California – Bill to Amend Transaction and Use Tax Laws Enrolled

SALT Report 1718 – The California General Assembly enrolled a bill that is intended to streamline the Revenue and Taxation Code by making the transaction rate and the use tax rates consistent.  Currently cities, counties and special districts are authorized to impose a transaction and use tax in addition to the statewide sales and use tax rate of 7.25%.

If signed by the Governor, AB 1126 will give districts the authority to impose a transactions tax for the privilege of selling tangible personal property at retail at a rate of 1⁄8 of 1%, or a multiple thereof, of the gross receipts from the sale of all tangible personal property sold at retail in the district.  The bill also provides that a complimentary use tax will be imposed on the storage, use, or consumption of tangible personal property at a rate 1⁄8 of 1%.

For Further Information:

California State Legislature – AB 1126