California 2011-2012 Regular Session Status: Enacted

AB 2618 — Sales and use taxes: auction: vehicles.

Last action — Chaptered by Secretary of State - Chapter 756, Statutes of 2012.

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

This bill has been enacted into law. Introduced February 24, 2012. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 6 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

The Sales and Use Tax Law presumes that all proceeds from retail sales are subject to tax until the contrary is established. The burden of proving a sale of tangible personal property is not a retail sale subject to tax is on the seller unless the seller takes a resale certificate in good faith from a person engaged in the business of selling tangible personal property who holds a permit under that law. Under that law, a person engaged in the business of making retail sales at auction of tangible personal property owned by others is a retailer. That law generally provides that retail sales of vehicles subject to registration under the Vehicle Code are subject to sales tax when sold by a person licensed or certificated under the Vehicle Code and subject to use tax, collected by the Department of Motor Vehicles, when sold by a person not so licensed or certificated. A vehicle not registered under the Vehicle Code, such as a salvage vehicle, is not subject to the special rules for registered vehicles. This bill would provide that a licensed dismantler that sells specified vehicles, motorhomes, or commercial coaches subject to registration or qualification under the Health and Safety Code or the Vehicle Code, and salvage certificate vehicles, or a person making those sales at auction, is presumed to be making a sale at retail, subject to tax and not a sale for resale. This bill would provide that the seller may rebut this presumption by taking a resale certificate that includes specified information from a licensed dealer, dismantler, automotive repair dealer, or scrap metal processor. This bill would allow a qualified person that does not timely obtain a resale certificate to use alternative methods, prescribed by the State Board of Equalization, to verify the transaction is a valid sale for resale. 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. Existing law authorizes districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which conforms to the Sales and Use Tax Law. Amendments to state sales and use taxes are incorporated into these laws. 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 XIII A 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. Chaptered by Secretary of State - Chapter 756, Statutes of 2012.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 5 p.m.

  4. In Assembly. Ordered to Engrossing and Enrolling.

  5. Read third time. Passed. Ordered to the Assembly. (Ayes 35. Noes 0. Page 4474.).

  6. Read second time. Ordered to third reading.

  7. From committee: Be placed on second reading file pursuant to Senate Rule 28.8.

  8. From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (June 20). Re-referred to Com. on APPR.

  9. Referred to Com. on GOV. & F.

  10. In Senate. Read first time. To Com. on RLS. for assignment.

  11. Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 5059.)

  12. Read second time. Ordered to third reading.

  13. From committee: Do pass. (Ayes 17. Noes 0.) (May 25).

  14. From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (May 14). Re-referred to Com. on APPR.

  15. In committee: Set, first hearing. Referred to REV. & TAX. suspense file.

  16. From committee: Be re-referred to Com. on REV. & TAX. Re-referred. (Ayes 9. Noes 0.) (April 23). Re-referred to Com. on REV. & TAX.

  17. Re-referred to Com. on RLS. pursuant to Assembly Rule 96.

  18. Re-referred to Com. on JUD.

  19. From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.

  20. Re-referred to Com. on JUD.

  21. From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.

  22. Referred to Com. on JUD.

  23. Read first time.

  24. From printer. May be heard in committee March 27.

  25. Introduced. To print.

Sponsors

  • Ma · Primary

Sponsorship breakdown

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

Sponsors (1)

  • Ma

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"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

Votes

3rd Reading AB2618 Ma By La Malfa

Passed 35 Yea · 0 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 34003
Democratic 1001
Republican 0001
Total 35005
% of votes cast 88%0%0%13%
How each member voted (40)
Member Party Vote
Yee — Yea
Cannella — Yea
Evans — Yea
Runner — Yea
Lowenthal — Yea
De León — Yea
Negrete McLeod — Yea
Rubio — Yea
Corbett — Yea
Correa — Yea
Hancock — Not Voting
Blakeslee — Yea
Dutton — Yea
Hernandez — Yea
Kehoe — Yea
Leno — Yea
Liu — Not Voting
Pavley — Yea
Simitian — Yea
Vargas — Yea
Wolk — Yea
Wright — Yea
Alquist — Yea
Anderson — Not Voting
Harman — Yea
Huff — Yea
Lieu — Yea
Price — Yea
Steinberg — Yea
Walters — Yea
Wyland — Yea
Emmerson — Yea
DeSaulnier — Yea
Fuller — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
La Malfa — Yea
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Not Voting
Strickland, Tony Republican Not Voting

