SB 1086

Bill Subjects

Sales And Use Tax Law Gross Receipts Motor Vehicle Fuel Tax Sales Price

Abstract

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 Sales and Use Tax Law defines the term "gross receipts" for these purposes to mean the total amount of the sale or lease or rental price of the retail sales of retailers, valued in money, whether received in money or otherwise, as specified, unless an exclusion applies. The Sales and Use Tax Law defines the term "sales price" for these purposes to mean the total amount for which tangible personal property is sold or leased or rented, valued in money, whether received in money or otherwise, as specified, unless an exclusion applies. The Motor Vehicle Fuel Tax Law, administered by the California Department of Tax and Fee Administration, imposes a tax upon each gallon of motor vehicle fuel removed from a refinery or terminal rack in this state, entered into this state, or sold in this state, at a specified rate per gallon. Existing sales and use tax laws provide a partial exemption from the taxes imposed by those laws for motor vehicle fuel that is subject to the taxes imposed by the Motor Vehicle Fuel Tax Law. This bill, beginning January 1, 2025, would exclude from the terms "gross receipts" and "sales price" under the Sales and Use Tax Law the amount of any motor vehicle fuel tax imposed pursuant to the Motor Vehicle Fuel Tax Law. This bill would take effect immediately as a tax levy.