BILL NUMBER: AB 187 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 19, 2013
INTRODUCED BY Assembly Member Bonta
JANUARY 28, 2013
An act relating to ammunition. to amend
Section 1656.1 of the Civil Code, to add Title 7 (commencing with
Section 14001) to Part 4 of the Penal Code, and to add Part 14.5
(commencing with Section 33001) to Division 2 of the Revenue and
Taxation Code, relating to taxation, to take effect immediat
ely, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 187, as amended, Bonta. Ammunition.
Taxation: ammunition: Public Safety Emergency Prevention Fund.
Existing sales and use tax laws impose taxes 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.
This bill would impose a tax upon retailers for the privilege of
selling ammunition at the rate of 10% of the gross receipts of any
retailer from the sale of ammunition sold at retail in this state on
or after January 1, 2014. It would also impose a comparable excise
tax on the storage, use, or other consumption in this state of
ammunition purchased from a retailer for the storage, use, or other
consumption in this state, as provided. The taxes would be collected
pursuant to the Fee Collection Procedures Law. This bill would
require that revenues collected pursuant to these taxes be deposited
in the Public Safety Emergency Prevention Fund, which the bill would
create. The moneys in the fund would be allocated, upon appropriation
by the Legislature, to the Office of Emergency Services to fund
public safety programs in high crime municipalities.
Because this bill would expand the scope of the Fee Collection
Procedures Law, the violation of which is a crime, and would create
crimes for specified retailer misconduct, it would impose a
state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
This bill would include a change in state statute that would
result in a taxpayer paying a higher tax 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.
This bill would take effect immediately as a tax levy.
Existing law prohibits that a handgun ammunition vendor, as
defined, from selling, offering for sale, or displaying for sale, any
handgun ammunition in a manner that allows that ammunition to be
accessible to a purchaser without the assistance of the vendor or
employee thereof. Existing law requires, subject to exceptions, that
handgun ammunition vendors obtain a thumbprint and other information
from ammunition purchasers, as specified.
This bill would state the intent of the Legislature to enact
legislation that would establish a tax on all ammunition sold in
retail stores and gun shows in the state and direct tax revenue to a
fund to prevent crime in high-crime areas of the state.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) California recognizes a clearly defined nexus between the use
of guns in violent crime and access to guns and ammunition.
(b) While many factors can contribute to an increase in gun crime,
one important way to reduce crime is through proper funding of
public safety services.
(c) Communities, such as Oakland and Stockton, have been suffering
from spikes in violent crime with 131 and 71 homicides reported in
2012, respectively, in conjunction with reductions in public safety
budgets and street-level police forces. There is a clear and
compelling risk to the safety of the public in these communities.
(d) The Legislature, therefore, finds and declares that providing
a source of stable revenue through a tax on the sale of ammunition to
fund vital public safety programs in high crime municipalities will
serve California's best interest by likely reducing acts of violence
committed with a deadly weapon in the state and thereby promoting the
health and safety of the state's residents.
SEC. 2. Section 1656.1 of the Civil
Code is amended to read:
1656.1. (a) Whether a retailer may add sales tax reimbursement to
the sales price of the tangible personal property sold at retail to
a purchaser depends solely upon the terms of the agreement of sale.
It shall be presumed that the parties agreed to the addition of sales
tax reimbursement to the sales price of tangible personal property
sold at retail to a purchaser if:
(1) The agreement of sale expressly provides for such addition of
sales tax reimbursement;
(2) Sales tax reimbursement is shown on the sales check or other
proof of sale; or
(3) The retailer posts in his or her premises in a location
visible to purchasers, or includes on a price tag or in an
advertisement or other printed material directed to purchasers, a
notice to the effect that reimbursement for sales tax will be added
to the sales price of all items or certain items, whichever is
applicable.
(b) It shall be presumed that the property, the gross receipts
from the sale of which is subject to the sales tax, is sold at a
price which includes tax reimbursement if the retailer posts in his
or her premises, or includes on a price tag or in an
advertisement (whichever is applicable) advertisement,
whichever is applicable, one of the following notices:
(1) "All prices of taxable items include sales tax reimbursement
computed to the nearest mill."
(2) "The price of this item includes sales tax reimbursement
computed to the nearest mill."
