Today's Law As Amended


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SB-1086 Sales and use taxes: wireless communication devices: bundled transactions.(2011-2012)



As Amends the Law Today


SECTION 1.

 Section 6012.4 is added to the Revenue and Taxation Code, to read:

6012.4.
 (a) Notwithstanding Sections 6011 and 6012, “gross receipts” and “sales price” from the retail sale of a wireless telecommunication device shall be limited to the amount charged for the sale of the wireless telecommunication device when that device is sold in a bundled transaction.
(b) “Bundled transaction” means a retail sale of a wireless telecommunication device that contractually requires the retailer’s customer to activate or contract with a wireless telecommunications service provider for utility service for a period greater than one month as a condition of that sale.
(c) “Wireless telecommunication device” means a portable communication device, such as a wireless telephone or pager, that requires activation by a wireless telecommunications service provider or seller of utility services in order to send, receive, or send and receive transmissions via a network of wireless transmitters throughout multiple service areas, or otherwise. The term includes devices based on analog technology and devices based on digital technology.
(d) “Wireless telecommunications service provider” means a utility regulated by the Public Utilities Commission or Federal Communication Commission and that offers or provides wireless communication or paging services.
SEC. 2.
 Notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any sales and use tax revenues lost by it under this act.
SEC. 3.
 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act.