SB 640

Bill Subjects

Abstract

Existing sales and use tax laws impose a tax on retailers measured by the 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. This bill would make legislative findings regarding responding to pending proposals for federal tax reform and California's tax climate and would state that the intent of the bill is to make 3 changes to taxation within the state, including broadening the tax base by imposing a modest sales tax on services. This bill would also establish the Retail Sales Tax on Services Fund in the State Treasury and state the intent of the Legislature that moneys in the fund would be appropriated to, among other purposes, provide tax relief to middle- and low-income Californians to offset the effect of a sales tax on services.