Official roll call →

AB 2618 MA Assembly Third Reading

Passed 77 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Republican 2000
Unaffiliated 74003
Democratic 1000
Total 77003
% of votes cast 96%0%0%4%
How each member voted (80)
Member Party Vote
Halderman — Yea
Yamada — Yea
Butler — Yea
Furutani — Yea
Garrick — Yea
John A. Pérez — Yea
Mitchell — Yea
Hagman — Yea
Atkins — Yea
Campos — Yea
Harkey — Yea
Hill — Yea
Carter — Yea
Portantino — Yea
Hueso — Yea
Huffman — Yea
Chesbro — Yea
Allen — Yea
Knight — Yea
Ammiano — Yea
Conway — Yea
Cook — Yea
Davis — Yea
Dickinson — Yea
Donnelly — Yea
Mendoza — Yea
Miller — Yea
Pan — Yea
Perea — Yea
Skinner — Yea
Swanson — Yea
Wagner — Yea
Wieckowski — Yea
Bonilla — Yea
Fong — Yea
Fletcher — Not Voting
Fuentes — Yea
Galgiani — Yea
Gordon — Yea
Gorell — Yea
Cedillo — Not Voting
Hall — Not Voting
Beall — Yea
Lara — Yea
Monning — Yea
Morrell — Yea
Nestande — Yea
Nielsen — Yea
Norby — Yea
Torres — Yea
Achadjian — Yea
Alejo — Yea
Block — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Hayashi — Yea
Huber — Yea
Jeffries — Yea
Logue — Yea
Ma — Yea
Mansoor — Yea
Olsen — Yea
Silva — Yea
Smyth — Yea
Solorio — Yea
Valadao — Yea
Williams — Yea
Eng — Yea
Feuer — Yea
Gatto — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Bonnie Lowenthal — Yea
Roger Hernández — Yea
V. Manuel Pérez — Yea
Calderon, Lisa Democratic Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass.

Passed 17 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 16000
Democratic 1000
Total 17000
% of votes cast 100%0%0%0%
How each member voted (17)
Member Party Vote
Gatto — Yea
Harkey — Yea
Blumenfield — Yea
Davis — Yea
Wagner — Yea
Mitchell — Yea
Norby — Yea
Campos — Yea
Donnelly — Yea
Ammiano — Yea
Bradford — Yea
Hill — Yea
Lara — Yea
Nielsen — Yea
Solorio — Yea
Fuentes — Yea
Calderon, Lisa Democratic Yea

Official roll call →

Be referred to Committee on Revenue and Taxation.

Passed 9 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 9002
Total 9002
% of votes cast 82%0%0%18%
How each member voted (11)
Member Party Vote
Butler — Yea
Hagman — Yea
Carter — Yea
Hueso — Yea
Knight — Yea
Donnelly — Yea
Silva — Yea
Williams — Yea
Alejo — Yea
Skinner — Not Voting
Davis — Not Voting

Official roll call →

Subjects

taxation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does AB 2618 do?
The Sales and Use Tax Law presumes that all proceeds from retail sales are subject to tax until the contrary is established. The burden of proving a sale of tangible personal property is not a retail sale subject to tax is on the seller unless the seller takes a resale certificate in good faith from a person engaged in the business of selling tangible personal property who holds a permit under that law. Under that law, a person engaged in the business of making retail sales at auction of tangible personal property owned by others is a retailer. That law generally provides that retail sales of vehicles subject to registration under the Vehicle Code are subject to sales tax when sold by a person licensed or certificated under the Vehicle Code and subject to use tax, collected by the Department of Motor Vehicles, when sold by a person not so licensed or certificated. A vehicle not registered under the Vehicle Code, such as a salvage vehicle, is not subject to the special rules for registered vehicles. This bill would provide that a licensed dismantler that sells specified vehicles, motorhomes, or commercial coaches subject to registration or qualification under the Health and Safety Code or the Vehicle Code, and salvage certificate vehicles, or a person making those sales at auction, is presumed to be making a sale at retail, subject to tax and not a sale for resale. This bill would provide that the seller may rebut this presumption by taking a resale certificate that includes specified information from a licensed dealer, dismantler, automotive repair dealer, or scrap metal processor. This bill would allow a qualified person that does not timely obtain a resale certificate to use alternative methods, prescribed by the State Board of Equalization, to verify the transaction is a valid sale for resale. 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. Existing law authorizes districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which conforms to the Sales and Use Tax Law. Amendments to state sales and use taxes are incorporated into these laws. 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 XIII A 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 AB 2618?
AB 2618 is sponsored by Ma.
What is the current status of AB 2618?
This bill has been enacted into law. Introduced February 24, 2012. Enacted.
Where can I track AB 2618?
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