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AB-23 Sales and use taxes: tangible personal property.(2007-2008)

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CALIFORNIA LEGISLATURE— 2007–2008 3rd Ext.

Assembly Bill
No. 23


Introduced  by  Assembly Member Charles Calderon

June 25, 2008


An act to add Section 6016.7 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 23, as introduced, Charles Calderon. Sales and use taxes: tangible personal property.
The Sales and Use Tax Law imposes a tax on the gross receipts from the sale in this state of, or the storage, use, or other consumption in this state of, tangible personal property, as defined.
This bill would expand the definition of tangible personal property to include digital property, as defined.
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 XIII A of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on January 10, 2008.
This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on January 10, 2008, pursuant to the California Constitution.
This bill would take effect immediately as a tax levy.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 6016.7 is added to the Revenue and Taxation Code, to read:

6016.7.
 (a) “Tangible personal property,” for purposes of this part, includes any digital property.
(b) “Digital property” means property that meets all of the following conditions:
(1) It is expressed in binary digits.
(2) It is delivered, accessed, or subscribed electronically by way of technology that has electrical, digital, magnetic, optical, electromagnetic, or similar capabilities.
(3) The sale of the property would be treated as a retail sale of tangible personal property if the property was transferred onto tangible storage media.

SEC. 2.

 This act addresses the fiscal emergency declared by the Governor by proclamation on January 10, 2008, pursuant to subdivision (f) of Section 10 of Article IV of the California Constitution.

SEC. 3.

 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.