CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 993Introduced by Senator HertzbergFebruary 05, 2018 An act to add Chapter 3.8 (commencing with Section 6305) to Part 1 of Division 2 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 993, as introduced, Hertzberg. Sales tax: services.The Sales and Use Tax Law imposes 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.This bill would, on and after January 1, 2019, expand the Sales and Use Tax Law to impose a tax on the purchase of services by businesses in California at a specified percentage of the sales price of the service. The bill would require the tax to be collected and remitted by the seller of the purchased services. The bill would exempt certain types of services, including health care services, from the tax and would exempt from the tax a business with gross receipts of less than $100,000 in the previous 4 quarters. The bill would require the tax to be paid to the California Department of Tax and Fee Administration and would require the department to transmit the payments, less refunds and cost of administration, to the Treasurer to be deposited into the Retail Sales Tax on Services Fund, which this bill would create in the State Treasury. The bill would state that the moneys in that fund are to be appropriated to provide tax relief to middle-income and low-income Californians and to assist in securing greater stability for Californias infrastructure, its workforce, and its education services, including higher education. The bill would also state various related findings and declarations.This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.This bill would take effect immediately as a tax levy.Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES 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 order to mitigate the negative impacts in California of the recently enacted federal tax bill (Public Law 115-97), California needs to reform the states tax system to more equitably share responsibility for supporting critical public programs.(2) Under the new federal tax law (Public Law 115-97), over 6 million Californians who itemize their taxes could lose on average over $8,000 in deductions. This is because the deduction for state and local income and property taxes would be capped at $10,000 by the new federal law (Public Law 115-97).(3) The federal tax changes, coupled with potential reductions to federal programs, pose a risk to Californias economy, California families, and state government.(4) While Californias economy has evolved, its tax system has failed to keep up with the times. Over the past 60 years, California has moved from an agriculture-based and manufacturing-based economy to a service-based economy. In California, goods are subject to sales or use tax while services generally are not. (5) As a result, state tax revenues have become less reliant on revenues derived from the sales and use tax on goods and more reliant on revenues derived from the personal income tax. In 1950, the sales and use taxes comprised 61 percent of the state General Fund; however, today they account for about 30 percent. The personal income tax accounted for 12 percent of the General Fund in 1950; however, today it accounts for almost 70 percent.(b) It is the intent of this act to do all of the following:(1) Provide tax relief to middle-income and low-income Californians to make up in part for tax increases and reductions to federal programs recently enacted or proposed by the federal government.(2) Ensure that out-of-state corporations that do business in California contribute their fair share to Californias economy.(3) Realign a portion of the states outdated tax code with the realities of Californias 21st century service-based economy.(4) Broaden the tax base by imposing a modest sales tax on services used by businesses in California:(A) This tax would offset a portion of the significant financial benefits provided to businesses under the new federal law. However, businesses would still be able to deduct from their federal taxes the state sales and use tax imposed on the services they use, which would mean most businesses will still pay lower taxes than before the federal changes.(B) Health care services, education services, child care, and interest and insurance payments subject to the state gross premiums tax would be exempt from the sales tax on services.(C) These changes would more fairly apportion taxes between goods and services and would produce more stable revenues.SEC. 2. Chapter 3.8 (commencing with Section 6305) is added to Part 1 of Division 2 of the Revenue and Taxation Code, to read: CHAPTER 3.8. Services6305. (a) On and after January 1, 2019, in addition to the other taxes imposed by this part, a sales tax is hereby imposed the purchase of services by businesses in California at the rate of ____ percent of the sales price of the service.(b) The tax shall be collected and remitted by the seller of the service purchased by a business for benefit or use in California. In cases where the service benefits or is used by a purchasers California and non-California operations, an appropriate share of the services shall be apportioned to California for purposes of determining the tax.(c) The following are exempt from the tax imposed by this section:(1) Health care, education, and child care services, and interest and insurance payments subject to the gross premiums tax.(2) A business with gross receipts of less than one hundred thousand dollars ($100,000) in the previous four quarters.6307. (a) The Retail Sales Tax on Services Fund is hereby created in the State Treasury.