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LEGISLATION COMMITTEE

Meeting Date:	05/07/2015
Subject: SB 120 (Anderson) Sales and Use Taxes: First Responder Equipment
Submitted For:	LEGISLATION COMMITTEE
Department:	County Administrator
Referral No.:	2015-12
Referral Name:	SB 120 (Anderson) Sales and Use Taxes: First Responder Equipment
Presenter:	L. DeLaney	Contact:	L. DeLaney, 925-335-1097

Information

Referral History:

This bill was referred to the Legislation Committee by Fire Chief Jeff Carman.

Referral Update:

Senate Bill (SB) 120 would, in the sale of any public safety first responder vehicle that is purchased by a local public agency and in the sale of any equipment required on a public safety first responder vehicle that is purchased by a local public agency, exclude from the terms "gross receipts" and "sales price," amounts of the gross receipts or sales price in excess of $300,000.

Status: 04/07/2015 Re-referred to SENATE Committee on GOVERNANCE AND FINANCE.

Background: Existing sales and use tax laws impose a tax on retailers measured by the 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 terms "gross receipts" and "sales price."

The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing law authorizes districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to state sales and use taxes are incorporated into these laws.

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 any local agencies for sales and use tax revenues lost by them pursuant to this bill.

Recommendation(s)/Next Step(s):

CONSIDER recommending a position of "Support" to the Board of Supervisors for SB 120 (Anderson) Sales and Use Taxes: First Responder Equipment.

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