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AB-2861 Personal income tax: credit: gun safe.(2023-2024)

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Date Published: 03/18/2024 09:00 PM
AB2861:v98#DOCUMENT

Amended  IN  Assembly  March 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2861

Introduced by Assembly Member Wallis

February 15, 2024

An act to amend Section 6006 of the Revenue and Taxation Code, relating to taxation. An act to add and repeal Section 17053.81 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 2861, as amended, Wallis. Sales and use taxes. Personal income tax: credit: gun safe.
The Personal Income Tax Law allows various credits against the taxes imposed by that law.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2025, and before January 1, 2030, in an amount equal to the amount paid or incurred, not to exceed $300, during the taxable year for the purchase of one gun safe, as defined, for use in a residential unit located in the state.
Existing law requires any bill authorizing a new tax expenditure, as defined, to include tax credits, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.
This bill would include findings and reporting requirements in compliance with this requirement.
This bill would take effect immediately as a tax levy.

Existing sales and use tax laws impose 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. The Sales and Use Tax Law defines the term “sale” for these purposes.

This bill would make nonsubstantive changes to that provision.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 17053.81 is added to the Revenue and Taxation Code, to read:

17053.81.
 (a) For each taxable year beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, in an amount equal to the amount paid or incurred by the taxpayer during the taxable year for the purchase of one gun safe for use in a residential unit located in the state, but not to exceed three hundred dollars ($300).
(b) For purposes of this section, “gun safe” means a new safe that is specifically manufactured to store firearms, that is constructed of steel or a material of equal or greater strength, and that has a combination or key lock listed by the Underwriters’ Laboratories Incorporated.
(c) (1) In the case of two taxpayers filing a joint return, only one credit may be claimed. In the case of two taxpayers who may legally file a joint return but file separate returns, only one of the taxpayers may claim the credit allowed by this section.
(2) A taxpayer shall only be eligible for one credit allowed by this section and shall not be eligible for the credit if they received the credit in any prior taxable year.
(d) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding years if necessary, until the credit is exhausted.
(e) (1) For purposes of complying with Section 41, the Legislature finds and declares the specific goals, purposes, and objectives of the tax credit allowed by this section are to assist California residents by providing for the safe storage of guns that they own and to increase the number of Californians who safely store those guns, which will lower the likelihood of accidental gunshot wounds, particularly with respect to children, and will reduce theft of firearms from households for subsequent use in crimes.
(2) The performance indicator for the Legislature to use in determining whether the credit achieves the goals, purposes, and objectives described in paragraph (1) is the number of taxpayers that receive the credit.
(3) Notwithstanding Section 19542, no later than December 1, 2026, and each December 1 thereafter until December 1, 2030, the Franchise Tax Board shall submit a report to the Legislature, in accordance with Section 9795 of the Government Code, detailing the number of taxpayers that received the credit pursuant to this section for the most recent taxable year.
(f) This section shall remain operative until December 1, 2030, and as of that date is repealed. However, any unused credit may continue to be carried forward, as provided in subdivision (d), until the credit is exhausted.

SEC. 2.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SECTION 1.Section 6006 of the Revenue and Taxation Code is amended to read:
6006.

“Sale” means and includes:

(a)Any transfer of title or possession, exchange, or barter, conditional or otherwise, in any manner or by any means, of tangible personal property for a consideration. “Transfer of possession” includes only transactions found by the board to be in lieu of a transfer of title, exchange, or barter.

(b)The producing, fabricating, processing, printing, or imprinting of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the producing, fabricating, processing, printing, or imprinting.

(c)The furnishing and distributing of tangible personal property for a consideration by social clubs and fraternal organizations to their members or others.

(d)The furnishing, preparing, or serving for a consideration of food, meals, or drinks.

(e)A transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price.

(f)A transfer for a consideration of the title or possession of tangible personal property which has been produced, fabricated, or printed to the special order of the customer, or of any publication.

(g)Any lease of tangible personal property in any manner or by any means, for a consideration, except a lease of:

(1)Motion pictures or animated motion pictures, including television, films, and tapes.

(2)Linen supplies and similar articles when an essential part of the lease agreement is the furnishing of the recurring service of laundering or cleaning the articles.

(3)Household furnishings with a lease of the living quarters in which they are to be used.

(4)Mobile transportation equipment for use in transportation of persons or property as defined in Section 6023.

(5)Tangible personal property leased in substantially the same form as acquired by the lessor or leased in substantially the same form as acquired by a transferor, as to which the lessor or transferor has paid sales tax reimbursement or has paid use tax measured by the purchase price of the property. For purposes of this paragraph, “transferor” shall mean the following:

(A)A person from whom the lessor acquired the property in a transaction described in subdivision (b) of Section 6006.5.

(B)A decedent from whom the lessor acquired the property by will or the laws of succession.

(6)A mobilehome, as defined in Sections 18008 and 18211 of the Health and Safety Code, other than a mobilehome originally sold new prior to July 1, 1980, and not subject to local property taxation.

(7)Paragraphs (1) and (5) and Section 6094.1 shall not apply to rentals or leases of video cassettes, video tapes, and video discs for private use under which the lessee or renter does not obtain or acquire the right to license, broadcast, exhibit, or reproduce the video cassette, video tape, or video disc.