(c) (1) The State Board of Equalization shall prepare and make
available for inspection and duplication or reproduction a sales tax
reimbursement schedule which shall be identical with the
following tables up to the amounts specified therein:
set forth the various rates of tax then in effect as applied to price
ranges from one cent ($0.01) to at least one dollar ($1).
4 3/4 percent
Price Tax
.01- .10 .................................. .00
.11- .31 .................................. .01
.32- .52 .................................. .02
.53- .73 .................................. .03
.74- .94 .................................. .04
.95-1.15 .................................. .05
5 percent
Price Tax
.01- .09 .................................. .00
.10- .29 .................................. .01
.30- .49 .................................. .02
.50- .69 .................................. .03
.70- .89 .................................. .04
.90-1.09 .................................. .05
5 1/4 percent
Price Tax
.01- .09 .................................. .00
.10- .28 .................................. .01
.29- .47 .................................. .02
.48- .66 .................................. .03
.67- .85 .................................. .04
.86-1.04 .................................. .05
5 1/2 percent
Price Tax
.01- .09 .................................. .00
.10- .27 .................................. .01
.28- .45 .................................. .02
.46- .63 .................................. .03
.64- .81 .................................. .04
.82- .99 .................................. .05
1.00-1.18 ................................ .06
5 3/4 percent
Price Tax
.01- .08 .................................. .00
.09- .26 .................................. .01
.27- .43 .................................. .02
.44- .60 .................................. .03
.61- .78 .................................. .04
.79- .95 .................................. .05
.96-1.13 .................................. .06
6 percent
Price Tax
.01- .08 .................................. .00
.09- .24 .................................. .01
.25- .41 .................................. .02
.42- .58 .................................. .03
.59- .74 .................................. .04
.75- .91 .................................. .05
.92-1.08 .................................. .06
6 1/4 percent
Price Tax
.01- .07 .................................. .00
.08- .23 .................................. .01
.24- .39 .................................. .02
.40- .55 .................................. .03
.56- .71 .................................. .04
.72- .87 .................................. .05
.88-1.03 .................................. .06
6 1/2 percent
Price Tax
.01- .07 .................................. .00
.08- .23 .................................. .01
.24- .38 .................................. .02
.39- .53 .................................. .03
.54- .69 .................................. .04
.70- .84 .................................. .05
.85- .99 .................................. .06
1.00-1.15 ................................ .07
6 3/4 percent
Price Tax
.01- .07 .................................. .00
.08- .22 .................................. .01
.23- .3 7.................................. .02
.38- .5 1.................................. .03
.52- .66 .................................. .04
.67- .81 .................................. .05
.82- .96 .................................. .06
.97-1.11 .................................. .07
7 percent
Price Tax
.01- .07 .................................. .00
.08- .21 .................................. .01
.22- .35 .................................. .02
.36- .49 .................................. .03
.50- .64 .................................. .04
.65- .78 .................................. .05
.79- .92 .................................. .06
.93-1.07 .................................. .07
7 1/4 percent
Price Tax
.01- .06 .................................. .00
.07- .20 .................................. .01
.21- .34 .................................. .02
.35- .48 .................................. .03
.49- .62 .................................. .04
.63- .75 .................................. .05
.76- .89 .................................. .06
.90-1.03 .................................. .07
7 1/2 percent
Price Tax
.01- .06 .................................. .00
.07- .19 .................................. .01
.20- .33 .................................. .02
.34- .46 .................................. .03
.47- .59 .................................. .04
.60- .73 .................................. .05
.74- .86 .................................. .06
.87- .99 .................................. .07
1.00-1.13 ................................ .08
(2) Reimbursement on sales prices in excess of those shown in the
schedules prepared pursuant to paragraph (1) may be
computed by applying the applicable tax rate to the sales price,
rounded off to the nearest cent by eliminating any fraction less than
one-half cent and increasing any fraction of one-half cent or over
to the next higher cent.
(3) If sales tax reimbursement is added to the sales price of
tangible personal property sold at retail, the retailer shall use a
schedule provided by the board, or a schedule approved by the board.
(d) The presumptions created by this section are rebuttable
presumptions.
(e) For purposes of this section, as applied to Part 14.5
(commencing with Section 33001) of Division 2 of the Revenue and
Taxation Code, sales tax reimbursement shall refer to reimbursement
for the tax imposed by that part, and tangible personal property
shall include ammunition as defined under that part.
