SB 516

Bill Subjects

Abstract

The Sales and Use Tax Law imposes a tax on the gross receipts from the sale of tangible personal property sold at retail in this state, or on the sales price of tangible personal property purchased from a retailer for the storage, use, or other consumption of that property in this state. That law defines the terms "gross receipts" and "sales price." This bill would, until January 1, 2017, provide, for purposes of that law, that the terms "gross receipts" and "sales price" do not include the value of a motorcycle traded in for a new motorcycle, if the value of the trade-in motorcycle is separately stated on the new motorcycle invoice or bill of sale or similar document provided to the purchaser. The Bradley-Burns Uniform 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, and existing law authorizes districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law which conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are incorporated into these laws. Section 2230 of the Revenue and Taxation Code provides that the state will reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions. This bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse counties and cities for sales and use tax revenues lost by them pursuant to this bill. This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.