(b) All amounts of tax required to be paid to the state under this chapter shall be paid to the California Department of Tax and Fee Administration in the form of remittances payable to the California Department of Tax and Fee Administration. The California Department of Tax and Fee Administration shall transmit the payments, less refunds and cost of administration, to the Treasurer to be deposited into the Retail Sales Tax on Services Fund. (c) Moneys in the fund shall be appropriated for the following purposes:(1) Providing tax relief to middle-income and low-income Californians negatively affected by recent changes to federal tax law as well as other changes to federal programs.(2) Assisting in securing greater stability for Californias infrastructure, its workforce, and its education systems, including higher education.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 993Introduced by Senator HertzbergFebruary 05, 2018 An act to add Chapter 3.8 (commencing with Section 6305) to Part 1 of Division 2 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 993, as introduced, Hertzberg. Sales tax: services.The Sales and Use Tax Law imposes 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.This bill would, on and after January 1, 2019, expand the Sales and Use Tax Law to impose a tax on the purchase of services by businesses in California at a specified percentage of the sales price of the service. The bill would require the tax to be collected and remitted by the seller of the purchased services. The bill would exempt certain types of services, including health care services, from the tax and would exempt from the tax a business with gross receipts of less than $100,000 in the previous 4 quarters. The bill would require the tax to be paid to the California Department of Tax and Fee Administration and would require the department to transmit the payments, less refunds and cost of administration, to the Treasurer to be deposited into the Retail Sales Tax on Services Fund, which this bill would create in the State Treasury. The bill would state that the moneys in that fund are to be appropriated to provide tax relief to middle-income and low-income Californians and to assist in securing greater stability for Californias infrastructure, its workforce, and its education services, including higher education. The bill would also state various related findings and declarations.This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.This bill would take effect immediately as a tax levy.Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Senate Bill No. 993
Introduced by Senator HertzbergFebruary 05, 2018
Introduced by Senator Hertzberg
February 05, 2018
An act to add Chapter 3.8 (commencing with Section 6305) to Part 1 of Division 2 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 993, as introduced, Hertzberg. Sales tax: services.
The Sales and Use Tax Law imposes 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.This bill would, on and after January 1, 2019, expand the Sales and Use Tax Law to impose a tax on the purchase of services by businesses in California at a specified percentage of the sales price of the service. The bill would require the tax to be collected and remitted by the seller of the purchased services. The bill would exempt certain types of services, including health care services, from the tax and would exempt from the tax a business with gross receipts of less than $100,000 in the previous 4 quarters. The bill would require the tax to be paid to the California Department of Tax and Fee Administration and would require the department to transmit the payments, less refunds and cost of administration, to the Treasurer to be deposited into the Retail Sales Tax on Services Fund, which this bill would create in the State Treasury. The bill would state that the moneys in that fund are to be appropriated to provide tax relief to middle-income and low-income Californians and to assist in securing greater stability for Californias infrastructure, its workforce, and its education services, including higher education. The bill would also state various related findings and declarations.This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.This bill would take effect immediately as a tax levy.
The Sales and Use Tax Law imposes 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.
This bill would, on and after January 1, 2019, expand the Sales and Use Tax Law to impose a tax on the purchase of services by businesses in California at a specified percentage of the sales price of the service. The bill would require the tax to be collected and remitted by the seller of the purchased services. The bill would exempt certain types of services, including health care services, from the tax and would exempt from the tax a business with gross receipts of less than $100,000 in the previous 4 quarters. The bill would require the tax to be paid to the California Department of Tax and Fee Administration and would require the department to transmit the payments, less refunds and cost of administration, to the Treasurer to be deposited into the Retail Sales Tax on Services Fund, which this bill would create in the State Treasury. The bill would state that the moneys in that fund are to be appropriated to provide tax relief to middle-income and low-income Californians and to assist in securing greater stability for Californias infrastructure, its workforce, and its education services, including higher education. The bill would also state various related findings and declarations.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
This bill would take effect immediately as a tax levy.
