes in conformity
with the Sales and Use Tax Law. That 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 prohibits a local agency, as defined to mean all
cities and counties, from entering into any form of agreement with
any other person that would involve the payment, transfer, diversion,
or rebate of any amount of Bradley-Burns local tax revenues 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, including an exception for an agreement to pay
or rebate any Bradley-Burns local tax revenue relating to a buying
company, as defined.
This bill would repeal that prohibition and instead prohibit, on
or after January 1, 2016, a local agency from entering into any form
of agreement that would result, directly or indirectly, in the
payment, transfer, diversion, or rebate of Bradley-Burns local tax
revenues to any person, as defined, for any purpose, if the agreement
results in a reduction in the amount of Bradley-Burns local tax
revenues that, in the absence of the agreement, would be received by
another 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 also impose
specified notification and reporting requirements on a local agency
entering into an agreement that results in a reduction of the amount
of Bradley-Burns local tax revenues, that in the absence of the
agreement, would be received by another local agency, prior to the
ratification of that agreement. This bill would also require any
local agency to post such an agreement on its Internet Web site,
including any agreements entered into prior to January 1, 2016, that
are still in effect. By imposing these notification and reporting
requirements on a local agency, this bill would impose a
state-mandated local program. This bill would exclude from these
provisions any mutual tax revenue sharing agreement between local
agencies to pay, transfer, or divert Bradley-Burns local tax revenues
to another local agency, and where the agreement would not result,
directly or indirectly, in the payment, transfer, diversion, or
rebate of those tax revenues to a retailer.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 53084.5 of the Government Code is repealed.
SEC. 2. Section 53084.5 is added to the Government Code, 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:
(1) The agreement results in a reduction in the amount of revenue
under the Bradley-Burns Uniform Local Sales and Use Tax Law that, in
the absence of the agreement, would be received by another local
agency.
(2) The retailer continues to maintain a physical presence within
the territorial jurisdiction of that other local agency.
(b) (1) A local agency entering into an agreement that results in
a reduction of the amount of revenue under the Bradley-Burns Uniform
Local Sales and Use Tax Law that, in the absence of the agreement,
would be received by another local agency shall post the proposed
agreement on its Internet Web site for at least 30 days prior to
ratification or approval of that agreement by its governing body.
(2) A local agency entering into an agreement that results in a
reduction of the amount of revenue under the Bradley-Burns Uniform
Local Sales and Use Tax Law that, in the absence of the agreement,
would be received by another local agency shall notify the other
local agency by certified mail addressed to the attention of the
chief executive of that other local agency at least 60 days prior to
ratification or approval of that agreement by its governing body.
(3) A local agency shall post any agreement on its Internet Web
site it has entered into that results in a reduction of the amount of
revenue under the Bradley-Burns Uniform Local Sales and Use Tax Law
that, in the absence of the agreement, would be received by another
local agency, including any agreements entered into prior to January
1, 2016, that are still in effect on and after that date.
(c) For the purposes of this section, the following terms 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, of this state.
(2) "Person" means a person as defined in Section 6005 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.
(4) "Retailer" means a retailer as defined by Section 6015 of the
Revenue and Taxation Code.
(d) 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 use tax under the Bradley-Burns Uniform Local Sales
and Use Tax Law relating to a use tax direct payment permit issued
under Section 7051.3 of the Revenue and Taxation Code.
(e) This section shall not 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.
(f) This section shall not apply to any mutual tax revenue sharing
agreement between local agencies to pay, transfer, or divert tax
revenues that would be received by a local agency resulting from the
imposition of a sales and use tax under the Bradley-Burns Uniform
Local Sales and Use Tax Law to another local agency, and where the
agreement would not result, directly or indirectly, in the payment,
transfer, diversion, or rebate of those tax revenues to a retailer.
SEC. 3. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
