Loading...
HomeMy WebLinkAboutLegislative Review CMTE - AB 2096 (Parra)-T CITY OF PALM DESERT Community Services Division Staff Report REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION ON AB 2096 (PARRA) AT ITS MEETING OF APRIL 5, 2006 SUBMITTED BY: Patricia Scully, CFEE, Senior Management Analyst DATE: April 27, 2006 CONTENTS: AB 2096 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 2096 (Parra) relative to tax levies. EXECUTIVE SUMMARY: Passage of AB 2096 would exempt from sales tax firearm safety devices. 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 the taxes imposed by that law. Passage of AB 2096 would, for the calendar years beginning on or after January 1, 2007, exempt from State taxes the gross receipts derived from the sale, storage, use, or other consumption of a firearm safety device, gun safe, or long -gun safe. The City of Palm Desert opposes exemption from the imposition of sales tax for any special interests. CITY COUNCIL STAFF REPORT RE: AB 2096 (PARRA) APRIL 27, 2006 Therefore, the Legislative Review Committee recommends that the City Council oppose AB 2096 and direct staff to prepare a letter stating that position to appropriate legislators for the Mayor's signature. YST SHEILA R. GAN CARLOS L. O TEG ACWCOMMUNITY SE VI ES CITY MANAGER PS:mpg F. CALIFORNIA LEGISLATURE-2005-o6 REGULAR SESSION ASSEMBLY BILL No. 2096 Introduced by Assembly Member Parra February 17, 2006 An act to add Section 6380.5 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGEST AB 2096, as introduced, Parra. Sales and use taxes: exemptions: firearm safety devices. The Sales and Use Tax Law imposes a tax on the gross receipts from the sale in this state of, or the storage, use, or other consumption in this state of, tangible personal property, and provides various exemptions from the taxes imposed by that law. This bill would, for calendar years beginning on or after January 1, 2007, exempt from those state taxes the gross receipts derived from the sale in this state of, and the storage, use, or other consumption in this state of, a firearm safety device, gun safe, or long -gun safe, as defined. Counties and cities are authorized to impose local sales and use taxes in conformity with state sales and use taxes. Exemptions from state sales and use taxes enacted by the Legislature are incorporated into the local taxes. 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 local agencies for sales and use tax revenues lost by them pursuant to this bill. 99 AB 2096 This bill would take effect immediately as a tax levy, but would not become operative until January 1, 2007. Vote: majority. Appropriation: no. Fiscal committee: yes. State -mandated local program: yes. The people of the State of California do enact as follows: 1 SECTION 1. Section 6380.5 is added to the Revenue and 2 Taxation Code, to read: 3 6380.5. (a) There are exempted from the taxes imposed by 4 this part, the gross receipts derived from the sale in this state of, 5 or the storage, use, or other consumption in this state of, either of 6 the following: 7 (1) A firearm safety device that is listed on the roster 8 maintained by the Department of Justice pursuant to subdivision 9 (d) of Section 12088 of the Penal Code or complies with the 10 standards for firearms safety devices adopted pursuant to Section 11 12088.2 of the Penal Code. 12 (2) A gun safe or long -gun safe that complies with the 13 standards for gun safes adopted pursuant to Section 12088.2 of 14 the Penal Code. 15 (b) For the purposes of this section, the following definitions 16 apply: 17 (1) "Firearm safety device" means a firearm safety device as 18 defined in subdivision (a) of Section 12087.6 of the Penal Code. 19 (2) "Gun safe" ineans a gun safe as defined in subdivision (b) 20 of Section 12087.6 of the Penal Code. 21 (3) "Long -gun safe" means a long -gun safe as defined in 22 subdivision (c) of Section 12087.6 of the Penal Code. 23 (4) The exemption authorized by this section shall become 24 operative on January 1, 2007. 25 SEC. 2. Notwithstanding Section 2230 of the Revenue and 26 Taxation Code, no appropriation is made by this act and the state 27 shall not reimburse any local agency for any sales and use tax 28 revenues lost by it under this act. 29 SEC. 3. This act provides for a tax levy within the meaning of 30 Article IV of the Constitution and shall go into immediate effect. n 99 CALIFORNIA LEGISLATURE-2005-o6 REGULAR SESSION ASSEMBLY BILL No. 2111 Introduced by Assembly Member Haynes February 17, 2006 An act to add Section 6380.5 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGEST AB 2111, as introduced, Haynes. Sales and use taxes: exemptions: firearm safety devices. The Sales and Use Tax Law imposes a tax on the gross receipts from the sale in this state of, or the storage, use, or other consumption in this state of, tangible personal property. That law provides various exemptions from that tax. This bill would, for calendar years beginning on or after January 1, 2007, exempt from those state taxes the gross receipts derived from the sale in this state of, and the storage, use, or other consumption in this state of, a firearm safety device, gun safe, or long -gun safe, as defined. 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 local agencies for sales and use tax revenues lost by them pursuant to this bill. This bill would take effect immediately as a tax levy, but would not become operative until January 1, 2007. Vote: majority. Appropriation: no. Fiscal committee: yes. State -mandated local program: yes. 99 AB 2111 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 The people of the State of California do enact as follows: . SECTION 1. Section 6380.5 is added to the Revenue and Taxation Code, to read: 6380.5. (a) There are exempted from the taxes imposed by this part, the gross receipts derived from the sale in this state of, or the storage, use, or other consumption in this state of, either of the following: (1) A firearm safety device that is listed on the roster maintained by the Department of Justice pursuant to subdivision (d) of Section 12088 of the Penal Code or complies with the standards for firearms safety devices adopted pursuant to Section 12088.2 of the Penal Code. (2) A gun safe or long -gun safe that complies with the standards for gun safes adopted pursuant to Section 12088.2 of the Penal Code. (b) For the purposes of this section, the following definitions apply: (1) "Firearm safety device" means a firearm safety device as defined in subdivision (a) of Section 12087.6 of the Penal Code. (2) "Gun safe" means a gun safe as defined in subdivision (b) of Section 12087.6 of the Penal Code. (3) "Long -gun safe" means a long -gun safe as defined in subdivision (c) of Section 12087.6 of the Penal Code. (4) The exemption authorized by this section shall become operative on January 1, 2007. SEC. 2. Notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any sales and use tax revenues lost by it under this act. SEC. 3. This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect. .X 99