California 2017-2018 Regular Session Status: In Committee

AB 2355 — Sales and use taxes: exclusions: exemptions: income taxes: credits: border wall.

Last action — Ordered to inactive file at the request of Assembly Member Ting.

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

This bill died with 2017-2018 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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

Existing sales and use tax laws impose 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 a partial 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 purchased by a qualified person for purchases not exceeding $200,000,000, for use primarily in manufacturing, processing, refining, fabricating, or recycling of tangible personal property, as specified; qualified tangible personal property purchased for use by a qualified person to be used primarily in research and development, as provided; qualified tangible personal property purchased for use by a qualified person to be used primarily to maintain, repair, measure, or test any qualified tangible personal property, as provided; and qualified tangible personal property purchased by a contractor purchasing that property for use in the performance of a construction contract for the qualified person, that will use that property as an integral part of specified processes. Existing law, on and after January 1, 2018, and before July 1, 2030, additionally exempts from those taxes the sale of, and the storage, use, or other consumption of, qualified tangible personal property purchased for use by a qualified person to be used primarily in the generation or production, as defined, or storage and distribution, as defined, of electric power. This bill, on and after January 1, 2019, would eliminate those partial exemptions for the gross receipts from the sale of, and the storage, use, or other consumption of, qualified tangible personal property purchased for use by, and for use in the performance of a construction contract for, any qualified person who is a person that contracts or subcontracts to build, maintain, or provide materials for a specified border wall, as defined. Existing law establishes the California Alternative Energy and Advanced Transportation Financing Authority to provide financial assistance for projects that promote the use of alternative energies. Existing law, until January 1, 2021, authorizes the authority to approve a project for financial assistance in the form of a sales and use tax exclusion for a participating party, as defined. The Sales and Use Tax Law, for the purposes of the taxes imposed pursuant to that law, excludes the lease or transfer of title of tangible personal property constituting a project to a participating party. This bill, on and after January 1, 2019, would prohibit the authority from approving a project for that financial assistance for any applicant who is a person organized for profit that contracts or subcontracts to build, maintain, or provide materials for a specified border wall, as defined. The bill, on and after January 1, 2019, would eliminate that sales and use tax exclusion for any participating party who is a person organized for profit that contracts or subcontracts to build, maintain, or provide materials for the border wall. The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including, (1) in modified conformity to a credit allowed under federal income tax law, a credit for increasing research expenses; (2) for taxable years beginning on or after January 1, 2014, and before January 1, 2021, a credit for hiring qualified full-time employees within specified economic development areas in an amount equal to 35% of the qualified wages paid to those employees multiplied by the applicable percentage for that taxable year; and (3) for each taxable year beginning on or after January 1, 2014, and before January 1, 2025, in an amount as provided in a written agreement between the Governor's Office of Business and Economic Development and the taxpayer, agreed upon by the California Competes Tax Credit Committee, and based on specified factors, including the number of jobs the taxpayer will create or retain in the state and the amount of investment in the state by the taxpayer. This bill, for taxable years beginning on or after January 1, 2019, would disallow those credits to a taxpayer that contracts or subcontracts to build, maintain, or provide materials for a specified border wall, as defined. 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 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. Ordered to inactive file at the request of Assembly Member Ting.

  2. Read second time. Ordered to third reading.

  3. From committee: Do pass. (Ayes 12. Noes 4.) (May 25).

  4. In committee: Set, first hearing. Referred to APPR. suspense file.

  5. From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 3.) (May 7). Re-referred to Com. on APPR.

  6. Re-referred to Com. on REV. & TAX.

  7. From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

  8. Referred to Com. on REV. & TAX.

  9. From printer. May be heard in committee March 16.

  10. Read first time. To print.

Sponsors

  • Lara · Cosponsor
  • Ting · Primary

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 120 not signed on · 1 voted No

Sponsors (1)

  • Ting

Co-sponsors (1)

  • Lara

Not signed on (120)

120 members have not signed on to this bill.

Show all 120 →

"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

Do pass.

Passed 12 Yea · 4 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 9301
Democratic 3000
Republican 0100
Total 12401
% of votes cast 71%24%0%6%
How each member voted (17)
Member Party Vote
Bigelow — Nay
Bloom — Yea
Brough — Not Voting
Nazarian — Yea
Eggman — Yea
Friedman — Yea
Gonzalez Fletcher — Yea
Fong — Nay
Chau — Yea
Obernolte — Nay
Quirk — Yea
Eduardo Garcia — Yea
Wendy Carrillo — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Gallagher, James Republican Nay

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 2355 do?
Existing sales and use tax laws impose 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 a partial 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 purchased by a qualified person for purchases not exceeding $200,000,000, for use primarily in manufacturing, processing, refining, fabricating, or recycling of tangible personal property, as specified; qualified tangible personal property purchased for use by a qualified person to be used primarily in research and development, as provided; qualified tangible personal property purchased for use by a qualified person to be used primarily to maintain, repair, measure, or test any qualified tangible personal property, as provided; and qualified tangible personal property purchased by a contractor purchasing that property for use in the performance of a construction contract for the qualified person, that will use that property as an integral part of specified processes. Existing law, on and after January 1, 2018, and before July 1, 2030, additionally exempts from those taxes the sale of, and the storage, use, or other consumption of, qualified tangible personal property purchased for use by a qualified person to be used primarily in the generation or production, as defined, or storage and distribution, as defined, of electric power. This bill, on and after January 1, 2019, would eliminate those partial exemptions for the gross receipts from the sale of, and the storage, use, or other consumption of, qualified tangible personal property purchased for use by, and for use in the performance of a construction contract for, any qualified person who is a person that contracts or subcontracts to build, maintain, or provide materials for a specified border wall, as defined. Existing law establishes the California Alternative Energy and Advanced Transportation Financing Authority to provide financial assistance for projects that promote the use of alternative energies. Existing law, until January 1, 2021, authorizes the authority to approve a project for financial assistance in the form of a sales and use tax exclusion for a participating party, as defined. The Sales and Use Tax Law, for the purposes of the taxes imposed pursuant to that law, excludes the lease or transfer of title of tangible personal property constituting a project to a participating party. This bill, on and after January 1, 2019, would prohibit the authority from approving a project for that financial assistance for any applicant who is a person organized for profit that contracts or subcontracts to build, maintain, or provide materials for a specified border wall, as defined. The bill, on and after January 1, 2019, would eliminate that sales and use tax exclusion for any participating party who is a person organized for profit that contracts or subcontracts to build, maintain, or provide materials for the border wall. The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including, (1) in modified conformity to a credit allowed under federal income tax law, a credit for increasing research expenses; (2) for taxable years beginning on or after January 1, 2014, and before January 1, 2021, a credit for hiring qualified full-time employees within specified economic development areas in an amount equal to 35% of the qualified wages paid to those employees multiplied by the applicable percentage for that taxable year; and (3) for each taxable year beginning on or after January 1, 2014, and before January 1, 2025, in an amount as provided in a written agreement between the Governor's Office of Business and Economic Development and the taxpayer, agreed upon by the California Competes Tax Credit Committee, and based on specified factors, including the number of jobs the taxpayer will create or retain in the state and the amount of investment in the state by the taxpayer. This bill, for taxable years beginning on or after January 1, 2019, would disallow those credits to a taxpayer that contracts or subcontracts to build, maintain, or provide materials for a specified border wall, as defined. 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 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 AB 2355?
AB 2355 is sponsored by Lara and Ting.
What is the current status of AB 2355?
This bill died with 2017-2018 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 2355?
Track AB 2355 free on One Click Politics — get push/email alerts when it moves.

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