## 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 order to mitigate the negative impacts in California of the recently enacted federal tax bill (Public Law 115-97), California needs to reform the states tax system to more equitably share responsibility for supporting critical public programs.(2) Under the new federal tax law (Public Law 115-97), over 6 million Californians who itemize their taxes could lose on average over $8,000 in deductions. This is because the deduction for state and local income and property taxes would be capped at $10,000 by the new federal law (Public Law 115-97).(3) The federal tax changes, coupled with potential reductions to federal programs, pose a risk to Californias economy, California families, and state government.(4) While Californias economy has evolved, its tax system has failed to keep up with the times. Over the past 60 years, California has moved from an agriculture-based and manufacturing-based economy to a service-based economy. In California, goods are subject to sales or use tax while services generally are not. (5) As a result, state tax revenues have become less reliant on revenues derived from the sales and use tax on goods and more reliant on revenues derived from the personal income tax. In 1950, the sales and use taxes comprised 61 percent of the state General Fund; however, today they account for about 30 percent. The personal income tax accounted for 12 percent of the General Fund in 1950; however, today it accounts for almost 70 percent.(b) It is the intent of this act to do all of the following:(1) Provide tax relief to middle-income and low-income Californians to make up in part for tax increases and reductions to federal programs recently enacted or proposed by the federal government.(2) Ensure that out-of-state corporations that do business in California contribute their fair share to Californias economy.(3) Realign a portion of the states outdated tax code with the realities of Californias 21st century service-based economy.(4) Broaden the tax base by imposing a modest sales tax on services used by businesses in California:(A) This tax would offset a portion of the significant financial benefits provided to businesses under the new federal law. However, businesses would still be able to deduct from their federal taxes the state sales and use tax imposed on the services they use, which would mean most businesses will still pay lower taxes than before the federal changes.(B) Health care services, education services, child care, and interest and insurance payments subject to the state gross premiums tax would be exempt from the sales tax on services.(C) These changes would more fairly apportion taxes between goods and services and would produce more stable revenues.SEC. 2. Chapter 3.8 (commencing with Section 6305) is added to Part 1 of Division 2 of the Revenue and Taxation Code, to read: CHAPTER 3.8. Services6305. (a) On and after January 1, 2019, in addition to the other taxes imposed by this part, a sales tax is hereby imposed the purchase of services by businesses in California at the rate of ____ percent of the sales price of the service.(b) The tax shall be collected and remitted by the seller of the service purchased by a business for benefit or use in California. In cases where the service benefits or is used by a purchasers California and non-California operations, an appropriate share of the services shall be apportioned to California for purposes of determining the tax.(c) The following are exempt from the tax imposed by this section:(1) Health care, education, and child care services, and interest and insurance payments subject to the gross premiums tax.(2) A business with gross receipts of less than one hundred thousand dollars ($100,000) in the previous four quarters.6307. (a) The Retail Sales Tax on Services Fund is hereby created in the State Treasury.(b) All amounts of tax required to be paid to the state under this chapter shall be paid to the California Department of Tax and Fee Administration in the form of remittances payable to the California Department of Tax and Fee Administration. The California Department of Tax and Fee Administration shall transmit the payments, less refunds and cost of administration, to the Treasurer to be deposited into the Retail Sales Tax on Services Fund. (c) Moneys in the fund shall be appropriated for the following purposes:(1) Providing tax relief to middle-income and low-income Californians negatively affected by recent changes to federal tax law as well as other changes to federal programs.(2) Assisting in securing greater stability for Californias infrastructure, its workforce, and its education systems, including higher education.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
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 order to mitigate the negative impacts in California of the recently enacted federal tax bill (Public Law 115-97), California needs to reform the states tax system to more equitably share responsibility for supporting critical public programs.(2) Under the new federal tax law (Public Law 115-97), over 6 million Californians who itemize their taxes could lose on average over $8,000 in deductions. This is because the deduction for state and local income and property taxes would be capped at $10,000 by the new federal law (Public Law 115-97).(3) The federal tax changes, coupled with potential reductions to federal programs, pose a risk to Californias economy, California families, and state government.(4) While Californias economy has evolved, its tax system has failed to keep up with the times. Over the past 60 years, California has moved from an agriculture-based and manufacturing-based economy to a service-based economy. In California, goods are subject to sales or use tax while services generally are not. (5) As a result, state tax revenues have become less reliant on revenues derived from the sales and use tax on goods and more reliant on revenues derived from the personal income tax. In 1950, the sales and use taxes comprised 61 percent of the state General Fund; however, today they account for about 30 percent. The personal income tax accounted for 12 percent of the General Fund in 1950; however, today it accounts for almost 70 percent.(b) It is the intent of this act to do all of the following:(1) Provide tax relief to middle-income and low-income Californians to make up in part for tax increases and reductions to federal programs recently enacted or proposed by the federal government.(2) Ensure that out-of-state corporations that do business in California contribute their fair share to Californias economy.(3) Realign a portion of the states outdated tax code with the realities of Californias 21st century service-based economy.(4) Broaden the tax base by imposing a modest sales tax on services used by businesses in California:(A) This tax would offset a portion of the significant financial benefits provided to businesses under the new federal law. However, businesses would still be able to deduct from their federal taxes the state sales and use tax imposed on the services they use, which would mean most businesses will still pay lower taxes than before the federal changes.(B) Health care services, education services, child care, and interest and insurance payments subject to the state gross premiums tax would be exempt from the sales tax on services.(C) These changes would more fairly apportion taxes between goods and services and would produce more stable revenues.
