May June 2003 Cal Pilots Newsletter
INTRODUCED BY Assembly Member Levine FEBRUARY 19, 2003 An act to amend Section 6248 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL’S DIGEST AB 694, as introduced, Levine. Use tax: vehicles, vessels, and aircraft. The Sales and Use Tax Law imposes a tax on the gross receipts from the sale in this state of, or the storage, use, or other consumption in this state of, tangible personal property. Under existing statutory and regulatory law there is a rebuttable presumption that a vehicle, vessel, or aircraft purchased outside of the state is subject to use tax if that vehicle, vessel, or aircraft is brought into this state within 90 days from the date of purchase. This bill would expand the existing presumption to apply to a vehicle, vessel, or aircraft purchased outside of the state if that vehicle, vessel, or aircraft (1) is purchased by a California resident, (2) was subject to California’s registration or property tax laws during the first 12 months of ownership, or (3) was used or stored in this state more than 1/2 of the time during the first 12 months of ownership. This bill, by expanding the application of an existing presumption regarding the imposition of use tax on vehicles, vessels, and aircraft purchased outside of this state, would result in a change in state taxes for the purpose of increasing revenues within the meaning of Section 3 of Article XIII A 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, but its operative date would depend on its effective date. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.