California – BOE to Address Rates and Regulations at Next Meeting

SALT Report 2969 – The California State Board of Equalization said they are considering amendments to the sales tax exemption threshold for bulk sales of gold; an adjustment to certain tax and fee rates; and whether to adopt several regulations.  These changes will be addressed at the BOE’s next meeting that will be held in San Francisco on September 10.

Bulk Sales of Bullion

Currently, California law provides a sales and use tax exemption for bulk sales of monetized bullion, non-monetized gold and silver bullion, and numismatic coins that have a market value of $1,500 or more.  The BOE is required to adjust the $1,500 threshold amount by October 1 of each year based on the California Consumer Price Index.

The law requires that the $1,500 threshold amount be increased to $2,000 if the cumulative inflation adjustment exceeds $500.  However, because the adjustment is currently less than $500, the BOE will recommend that the $1,500 threshold be adopted for 2014.

Tax and Fee Programs

The BOE will set the tax and fee rates for the state’s Occupational Lead Poisoning Prevention Program and five other tax and fee programs administered under the Hazardous Substances Tax Law.

Regulations

The BOE is considering whether to promulgate a new regulation regarding petroleum refining properties as authorized by the California Supreme Court.  In its ruling, the Court held that the BOE had the authority to adopt a regulation that would allow refinery property, such as land, improvements, and fixtures to be appraised as a single unit.

Lastly, the BOE will consider whether to adopt proposed Regulations 2000 and 2001. These regulations would authorize retailers of lumber and engineered wood products to retain $250 per retail location from the Lumber Products Assessment that is imposed on sales of wood products that occur on or after January 1, 2013. For sales that occur on or after January 1, 2014, the retailer would be authorized to retain an additional $485 per location from the Lumber Products Assessments.

For Further Information

California State Board of Equalization – News Release NR 84-13-G