California 2009-2010 Regular Session Status: In Committee

SB 1373 — Sales and use taxes: retailer: construction contractor.

Last action — From committee without further action.

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2009-2010 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

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. A construction contractor generally does not sell materials to his or her customer, but instead uses the materials in furnishing and installing the materials in the performance of a construction contract, with either sales tax applying to the sale of materials to the construction contractor, or if sales tax does not apply, use tax applying to the storage, use, or other consumption of the materials purchased by the construction contractor. If the contractor has not purchased the materials, but has acquired them from its real property, no sales or use tax applies. This bill would, for contracts awarded on and after April 1, 2011, deem a construction contractor the retailer of any aggregate-based materials that the contractor fabricates, manufactures, processes, or produces, and permanently incorporates into a construction project. The bill would specify how the gross receipts from the deemed retail sale are determined. 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 law authorizes districts, as specified, to impose transactions and use taxes in conformity with the Transactions and Use Tax Law, which conforms to the Sales and Use Tax Law. Those laws require that a local sales and use tax ordinance or transactions and use tax ordinance provide that amendments to the Sales and Use Tax Law automatically become a part of the ordinance. The provisions of this bill would automatically be incorporated into those ordinances. This bill would result in a change in state taxes for the purpose of increasing state revenues within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This bill would take effect immediately as a tax levy.

Bill Text

Action History

  1. From committee without further action.

  2. Placed on REV. & TAX. suspense file.

  3. Set for hearing June 9.

  4. From committee with author's amendments. Read second time. Amended. Re-referred to Com. on REV. & TAX.

  5. Set, first hearing. Hearing canceled at the request of author.

  6. Set for hearing May 12.

  7. Hearing postponed by committee.

  8. Set for hearing April 28.

  9. To Com. on REV. & TAX.

  10. From print. May be acted upon on or after March 23.

  11. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Leno · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Leno

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation
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Frequently asked questions

What does SB 1373 do?
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. A construction contractor generally does not sell materials to his or her customer, but instead uses the materials in furnishing and installing the materials in the performance of a construction contract, with either sales tax applying to the sale of materials to the construction contractor, or if sales tax does not apply, use tax applying to the storage, use, or other consumption of the materials purchased by the construction contractor. If the contractor has not purchased the materials, but has acquired them from its real property, no sales or use tax applies. This bill would, for contracts awarded on and after April 1, 2011, deem a construction contractor the retailer of any aggregate-based materials that the contractor fabricates, manufactures, processes, or produces, and permanently incorporates into a construction project. The bill would specify how the gross receipts from the deemed retail sale are determined. 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 law authorizes districts, as specified, to impose transactions and use taxes in conformity with the Transactions and Use Tax Law, which conforms to the Sales and Use Tax Law. Those laws require that a local sales and use tax ordinance or transactions and use tax ordinance provide that amendments to the Sales and Use Tax Law automatically become a part of the ordinance. The provisions of this bill would automatically be incorporated into those ordinances. This bill would result in a change in state taxes for the purpose of increasing state revenues within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This bill would take effect immediately as a tax levy.
Who sponsors SB 1373?
SB 1373 is sponsored by Leno.
What is the current status of SB 1373?
This bill died with 2009-2010 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 1373?
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