AB 28 — State Board of Equalization: administration: retailer engaged in business in this state.

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, measured by sales price. That law defines a "retailer engaged in business in this state" to include retailers that engage in specified activities in this state and requires every retailer engaged in business in this state and making sales of tangible personal property for storage, use, or other consumption in this state to register with the State Board of Equalization and to collect the tax from the purchaser and remit it to the board. This bill would further define a retailer engaged in business in this state as a retailer that has substantial nexus with this state and a retailer upon whom federal law permits the state to impose a use tax collection duty. The bill would also include specified retailers as retailers engaged in business in this state and would eliminate an exclusion. This bill would include in the definition of a retailer engaged in business in this state any retailer entering into agreements under which a person or persons in this state, for a commission or other consideration, directly or indirectly refer potential purchasers, whether by an Internet-based link or an Internet Web site, or otherwise, to the retailer, provided the total cumulative sales price from all sales by the retailer to purchasers in this state that are referred pursuant to these agreements is in excess of $10,000 within the preceding 12 months, and provided further that the retailer has cumulative sales of tangible personal property to purchasers in this state of over $500,000, within the preceding 12 months, except as specified. This bill would also provide that a retailer entering into specified agreements to purchase advertising is not a retailer engaged in business in this state and would define a retailer to include an entity affiliated with a retailer under federal income tax law, as specified. This bill would further provide that these provisions would not apply if the retailer can demonstrate that the referrals would not satisfy specified United States constitutional requirements, as provided. This bill would also include as a retailer engaged in business in this state as a retailer that is a member of a commonly controlled group, as defined under the Corporation Tax Law, and a member of a combined reporting group, as defined, that includes another member of the retailer's commonly controlled group that, pursuant to an agreement with or in cooperation with the retailer, performs services in this state in connection with tangible personal property to be sold by the retailer. This bill would provide that the provisions of this bill are severable. This bill would appropriate $1,000 from the General Fund to the State Board of Equalization for administrative operations. The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. Governor Schwarzenegger issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on December 6, 2010. Governor Brown issued a proclamation on January 20, 2011, declaring and reaffirming that a fiscal emergency exists and stating that his proclamation supersedes the earlier proclamation for purposes of that constitutional provision. This bill would state that it addresses the fiscal emergency declared and reaffirmed by the Governor by proclamation issued on January 20, 2011, pursuant to the California Constitution. This bill would declare that it is to take immediate effect as a bill providing for appropriations related to the Budget Bill.

Bill Text

• Chaptered 06/29/11 - Chaptered Current pdf June 29, 2011
• Enrolled 06/28/11 - Enrolled pdf June 28, 2011
• Amended 06/15/11 - Amended Senate pdf June 15, 2011
• Amended 06/14/11 - Amended Senate pdf June 14, 2011
• Introduced 05/19/11 - Introduced pdf May 19, 2011
• AB28 View text html

Action History

1. June 29, 2011

   Chaptered by Secretary of State. Chapter 7, Statutes of 2011-12 First Extraordinary Session.

2. June 28, 2011

   Approved by the Governor.

3. June 28, 2011

   Enrolled and presented to the Governor at 4:15 p.m.

4. June 15, 2011

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 53. Noes 23. Page 214.).

5. June 15, 2011

   Assembly Rule 77 suspended. (Page 214.)

6. June 15, 2011

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after June 17 pursuant to Assembly Rule 77.

7. June 15, 2011

   Read third time. Passed. Ordered to the Assembly. (Ayes 24. Noes 15. Page 148.).

8. June 15, 2011

   Senate Rule 29.3 suspended. (Ayes 24. Noes 14. Page 147.)

9. June 15, 2011

   Read third time and amended.

10. June 15, 2011

    Ordered to third reading.

11. June 15, 2011

    Withdrawn from committee.

12. June 15, 2011

    Joint Rule 10.5 suspended. (Page 146.)

13. June 15, 2011

    Pursuant to Joint Rule 33.1,

14. June 14, 2011

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.R.

15. June 08, 2011

    Referred to Com. on B. & F.R.

16. June 06, 2011

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

17. June 03, 2011

    Read third time. Passed. Ordered to the Senate. (Ayes 49. Noes 21. Page 182.)

18. June 02, 2011

    Read second time. Ordered to third reading.

19. June 02, 2011

    (Page 171.)

20. June 02, 2011

    Ordered to second reading.

21. June 02, 2011

    Without reference to committee.

22. May 20, 2011

    From printer.

23. May 19, 2011

    Read first time. To print.

Sponsors

• Blumenfield · Primary

Votes

Subjects