AB 1774 — Sales and use tax: exemption: gold and silver coins: income and corporation taxes: capital gains.

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

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Frequently asked questions

What does AB 1774 do?

(1) Federal law provides that United States coins and currency are legal tender for all debts, public charges, taxes, and dues. Existing law further provides that a person may pay a debt in gold coin or legal-tender notes of the United States unless otherwise provided in the obligation out of which the debt arises. This bill would provide that gold and silver coin issued by the federal government is legal tender in California and that a person may not compel another person to tender or accept gold and silver coin that is issued by the federal government, except when otherwise provided in the obligation out of which the debt arises. (2) The Sales and Use Tax Law imposes a tax on retailers measured by the gross receipts from the sale of tangible personal property 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. That law provides various exemptions from those taxes, including an exemption for the sale in bulk of bullion and numismatic coins, and the storage, use, or other consumption of, those bullion and coins, as provided. This bill would additionally exempt from those taxes, the gross receipts from the sale of, and the storage, use, or other consumption in this state of, gold and silver coins issued by the federal government. The Bradley-Burns Uniform Local Sales and Use Tax 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 to impose transactions and use taxes in accordance with the Transactions and Use Tax Law which conforms to the Sales and Use Tax Law. Exemptions from state sales and use taxes are incorporated into these laws. Section 2230 of the Revenue and Taxation Code provides that the state will reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions. This bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for sales and use tax revenues lost by them pursuant to this bill. (3) The Personal Income Tax Law and the Corporation Tax Law provide that a gain or loss upon the disposition of a capital asset is determined by reference to the specified adjusted basis of that asset. This bill would provide, under both laws, that the gross income of a taxpayer does not include any gain from the sale or exchange of gold and silver coins issued by the federal government.

Who sponsors AB 1774?

AB 1774 is sponsored by Mansoor.

What is the current status of AB 1774?

This bill died with 2011-2012 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 AB 1774?

Track AB 1774 free on One Click Politics — get push/email alerts when it moves.