HomeMy WebLinkAboutLegislative Review CMTE - AB 2089 (Tran)CITY OF PALM DESERT
Community Services Division
Staff Report
REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE
ACTION ON AB 2089 (TRAN) AT ITS MEETING OF APRIL 5, 2006
SUBMITTED BY: Patricia Scully, CFEE, Senior Management Analyst
DATE: April 27, 2006
CONTENTS: AB 2089 Language
RECOMMENDATION:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of April 5, 2006, and direct staff to prepare a letter of opposition for the Mayor's
signature with regard to AB 2089 (Parra) relative to tax levies.
EXECUTIVE SUMMARY:
Passage of AB 2089 would exempt from sales tax qualified disaster preparedness
products.
BACKGROUND:
The Sales and Use Tax Law imposes a tax on the gross receipts from the sale, storage,
use, or other consumption of tangible personal property and provides various exemptions
from that tax. Passage of AB 2089 would provide until January 10, 2010, an exemption
from that tax for the gross receipts from the retail sale of qualified disaster preparedness
products purchased during a specified period.
The City of Palm Desert opposes exemption from the imposition of sales tax for any
special interests.
CITY COUNCIL STAFF REPORT
RE: AB 2089 (TRAN)
APRIL 27, 2006
Therefore, the Legislative Review Committee recommends that the City Council oppose
AB 2089 and direct staff to prepare a letter stating that position to appropriate legislators
for the Mayor's signature.
PATRICIA SCULLY, CFEE (J
S1 OR MANAGEMENT ANALYST
SHEILA R. GILL(GAN
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CALIFORNIA LEGISLATURE-2005-06 REGULAR SESSION
ASSEMBLY BILL No. 2089
Introduced by Assembly Member Tran
(Coauthors: Assembly Members Bermudez, Bogh, Canciamilla,
Cogdill, DeVore, La Suer, Mountjoy, Negrete McLeod,
Strickland, Vargas, Villines, Walters, and Wyland)
February 17, 2006
An act to add and repeal Section 6399 of the Revenue and Taxation
Code, relating to taxation, to take effect ilmmediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2089, as introduced, Tran. Sales and use tax: exemptions:
disaster preparedness products.
The Sales and Use Tax Law imposes a tax on the gross receipts
from the sale of, or the storage, use, or other consumption in this state
of, tangible personal property, and provides various exemptions from
that tax. Existing law authorizes cities, counties, and cities and
counties to impose local sales and use taxes or transactions and use
taxes, and provides that exemptions from state sales and use tax are
incorporated into those local taxes.
This bill would provide, until January 1, 2010, an exemption from
that tax for the gross receipts from the retail sale of qualified disaster
preparedness products, as defined, purchased during a specified
period.
This bill would specify that this exemption does not apply to local
sales or transaction and use taxes, unless the governing body of the
taxing county, city, or district votes otherwise.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal cormnittee: yes.
State -mandated local program: no.
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(10) Tarpaulins with a retail price of not more than sixty
dollars ($60).
(11) Tie -down kits with a retail value of not more than sixty
dollars ($60).
(d) The exemption provided for by this section also includes
any of the following purchases:
(1) Layaway agreements entered into during the period
specified in subdivision (b) for which the purchaser has made a
deposit of at least 10 percent of the sale price of the article.
(2) The sale of an article pursuant to an order placed by the
purchaser and paid for in full during the period of exemption
specified in subdivision (b), notwithstanding the fact that
delivery of the article is made subsequent to the period of the
exemption.
(e) Notwithstanding any provision of the Bradley -Burns
Uniform Local Sales and Use Tax Law (Part 1.5 (commencing
with Section 7200)) or the Transactions and Use Tax Law (Part
1.6 (commencing with Section 7251)), the exemption established
herein does not apply with respect to any tax levied by a county,
city, or district pursuant to, or in accordance with, either of these
laws, unless the governing body of the county, city, or district
votes to have the exemption apply.
(f) This section shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted
statute, that is enacted January 1, 2010, deletes or extends that
date.
SEC. 2. The governing body of any county, city, or district
that votes to allow the exemption provided in Section 6399 of the
Revenue and Taxation Code, shall notify the State Board of
Equalization on or before August 15 of each year.
SEC. 3. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
U
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AB 2089
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The people of the State of California do enact as follows:
1 SECTION 1. Section 6399 is added to the Revenue and
2 Taxation Code, to read:
3 6399. (a) There are exempted from the computation of the
4 amount of the sales tax the gross receipts from the sale of
5 qualified disaster preparedness products sold to a purchaser at the
6 retailer's physical place of business, as provided in subdivision
7 (b).
8 (b) The exemption authorized under subdivision (a) shall
9 apply to sales that occur during the nine -day period beginning at
10 12:01 a.m. on the first Saturday in October and ending at 12:00
11 midnight on the second Sunday in October.
12 (c) For purposes of this section "qualified disaster.
13 preparedness products" include:
14 (1) Batteries, including rechargeable and nonrechargeable
15 batteries in AA, C, D, and 6-volt cell sizes, with a retail price that
16 is not more than forty dollars ($40). Batteries shall not include
17 automobile and boat batteries.
18 (2) First aid kits with a retail price that is not more than forty
19 dollars ($40).
20 (3) Flexible waterproof sheeting with a retail price that is not
21 more than sixty dollars ($60).
22 (4) Gas or diesel fuel containers with a retail price that is not
23 more than thirty-five dollars ($35).
24 (5) Ground anchor systems with a retail price that is not more
25 than sixty dollars ($60).
26 (6) Nonelectrical food storage coolers with a retail price that is
27 not more than forty dollars ($40).
28 (7) Portable generators to provide light, communications, or
29 preserve perishable food with a retail price of not more than eight
30 hundred fifty dollars ($850).
31 (8) Portable self -powered light sources, including battery
32 powered flashlights, battery powered lanterns, gas powered
33 lanterns, and candles with a retail price that is not more than
34 thirty dollars ($30).
35 (9) Self -powered and battery -powered radios, including
36 two-way radios and weather -band radios, with a retail price of
37 not more than sixty dollars ($60).
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