CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 52Introduced by Assembly Member GraysonDecember 05, 2022 An act relating to taxation.LEGISLATIVE COUNSEL'S DIGESTAB 52, as introduced, Grayson. Sales and Use Tax Law: manufacturing equipment: research and development equipment.Existing law, 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. Exemptions from state sales and use taxes are automatically incorporated into the local tax laws.Existing law, the Sales and Use Tax Law, imposes state taxes 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. The Sales and Use Tax Law provides various exemptions from those taxes, including an exemption from those taxes, on and after July 1, 2014, and before July 1, 2030, for the gross receipts from the sale of, and the storage, use, or other consumption of, qualified tangible personal property, as defined, that is, among other things, purchased by a qualified person for purchases for use primarily in manufacturing, processing, refining, fabricating, or recycling of tangible personal property, as specified, or purchased for use by a qualified person to be used primarily in research and development. Existing law prohibits the exemption described above from applying with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, the Bradley-Burns Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law, sales and use taxes imposed pursuant to certain provisions of the Sales and Use Tax Law, and sales and use taxes imposed pursuant to certain provisions of the California Constitution.This bill would express the intent of the Legislature to expand the sales and use tax exemption for manufacturing and research and development equipment to preserve Californias status as a hub of innovation and technology and to encourage greater investment in California.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. The Legislature finds and declares all of the following:(a) Businesses conducting manufacturing or research and development activities are essential to the economic well-being of California and provide high-wage jobs for Californians. In recent years, many of these businesses have chosen to relocate operations to lower cost jurisdictions or expand outside of California.(b) California has the highest state-level sales tax rate among the 50 states in the United States, and after local rates are accounted for, sales and use tax rates in California can reach up to 10.75 percent.(c) Thirty-eight states fully exempt manufacturing equipment from sales and use tax. With Californias current partial exemption, taxpayers pay more to buy equipment in California than they would elsewhere, creating a competitive disadvantage for the state.SEC. 2. It is the intent of the Legislature to expand the sales and use tax exemption for manufacturing and research and development equipment to preserve Californias status as a hub of innovation and technology and to encourage greater investment in California.
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 52Introduced by Assembly Member GraysonDecember 05, 2022 An act relating to taxation.LEGISLATIVE COUNSEL'S DIGESTAB 52, as introduced, Grayson. Sales and Use Tax Law: manufacturing equipment: research and development equipment.Existing law, 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. Exemptions from state sales and use taxes are automatically incorporated into the local tax laws.Existing law, the Sales and Use Tax Law, imposes state taxes 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. The Sales and Use Tax Law provides various exemptions from those taxes, including an exemption from those taxes, on and after July 1, 2014, and before July 1, 2030, for the gross receipts from the sale of, and the storage, use, or other consumption of, qualified tangible personal property, as defined, that is, among other things, purchased by a qualified person for purchases for use primarily in manufacturing, processing, refining, fabricating, or recycling of tangible personal property, as specified, or purchased for use by a qualified person to be used primarily in research and development. Existing law prohibits the exemption described above from applying with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, the Bradley-Burns Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law, sales and use taxes imposed pursuant to certain provisions of the Sales and Use Tax Law, and sales and use taxes imposed pursuant to certain provisions of the California Constitution.This bill would express the intent of the Legislature to expand the sales and use tax exemption for manufacturing and research and development equipment to preserve Californias status as a hub of innovation and technology and to encourage greater investment in California.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 52
Introduced by Assembly Member GraysonDecember 05, 2022
Introduced by Assembly Member Grayson
December 05, 2022
An act relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 52, as introduced, Grayson. Sales and Use Tax Law: manufacturing equipment: research and development equipment.
Existing law, 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. Exemptions from state sales and use taxes are automatically incorporated into the local tax laws.Existing law, the Sales and Use Tax Law, imposes state taxes 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. The Sales and Use Tax Law provides various exemptions from those taxes, including an exemption from those taxes, on and after July 1, 2014, and before July 1, 2030, for the gross receipts from the sale of, and the storage, use, or other consumption of, qualified tangible personal property, as defined, that is, among other things, purchased by a qualified person for purchases for use primarily in manufacturing, processing, refining, fabricating, or recycling of tangible personal property, as specified, or purchased for use by a qualified person to be used primarily in research and development. Existing law prohibits the exemption described above from applying with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, the Bradley-Burns Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law, sales and use taxes imposed pursuant to certain provisions of the Sales and Use Tax Law, and sales and use taxes imposed pursuant to certain provisions of the California Constitution.This bill would express the intent of the Legislature to expand the sales and use tax exemption for manufacturing and research and development equipment to preserve Californias status as a hub of innovation and technology and to encourage greater investment in California.