SECTION 1. (a) The Legislature finds and declares all of the following:(1) In order to mitigate the negative impacts in California of the recently enacted federal tax bill (Public Law 115-97), California needs to reform the states tax system to more equitably share responsibility for supporting critical public programs.(2) Under the new federal tax law (Public Law 115-97), over 6 million Californians who itemize their taxes could lose on average over $8,000 in deductions. This is because the deduction for state and local income and property taxes would be capped at $10,000 by the new federal law (Public Law 115-97).(3) The federal tax changes, coupled with potential reductions to federal programs, pose a risk to Californias economy, California families, and state government.(4) While Californias economy has evolved, its tax system has failed to keep up with the times. Over the past 60 years, California has moved from an agriculture-based and manufacturing-based economy to a service-based economy. In California, goods are subject to sales or use tax while services generally are not. (5) As a result, state tax revenues have become less reliant on revenues derived from the sales and use tax on goods and more reliant on revenues derived from the personal income tax. In 1950, the sales and use taxes comprised 61 percent of the state General Fund; however, today they account for about 30 percent. The personal income tax accounted for 12 percent of the General Fund in 1950; however, today it accounts for almost 70 percent.(b) It is the intent of this act to do all of the following:(1) Provide tax relief to middle-income and low-income Californians to make up in part for tax increases and reductions to federal programs recently enacted or proposed by the federal government.(2) Ensure that out-of-state corporations that do business in California contribute their fair share to Californias economy.(3) Realign a portion of the states outdated tax code with the realities of Californias 21st century service-based economy.(4) Broaden the tax base by imposing a modest sales tax on services used by businesses in California:(A) This tax would offset a portion of the significant financial benefits provided to businesses under the new federal law. However, businesses would still be able to deduct from their federal taxes the state sales and use tax imposed on the services they use, which would mean most businesses will still pay lower taxes than before the federal changes.(B) Health care services, education services, child care, and interest and insurance payments subject to the state gross premiums tax would be exempt from the sales tax on services.(C) These changes would more fairly apportion taxes between goods and services and would produce more stable revenues.
SECTION 1. (a) The Legislature finds and declares all of the following:
### SECTION 1.
(1) In order to mitigate the negative impacts in California of the recently enacted federal tax bill (Public Law 115-97), California needs to reform the states tax system to more equitably share responsibility for supporting critical public programs.
(2) Under the new federal tax law (Public Law 115-97), over 6 million Californians who itemize their taxes could lose on average over $8,000 in deductions. This is because the deduction for state and local income and property taxes would be capped at $10,000 by the new federal law (Public Law 115-97).
(3) The federal tax changes, coupled with potential reductions to federal programs, pose a risk to Californias economy, California families, and state government.
(4) While Californias economy has evolved, its tax system has failed to keep up with the times. Over the past 60 years, California has moved from an agriculture-based and manufacturing-based economy to a service-based economy. In California, goods are subject to sales or use tax while services generally are not.
(5) As a result, state tax revenues have become less reliant on revenues derived from the sales and use tax on goods and more reliant on revenues derived from the personal income tax. In 1950, the sales and use taxes comprised 61 percent of the state General Fund; however, today they account for about 30 percent. The personal income tax accounted for 12 percent of the General Fund in 1950; however, today it accounts for almost 70 percent.
