AB 737: Sales and use taxes: seller’s permit: determinations.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-03-26
Existing law requires every person who seeks to conduct business as a seller of tangible personal property within the state to file an application for a permit with the State Board of Equalization for each place of business, as provided. Existing law authorizes a city, county, or city and county to collect information from persons seeking to engage in the business of selling tangible personal property in that jurisdiction and requires that collected information to be transmitted to the board, as provided, to be used as the preliminary application for a sellers permit. Existing law requires the board to issue a determination regarding the issuance of a sellers permit, if a determination can be made based on the information submitted, within 30 days of receipt of the information.
This bill would increase the amount of time the board has to make that determination from 30 days to 35 days within receipt of the information.
Existing property tax law exempts from property taxation, property used for free public libraries and free museums.
This bill would make nonsubstantive changes to that provision.
Existing property tax law exempts from property taxation, property used for free public libraries and free museums.
This bill would make nonsubstantive changes to that provision.
(a)A city, county, or city and county may collect information from persons desiring to engage in business in that jurisdiction for the purposes of selling tangible personal property under this part and shall transmit that information to the board. The information shall be provided to the board in a format to be determined by the board after consulting with the League of California Cities and the California State Association of Counties.
(b)The information submitted to the board under subdivision (a) shall serve as all of the following:
(1)The preliminary application for a sellers permit.
(2)Notification to the board by the city, county, or city and county of a person desiring to engage in the business of selling of tangible personal property in that jurisdiction.
(3)Notice to the board for purposes of redistribution under Section 7209.
(c)The board shall issue a determination regarding issuance of a sellers permit and receipt of notification for purposes of paragraphs (2) and (3) of subdivision (b). The board shall provide a copy of that determination and receipt of notification to the city, county, or city and county from which the board has received information under subdivision (a). The board shall make its determination as follows:
(1)For persons for whom a determination can be made based on the information submitted, the determination shall be issued within 30 35 days of receipt of the information.
(2)For persons for whom additional information is required before a determination can be made, the determination shall be issued within 120 days of receipt of the information.
(d)The board shall, after consulting with the League of California Cities and the California State Association of Counties, adopt standardized data addressing and naming conventions that are compatible with local jurisdiction conventions for new registrants and, to the extent possible, for current accounts.
(e)A city, county, or city and county may not charge applicants a fee for collecting and transmitting information pursuant to this section.
SECTION 1.Section 202 of the Revenue and Taxation Code is amended to read:202.(a)The exemption of the following property is as specified in subdivisions (a), (b), (d), and (h) of Section 3 of Article XIII of the Constitution, except as otherwise provided in subdivision (a) of Section 11 thereof:
(1)Growing crops.
(2)Property used for public libraries and museums that are free.
(3)Property used exclusively for public schools, community colleges, state colleges, and state universities, including the University of California.
(4)Property belonging to this state, a county, or a city. Property belonging to the State Compensation Insurance Fund is not property belonging to this state.
(b)The exemption described in paragraph (3) of subdivision (a) shall apply to off-campus facilities owned or leased by an apprenticeship program sponsor, if such facilities are used exclusively by the public schools for classes of related and supplemental instruction for apprentices or trainees which are conducted by the public schools under Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.
(c)Without prejudice to the right to assert an exemption otherwise available under subdivision (a), (d), or (e) of Section 3 of Article XIII of the Constitution, a property tax under this division shall be imposed upon that portion of the bookstore property determined to be generating the unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, to the extent property is:
(1)Owned by an educational institution of collegiate grade or used by a nonprofit corporation operating a student bookstore affiliated with such an educational institution, and
(2)Is primarily devoted to bookstore use that produces income that is taxable as unrelated business taxable income.
This tax shall be determined by establishing a ratio of the unrelated business taxable income to the bookstores gross income as defined by the Internal Revenue Code. That percent shall be the maximum percentage of such bookstore property on which a property tax can be levied.
At the end of a fiscal year when unrelated business income has been generated, the nonprofit organization shall file with the assessor copies of the organizations most recent tax return filed with the Internal Revenue Service.
