CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 600Introduced by Senator Galgiani(Principal coauthor: Assembly Member Cooper)February 17, 2017 An act relating to taxation. LEGISLATIVE COUNSEL'S DIGESTSB 600, as introduced, Galgiani. Sales and use taxes.Existing sales and use tax laws impose taxes on retailers measured by 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. Those laws partially exempt from those taxes, for a specified period, the gross receipts from the sale of, and the storage, use, or other consumption of, specified tangible personal property purchased for use by a qualified person, as defined, to be used primarily in manufacturing or other processes, and in research and development.This bill would declare the intent of the Legislature to enact legislation that would improve the states sales and use tax incentives to promote a stronger California economy by securing a greater share of the high-paying, high-skilled jobs in manufacturing and research and development. The bill would also make findings and declarations in this regard.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) In 2013, California enacted a partial sales and use tax exemption for manufacturing and research-and-development equipment to encourage capital investments and job creation, and to make California more competitive in attracting new businesses and expansions of existing businesses.(2) According to the 2015 Reshoring Initiative Data Report, the United States has brought approximately 130,000 manufacturing jobs back from other countries between 2010 and 2015. However, the report also shows that California only attracted 1,479 of those reshored jobs meaning that California missed out on the opportunity to grow its manufacturing sector and create more high-paying middle-class jobs.(3) The manufacturing sector is important for the long-term health of Californias economy and middle-class growth potential with an average annual wage of $83,000 and the multiplier effect that results in approximately 2.5 jobs created for every manufacturing job created.(4) California must take steps now to create an investment environment that attracts more manufacturing and research-and-development jobs in order to be more competitive with the 48 other states that exempt manufacturing equipment from sales and use tax, and to benefit from reshoring and other economic growth opportunities.(b) It is the intent of the Legislature to enact legislation that would improve the states sales and use tax incentives to promote a stronger California economy by securing a greater share of the high-paying, high-skilled jobs in manufacturing and research and development.
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 600Introduced by Senator Galgiani(Principal coauthor: Assembly Member Cooper)February 17, 2017 An act relating to taxation. LEGISLATIVE COUNSEL'S DIGESTSB 600, as introduced, Galgiani. Sales and use taxes.Existing sales and use tax laws impose taxes on retailers measured by 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. Those laws partially exempt from those taxes, for a specified period, the gross receipts from the sale of, and the storage, use, or other consumption of, specified tangible personal property purchased for use by a qualified person, as defined, to be used primarily in manufacturing or other processes, and in research and development.This bill would declare the intent of the Legislature to enact legislation that would improve the states sales and use tax incentives to promote a stronger California economy by securing a greater share of the high-paying, high-skilled jobs in manufacturing and research and development. The bill would also make findings and declarations in this regard.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Senate Bill No. 600
Introduced by Senator Galgiani(Principal coauthor: Assembly Member Cooper)February 17, 2017
Introduced by Senator Galgiani(Principal coauthor: Assembly Member Cooper)
February 17, 2017
An act relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 600, as introduced, Galgiani. Sales and use taxes.
Existing sales and use tax laws impose taxes on retailers measured by 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. Those laws partially exempt from those taxes, for a specified period, the gross receipts from the sale of, and the storage, use, or other consumption of, specified tangible personal property purchased for use by a qualified person, as defined, to be used primarily in manufacturing or other processes, and in research and development.This bill would declare the intent of the Legislature to enact legislation that would improve the states sales and use tax incentives to promote a stronger California economy by securing a greater share of the high-paying, high-skilled jobs in manufacturing and research and development. The bill would also make findings and declarations in this regard.
Existing sales and use tax laws impose taxes on retailers measured by 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. Those laws partially exempt from those taxes, for a specified period, the gross receipts from the sale of, and the storage, use, or other consumption of, specified tangible personal property purchased for use by a qualified person, as defined, to be used primarily in manufacturing or other processes, and in research and development.