(b) It is the intent of this act to do all of the following:
(1) Provide tax relief to middle-income and low-income Californians to make up in part for tax increases and reductions to federal programs recently enacted or proposed by the federal government.
(2) Ensure that out-of-state corporations that do business in California contribute their fair share to Californias economy.
(3) Realign a portion of the states outdated tax code with the realities of Californias 21st century service-based economy.
(4) Broaden the tax base by imposing a modest sales tax on services used by businesses in California:
(A) This tax would offset a portion of the significant financial benefits provided to businesses under the new federal law. However, businesses would still be able to deduct from their federal taxes the state sales and use tax imposed on the services they use, which would mean most businesses will still pay lower taxes than before the federal changes.
(B) Health care services, education services, child care, and interest and insurance payments subject to the state gross premiums tax would be exempt from the sales tax on services.
(C) These changes would more fairly apportion taxes between goods and services and would produce more stable revenues.
SEC. 2. Chapter 3.8 (commencing with Section 6305) is added to Part 1 of Division 2 of the Revenue and Taxation Code, to read: CHAPTER 3.8. Services6305. (a) On and after January 1, 2019, in addition to the other taxes imposed by this part, a sales tax is hereby imposed the purchase of services by businesses in California at the rate of ____ percent of the sales price of the service.(b) The tax shall be collected and remitted by the seller of the service purchased by a business for benefit or use in California. In cases where the service benefits or is used by a purchasers California and non-California operations, an appropriate share of the services shall be apportioned to California for purposes of determining the tax.(c) The following are exempt from the tax imposed by this section:(1) Health care, education, and child care services, and interest and insurance payments subject to the gross premiums tax.(2) A business with gross receipts of less than one hundred thousand dollars ($100,000) in the previous four quarters.6307. (a) The Retail Sales Tax on Services Fund is hereby created in the State Treasury.(b) All amounts of tax required to be paid to the state under this chapter shall be paid to the California Department of Tax and Fee Administration in the form of remittances payable to the California Department of Tax and Fee Administration. The California Department of Tax and Fee Administration shall transmit the payments, less refunds and cost of administration, to the Treasurer to be deposited into the Retail Sales Tax on Services Fund. (c) Moneys in the fund shall be appropriated for the following purposes:(1) Providing tax relief to middle-income and low-income Californians negatively affected by recent changes to federal tax law as well as other changes to federal programs.(2) Assisting in securing greater stability for Californias infrastructure, its workforce, and its education systems, including higher education.
SEC. 2. Chapter 3.8 (commencing with Section 6305) is added to Part 1 of Division 2 of the Revenue and Taxation Code, to read:
### SEC. 2.
CHAPTER 3.8. Services6305. (a) On and after January 1, 2019, in addition to the other taxes imposed by this part, a sales tax is hereby imposed the purchase of services by businesses in California at the rate of ____ percent of the sales price of the service.(b) The tax shall be collected and remitted by the seller of the service purchased by a business for benefit or use in California. In cases where the service benefits or is used by a purchasers California and non-California operations, an appropriate share of the services shall be apportioned to California for purposes of determining the tax.(c) The following are exempt from the tax imposed by this section:(1) Health care, education, and child care services, and interest and insurance payments subject to the gross premiums tax.(2) A business with gross receipts of less than one hundred thousand dollars ($100,000) in the previous four quarters.6307. (a) The Retail Sales Tax on Services Fund is hereby created in the State Treasury.(b) All amounts of tax required to be paid to the state under this chapter shall be paid to the California Department of Tax and Fee Administration in the form of remittances payable to the California Department of Tax and Fee Administration. The California Department of Tax and Fee Administration shall transmit the payments, less refunds and cost of administration, to the Treasurer to be deposited into the Retail Sales Tax on Services Fund. (c) Moneys in the fund shall be appropriated for the following purposes:(1) Providing tax relief to middle-income and low-income Californians negatively affected by recent changes to federal tax law as well as other changes to federal programs.(2) Assisting in securing greater stability for Californias infrastructure, its workforce, and its education systems, including higher education.
