HomeMy WebLinkAboutSB 699 - Manufacturing EquipmentCITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION
ON SB 699 (ALQUIST) AT ITS MEETING OF MARCH 24, 2009.
DATE: April 9, 2009
CONTENTS: SB 699 Language
RECOMMENDATION:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of March 24, 2009, and direct staff to prepare a letter of opposition for the Mayor's
signature with regard to SB 699 (Alquist) relative to manufacturing equipment.
BACKGROUND:
The Sales and Use Tax Law imposes tax on the gross receipts from the sale, storage, use or
other consumption of tangible personal property. If passed, SB 699 would exempt from sales
and use tax manufacturing equipment produced to reduce energy and water use. The City of
Palm Desert opposes any legislation which would remove funds needed to provide services and
facilities for its residents and guests.
Therefore the Legislative Review Committee recommends that the City Council oppose SB 699
and direct staff to prepare a letter stating that position to appropriate legislators and committees
for the,Nlayor's signature.
PATRICIA SCULLY, CFEE
PAUL GIBSON
SENIOR MANAGEMENT ALYST DIRECTOR OF FINANCE/CITY TREASURER
SHEILA R. GILL
ACM/COMMUNITY SER
o HN M. WOHLMUTH
/ CITY MANAGER
CITY COUNCILACTION
APPROVED f DENIED
RECEIVED OTIIER
MEETING DATE W'9-C'�
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ABSENT: A/ T)ne--
ABSTAIN: Alnne
VERIFIED BY: % L)i (ra
Original on File with City Clerk's Office
State Net Bill Text
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2009 CA S 699
AUTHOR: Alquist
VERSION: Introduced
VERSION DATE: 02/27/2009
SENATE BILL No. 699
INTRODUCED BY Senator Alquist
(Principal coauthor: Senator Strickland)
(Principal coauthor: Assembly Member Ruskin)
(Coauthors: Senators Calderon, Hannan, Maldonado, and Walters)
(Coauthors: Assembly Members Blakeslee, Buchanan, Coto, Fuentes, Galgiani,
Garrick, Harkey, Jeffries, Lieu, Niello, and Portantino)
FEBRUARY 27, 2009
An act relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 699, as introduced, Alquist. Sales and use tax: manufacturing equipment: energy and water use.
The Sales and Use Tax Law imposes a sales tax on the gross receipts from the retail sale in this state
of tangible personal property, or a use tax 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 declare the intent of the Legislature to enact legislation that would exempt from sales
and use taxes, the sale and purchase of manufacturing equipment that reduces energy and water use, and
increases energy efficiency and water recycling.
Vote: majority. Appropriation: no. Fiscal committee: no. State -mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature to enact legislation that would exempt from sales and
use taxes, the sale and purchase of manufacturing equipment that reduces energy and water use, and
increases energy efficiency and water recycling.
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