Existing law, 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. Exemptions from state sales and use taxes are automatically incorporated into the local tax laws.
Existing law, the Sales and Use Tax Law, imposes state taxes 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. The Sales and Use Tax Law provides various exemptions from those taxes, including an exemption from those taxes, on and after July 1, 2014, and before July 1, 2030, for the gross receipts from the sale of, and the storage, use, or other consumption of, qualified tangible personal property, as defined, that is, among other things, purchased by a qualified person for purchases for use primarily in manufacturing, processing, refining, fabricating, or recycling of tangible personal property, as specified, or purchased for use by a qualified person to be used primarily in research and development. Existing law prohibits the exemption described above from applying with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, the Bradley-Burns Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law, sales and use taxes imposed pursuant to certain provisions of the Sales and Use Tax Law, and sales and use taxes imposed pursuant to certain provisions of the California Constitution.
This bill would express the intent of the Legislature to expand the sales and use tax exemption for manufacturing and research and development equipment to preserve Californias status as a hub of innovation and technology and to encourage greater investment in California.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Businesses conducting manufacturing or research and development activities are essential to the economic well-being of California and provide high-wage jobs for Californians. In recent years, many of these businesses have chosen to relocate operations to lower cost jurisdictions or expand outside of California.(b) California has the highest state-level sales tax rate among the 50 states in the United States, and after local rates are accounted for, sales and use tax rates in California can reach up to 10.75 percent.(c) Thirty-eight states fully exempt manufacturing equipment from sales and use tax. With Californias current partial exemption, taxpayers pay more to buy equipment in California than they would elsewhere, creating a competitive disadvantage for the state.SEC. 2. It is the intent of the Legislature to expand the sales and use tax exemption for manufacturing and research and development equipment to preserve Californias status as a hub of innovation and technology and to encourage greater investment in California.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares all of the following:(a) Businesses conducting manufacturing or research and development activities are essential to the economic well-being of California and provide high-wage jobs for Californians. In recent years, many of these businesses have chosen to relocate operations to lower cost jurisdictions or expand outside of California.(b) California has the highest state-level sales tax rate among the 50 states in the United States, and after local rates are accounted for, sales and use tax rates in California can reach up to 10.75 percent.(c) Thirty-eight states fully exempt manufacturing equipment from sales and use tax. With Californias current partial exemption, taxpayers pay more to buy equipment in California than they would elsewhere, creating a competitive disadvantage for the state.
SECTION 1. The Legislature finds and declares all of the following:(a) Businesses conducting manufacturing or research and development activities are essential to the economic well-being of California and provide high-wage jobs for Californians. In recent years, many of these businesses have chosen to relocate operations to lower cost jurisdictions or expand outside of California.(b) California has the highest state-level sales tax rate among the 50 states in the United States, and after local rates are accounted for, sales and use tax rates in California can reach up to 10.75 percent.(c) Thirty-eight states fully exempt manufacturing equipment from sales and use tax. With Californias current partial exemption, taxpayers pay more to buy equipment in California than they would elsewhere, creating a competitive disadvantage for the state.
SECTION 1. The Legislature finds and declares all of the following:
### SECTION 1.
(a) Businesses conducting manufacturing or research and development activities are essential to the economic well-being of California and provide high-wage jobs for Californians. In recent years, many of these businesses have chosen to relocate operations to lower cost jurisdictions or expand outside of California.
(b) California has the highest state-level sales tax rate among the 50 states in the United States, and after local rates are accounted for, sales and use tax rates in California can reach up to 10.75 percent.
(c) Thirty-eight states fully exempt manufacturing equipment from sales and use tax. With Californias current partial exemption, taxpayers pay more to buy equipment in California than they would elsewhere, creating a competitive disadvantage for the state.
SEC. 2. It is the intent of the Legislature to expand the sales and use tax exemption for manufacturing and research and development equipment to preserve Californias status as a hub of innovation and technology and to encourage greater investment in California.
SEC. 2. It is the intent of the Legislature to expand the sales and use tax exemption for manufacturing and research and development equipment to preserve Californias status as a hub of innovation and technology and to encourage greater investment in California.
SEC. 2. It is the intent of the Legislature to expand the sales and use tax exemption for manufacturing and research and development equipment to preserve Californias status as a hub of innovation and technology and to encourage greater investment in California.
### SEC. 2.