This bill would declare the intent of the Legislature to enact legislation that would improve the states sales and use tax incentives to promote a stronger California economy by securing a greater share of the high-paying, high-skilled jobs in manufacturing and research and development. The bill would also make findings and declarations in this regard.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) In 2013, California enacted a partial sales and use tax exemption for manufacturing and research-and-development equipment to encourage capital investments and job creation, and to make California more competitive in attracting new businesses and expansions of existing businesses.(2) According to the 2015 Reshoring Initiative Data Report, the United States has brought approximately 130,000 manufacturing jobs back from other countries between 2010 and 2015. However, the report also shows that California only attracted 1,479 of those reshored jobs meaning that California missed out on the opportunity to grow its manufacturing sector and create more high-paying middle-class jobs.(3) The manufacturing sector is important for the long-term health of Californias economy and middle-class growth potential with an average annual wage of $83,000 and the multiplier effect that results in approximately 2.5 jobs created for every manufacturing job created.(4) California must take steps now to create an investment environment that attracts more manufacturing and research-and-development jobs in order to be more competitive with the 48 other states that exempt manufacturing equipment from sales and use tax, and to benefit from reshoring and other economic growth opportunities.(b) It is the intent of the Legislature to enact legislation that would improve the states sales and use tax incentives to promote a stronger California economy by securing a greater share of the high-paying, high-skilled jobs in manufacturing and research and development.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. (a) The Legislature finds and declares all of the following:(1) In 2013, California enacted a partial sales and use tax exemption for manufacturing and research-and-development equipment to encourage capital investments and job creation, and to make California more competitive in attracting new businesses and expansions of existing businesses.(2) According to the 2015 Reshoring Initiative Data Report, the United States has brought approximately 130,000 manufacturing jobs back from other countries between 2010 and 2015. However, the report also shows that California only attracted 1,479 of those reshored jobs meaning that California missed out on the opportunity to grow its manufacturing sector and create more high-paying middle-class jobs.(3) The manufacturing sector is important for the long-term health of Californias economy and middle-class growth potential with an average annual wage of $83,000 and the multiplier effect that results in approximately 2.5 jobs created for every manufacturing job created.(4) California must take steps now to create an investment environment that attracts more manufacturing and research-and-development jobs in order to be more competitive with the 48 other states that exempt manufacturing equipment from sales and use tax, and to benefit from reshoring and other economic growth opportunities.(b) It is the intent of the Legislature to enact legislation that would improve the states sales and use tax incentives to promote a stronger California economy by securing a greater share of the high-paying, high-skilled jobs in manufacturing and research and development.
SECTION 1. (a) The Legislature finds and declares all of the following:(1) In 2013, California enacted a partial sales and use tax exemption for manufacturing and research-and-development equipment to encourage capital investments and job creation, and to make California more competitive in attracting new businesses and expansions of existing businesses.(2) According to the 2015 Reshoring Initiative Data Report, the United States has brought approximately 130,000 manufacturing jobs back from other countries between 2010 and 2015. However, the report also shows that California only attracted 1,479 of those reshored jobs meaning that California missed out on the opportunity to grow its manufacturing sector and create more high-paying middle-class jobs.(3) The manufacturing sector is important for the long-term health of Californias economy and middle-class growth potential with an average annual wage of $83,000 and the multiplier effect that results in approximately 2.5 jobs created for every manufacturing job created.(4) California must take steps now to create an investment environment that attracts more manufacturing and research-and-development jobs in order to be more competitive with the 48 other states that exempt manufacturing equipment from sales and use tax, and to benefit from reshoring and other economic growth opportunities.(b) It is the intent of the Legislature to enact legislation that would improve the states sales and use tax incentives to promote a stronger California economy by securing a greater share of the high-paying, high-skilled jobs in manufacturing and research and development.
SECTION 1. (a) The Legislature finds and declares all of the following:
### SECTION 1.
(1) In 2013, California enacted a partial sales and use tax exemption for manufacturing and research-and-development equipment to encourage capital investments and job creation, and to make California more competitive in attracting new businesses and expansions of existing businesses.
(2) According to the 2015 Reshoring Initiative Data Report, the United States has brought approximately 130,000 manufacturing jobs back from other countries between 2010 and 2015. However, the report also shows that California only attracted 1,479 of those reshored jobs meaning that California missed out on the opportunity to grow its manufacturing sector and create more high-paying middle-class jobs.
(3) The manufacturing sector is important for the long-term health of Californias economy and middle-class growth potential with an average annual wage of $83,000 and the multiplier effect that results in approximately 2.5 jobs created for every manufacturing job created.
(4) California must take steps now to create an investment environment that attracts more manufacturing and research-and-development jobs in order to be more competitive with the 48 other states that exempt manufacturing equipment from sales and use tax, and to benefit from reshoring and other economic growth opportunities.
(b) It is the intent of the Legislature to enact legislation that would improve the states sales and use tax incentives to promote a stronger California economy by securing a greater share of the high-paying, high-skilled jobs in manufacturing and research and development.