CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1120Introduced by Assembly Member Cunningham(Coauthor: Senator Dodd)February 21, 2019 An act to add Section 6010.12 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 1120, as introduced, Cunningham. Sales and use taxes: exclusions: oak barrels.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. Existing law defines sale and purchase for these purposes and provides certain exclusions from those definitions. This bill would provide that sale and purchase do not include any lease or transfer of title of a new or used oak barrel to a person who leases or purchases that oak barrel for the purpose of incorporating oak into distilled spirits.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 laws authorize 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 the Sales and Use Tax Law are automatically incorporated into the local tax laws.Existing law requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions.This bill would provide that, notwithstanding these provisions, 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.This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 6010.12 is added to the Revenue and Taxation Code, to read:6010.12. Sale and purchase, for purposes of this part, do not include any lease or transfer of title of a new or used oak barrel to a person who purchases that oak barrel for the purpose of incorporating oak into distilled spirits.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 California Constitution and shall go into immediate effect. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act.
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1120Introduced by Assembly Member Cunningham(Coauthor: Senator Dodd)February 21, 2019 An act to add Section 6010.12 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 1120, as introduced, Cunningham. Sales and use taxes: exclusions: oak barrels.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. Existing law defines sale and purchase for these purposes and provides certain exclusions from those definitions. This bill would provide that sale and purchase do not include any lease or transfer of title of a new or used oak barrel to a person who leases or purchases that oak barrel for the purpose of incorporating oak into distilled spirits.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 laws authorize 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 the Sales and Use Tax Law are automatically incorporated into the local tax laws.Existing law requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions.This bill would provide that, notwithstanding these provisions, 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.This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Assembly Bill No. 1120
Introduced by Assembly Member Cunningham(Coauthor: Senator Dodd)February 21, 2019
Introduced by Assembly Member Cunningham(Coauthor: Senator Dodd)
February 21, 2019
An act to add Section 6010.12 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1120, as introduced, Cunningham. Sales and use taxes: exclusions: oak barrels.
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. Existing law defines sale and purchase for these purposes and provides certain exclusions from those definitions. This bill would provide that sale and purchase do not include any lease or transfer of title of a new or used oak barrel to a person who leases or purchases that oak barrel for the purpose of incorporating oak into distilled spirits.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 laws authorize 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 the Sales and Use Tax Law are automatically incorporated into the local tax laws.Existing law requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions.This bill would provide that, notwithstanding these provisions, 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.This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.
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. Existing law defines sale and purchase for these purposes and provides certain exclusions from those definitions.
This bill would provide that sale and purchase do not include any lease or transfer of title of a new or used oak barrel to a person who leases or purchases that oak barrel for the purpose of incorporating oak into distilled spirits.
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 laws authorize 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 the Sales and Use Tax Law are automatically incorporated into the local tax laws.
Existing law requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions.
This bill would provide that, notwithstanding these provisions, 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.
This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 6010.12 is added to the Revenue and Taxation Code, to read:6010.12. Sale and purchase, for purposes of this part, do not include any lease or transfer of title of a new or used oak barrel to a person who purchases that oak barrel for the purpose of incorporating oak into distilled spirits.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 California Constitution and shall go into immediate effect. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 6010.12 is added to the Revenue and Taxation Code, to read:6010.12. Sale and purchase, for purposes of this part, do not include any lease or transfer of title of a new or used oak barrel to a person who purchases that oak barrel for the purpose of incorporating oak into distilled spirits.
SECTION 1. Section 6010.12 is added to the Revenue and Taxation Code, to read:
### SECTION 1.
6010.12. Sale and purchase, for purposes of this part, do not include any lease or transfer of title of a new or used oak barrel to a person who purchases that oak barrel for the purpose of incorporating oak into distilled spirits.
6010.12. Sale and purchase, for purposes of this part, do not include any lease or transfer of title of a new or used oak barrel to a person who purchases that oak barrel for the purpose of incorporating oak into distilled spirits.
6010.12. Sale and purchase, for purposes of this part, do not include any lease or transfer of title of a new or used oak barrel to a person who purchases that oak barrel for the purpose of incorporating oak into distilled spirits.
6010.12. Sale and purchase, for purposes of this part, do not include any lease or transfer of title of a new or used oak barrel to a person who purchases that oak barrel for the purpose of incorporating oak into distilled spirits.
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. 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. 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. 2.
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. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act.
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. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act.
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. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act.
### SEC. 3.