(a)The exemption of the following property is as specified in subdivisions (a), (b), (d), and (h) of Section 3 of Article XIII of the Constitution, except as otherwise provided in subdivision (a) of Section 11 thereof:
(1)Growing crops.
(2)Property used for free public libraries and free museums that are free.
(3)Property used exclusively for public schools, community colleges, state colleges, and state universities, including the University of California.
(4)Property belonging to this state, a county, or a city. Property belonging to the State Compensation Insurance Fund is not property belonging to this state.
(b)The exemption described in paragraph (3) of subdivision (a) shall apply to off-campus facilities owned or leased by an apprenticeship program sponsor, if such facilities are used exclusively by the public schools for classes of related and supplemental instruction for apprentices or trainees which are conducted by the public schools under Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.
(c)Without prejudice to the right to assert an exemption otherwise available under subdivision (a), (d), or (e) of Section 3 of Article XIII of the Constitution, a property tax under this division shall be imposed upon that portion of the bookstore property determined to be generating the unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, to the extent property is:
(1)Owned by an educational institution of collegiate grade or used by a nonprofit corporation operating a student bookstore affiliated with such an educational institution, and
(2)Is primarily devoted to bookstore use that produces income that is taxable as unrelated business taxable income.
This tax shall be determined by establishing a ratio of the unrelated business taxable income to the bookstores gross income as defined by the Internal Revenue Code. That percent shall be the maximum percentage of such bookstore property on which a property tax can be levied.
At the end of a fiscal year when unrelated business income has been generated, the nonprofit organization shall file with the assessor copies of the organizations most recent tax return filed with the Internal Revenue Service.
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Date
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Status
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| Feb 25, 2015 | Read first time. To print. |
| Feb 26, 2015 | From printer. May be heard in committee March 28. |
| Mar 26, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended. |
| Mar 26, 2015 | Referred to Com. on REV. & TAX. |
| Apr 6, 2015 | Re-referred to Com. on REV. & TAX. |
| Apr 20, 2015 | In committee: Hearing postponed by committee. |
| Apr 28, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (April 27). Re-referred to Com. on APPR. |
| Jan 31, 2016 | Died pursuant to Article IV, Sec. 10(c) of the Constitution. |
| Feb 1, 2016 | From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. |
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Date
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Description
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Location
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Votes
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| Apr 27, 2015 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Revenue and Taxation |
Passed |
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Positions by individuals are not included.
AB 737
Page 2
Date of Hearing: April 27, 2015
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Philip Ting, Chair
AB 737
(Roger Hernández) – As Amended March 26, 2015
Majority vote. Fiscal committee.
SUBJECT: Sales and use taxes: seller’s permit: determinations
SUMMARY: Extends the time necessary for the Board of Equalization (BOE) to issue a determination regarding the issuance of a seller's permit from 30 days to 35 days, as specified.
EXISTING LAW:
Provides that, a city, county, or city and county may collect information from persons who desire to engage in a business for the purpose of selling tangible personal property (TPP) within their jurisdiction.
Provides that, the city, county, or city and county will transmit the information collected from the person to the BOE, as specified.
Requires the BOE to issue a determination regarding the issuance of a seller's permit and receipt of notification. The BOE must provide a copy of the determination to the city, county, or city and county from which the BOE has received information.
Requires the BOE to make the determination as follows:
The determination shall be issued within 30 days of receipt of the information if the determination can be based on the information submitted; or,
The determination shall be issue within 120 of receipt of the information if additional information is required before determination can be made.
Allows a city, county, or city and county to charge applicants a fee for collecting and transmitting information
FISCAL EFFECT: Unknown
COMMENTS: Under existing law, when a person applies to the city or county for a sellers permit, information is collected and transmitted to the BOE for processing. The information is treated as a preliminary application for the seller's permit. If a determination can be made by the BOE based on the preliminary application, the BOE is required to issue a determination regarding the issuance of the seller's permit within 30 days. This bill provides the BOE with an additional five days to make that determination.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
Analysis Prepared by: Carlos Anguiano / REV. & TAX. / (916) 319-2098
Bill Author
Bill Co-Author(s):