CHAPTER 3.8. Services6305. (a) On and after January 1, 2019, in addition to the other taxes imposed by this part, a sales tax is hereby imposed the purchase of services by businesses in California at the rate of ____ percent of the sales price of the service.(b) The tax shall be collected and remitted by the seller of the service purchased by a business for benefit or use in California. In cases where the service benefits or is used by a purchasers California and non-California operations, an appropriate share of the services shall be apportioned to California for purposes of determining the tax.(c) The following are exempt from the tax imposed by this section:(1) Health care, education, and child care services, and interest and insurance payments subject to the gross premiums tax.(2) A business with gross receipts of less than one hundred thousand dollars ($100,000) in the previous four quarters.6307. (a) The Retail Sales Tax on Services Fund is hereby created in the State Treasury.(b) All amounts of tax required to be paid to the state under this chapter shall be paid to the California Department of Tax and Fee Administration in the form of remittances payable to the California Department of Tax and Fee Administration. The California Department of Tax and Fee Administration shall transmit the payments, less refunds and cost of administration, to the Treasurer to be deposited into the Retail Sales Tax on Services Fund. (c) Moneys in the fund shall be appropriated for the following purposes:(1) Providing tax relief to middle-income and low-income Californians negatively affected by recent changes to federal tax law as well as other changes to federal programs.(2) Assisting in securing greater stability for Californias infrastructure, its workforce, and its education systems, including higher education.
CHAPTER 3.8. Services
CHAPTER 3.8. Services
6305. (a) On and after January 1, 2019, in addition to the other taxes imposed by this part, a sales tax is hereby imposed the purchase of services by businesses in California at the rate of ____ percent of the sales price of the service.(b) The tax shall be collected and remitted by the seller of the service purchased by a business for benefit or use in California. In cases where the service benefits or is used by a purchasers California and non-California operations, an appropriate share of the services shall be apportioned to California for purposes of determining the tax.(c) The following are exempt from the tax imposed by this section:(1) Health care, education, and child care services, and interest and insurance payments subject to the gross premiums tax.(2) A business with gross receipts of less than one hundred thousand dollars ($100,000) in the previous four quarters.
6305. (a) On and after January 1, 2019, in addition to the other taxes imposed by this part, a sales tax is hereby imposed the purchase of services by businesses in California at the rate of ____ percent of the sales price of the service.
(b) The tax shall be collected and remitted by the seller of the service purchased by a business for benefit or use in California. In cases where the service benefits or is used by a purchasers California and non-California operations, an appropriate share of the services shall be apportioned to California for purposes of determining the tax.
(c) The following are exempt from the tax imposed by this section:
(1) Health care, education, and child care services, and interest and insurance payments subject to the gross premiums tax.
(2) A business with gross receipts of less than one hundred thousand dollars ($100,000) in the previous four quarters.
6307. (a) The Retail Sales Tax on Services Fund is hereby created in the State Treasury.(b) All amounts of tax required to be paid to the state under this chapter shall be paid to the California Department of Tax and Fee Administration in the form of remittances payable to the California Department of Tax and Fee Administration. The California Department of Tax and Fee Administration shall transmit the payments, less refunds and cost of administration, to the Treasurer to be deposited into the Retail Sales Tax on Services Fund. (c) Moneys in the fund shall be appropriated for the following purposes:(1) Providing tax relief to middle-income and low-income Californians negatively affected by recent changes to federal tax law as well as other changes to federal programs.(2) Assisting in securing greater stability for Californias infrastructure, its workforce, and its education systems, including higher education.
6307. (a) The Retail Sales Tax on Services Fund is hereby created in the State Treasury.
(b) All amounts of tax required to be paid to the state under this chapter shall be paid to the California Department of Tax and Fee Administration in the form of remittances payable to the California Department of Tax and Fee Administration. The California Department of Tax and Fee Administration shall transmit the payments, less refunds and cost of administration, to the Treasurer to be deposited into the Retail Sales Tax on Services Fund.
(c) Moneys in the fund shall be appropriated for the following purposes:
(1) Providing tax relief to middle-income and low-income Californians negatively affected by recent changes to federal tax law as well as other changes to federal programs.
(2) Assisting in securing greater stability for Californias infrastructure, its workforce, and its education systems, including higher education.
SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
### SEC. 3.