SEC. 3. Title 7 (commencing with Section 14001) is
added to Part 4 of the Penal Code , to read:
TITLE 7. Public Safety Emergency Prevention Fund
14001. The Public Safety Emergency Prevention Fund is hereby
created in the State Treasury. All moneys raised pursuant to the
taxes imposed by Sections 33021 and 33022 of the Revenue and Taxation
Code shall be deposited in the Public Safety Emergency Prevention
Fund.
14002. All moneys in the fund shall, upon appropriation by the
Legislature, be expended by the Office of Emergency Services to
support public safety programs in high crime municipalities.
SEC. 4. Part 14.5 (commencing with Section 33001)
is added to Division 2 of the Revenue and Taxation Code
, to read:
PART 14.5. Ammunition Tax Law
CHAPTER 1. GENERAL PROVISIONS AND DEFINITIONS
33001. This part shall be known and may be cited as the
Ammunition Tax Law.
33002. For purposes of this part:
(a) "Ammunition" includes, but is not limited to, any bullet,
cartridge, or projectile capable of being fired from a firearm with a
deadly consequence. "Ammunition" does not include blanks.
(b) "Firearm" means a device, designed to be used as a weapon,
from which is expelled through a barrel, a projectile by the force of
an explosion or other form of combustion.
(c) "Retailer engaged in business in this state" has the same
meaning as defined in Section 6203.
33012. Unless the context otherwise requires, the definitions
provided in Chapter 1 (commencing with Section 6001) of Part 1 govern
the construction of this part.
CHAPTER 2. IMPOSITION OF TAX
33021. In addition to the tax imposed under Chapter 2 (commencing
with Section 6051) of Part 1, for the privilege of selling
ammunition at retail there is hereby imposed a tax upon all retailers
at the rate of 10 percent of the gross receipts of any retailer from
the sale of all ammunition sold at retail in this state on or after
January 1, 2014.
33022. (a) In addition to the tax imposed under Chapter 3
(commencing with Section 6201) of Part 1, an excise tax is hereby
imposed on the storage, use, or other consumption in this state of
ammunition purchased from any retailer on or after January 1, 2014,
for storage, use, or other consumption in this state at the rate of
10 percent of the sales price of the ammunition.
(b) Every person storing, using, or otherwise consuming in this
state ammunition purchased from a retailer is liable for the tax. His
or her liability is not extinguished until the tax has been paid to
this state except that a receipt from a retailer engaged in business
in this state or from a retailer who is authorized by the board,
under the rules and regulations as it may prescribe, to collect the
tax and who is, for the purposes of this part relating to the use
tax, regarded as a retailer engaged in business in this state, given
to the purchaser pursuant to subdivision (c) is sufficient to relieve
the purchaser from further liability for the tax to which the
receipt refers.
(c) Every retailer engaged in business in this state and making
sales for storage, use, or other consumption in this state, not
exempted under Chapter 3 (commencing with Section 33031), shall, at
the time of making the sales or, if the storage, use, or other
consumption of ammunition is not then taxable hereunder, at the time
the storage, use, or other consumption becomes taxable, collect the
tax from the purchaser and give to the purchaser a receipt therefor
in the manner and form prescribed by the board.
(d) The tax required to be collected by the retailer and any
amount unreturned to the customer which is not tax but was collected
from the customer under the representation by the retailer that it
was tax constitutes debts owed by the retailer to this state.
(e) It is unlawful for any retailer to advertise or hold out or
state to the public or to any customer, directly or indirectly, that
the tax or any part thereof will be assumed or absorbed by the
retailer or that it will not be added to the selling price of the
property sold or that if added it or any part thereof will be
refunded.
(f) The tax required to be collected by the retailer from the
purchaser shall be displayed separately from the list price, the
price advertised in the premises, the marked price, or other price on
the sales check or other proof of sales.
(g) Any person violating subdivision (c), (e), or (f) is guilty of
a misdemeanor.
CHAPTER 3. EXEMPTION
33031. There are exempted from the taxes imposed by this part,
the sale of, or the storage, use, or other consumption of, ammunition
purchased by any peace officer required to carry or use a firearm
that uses ammunition while on duty, or by any governmental law
enforcement agency employing that peace officer, for use in the
normal course of employment.
CHAPTER 4. COLLECTION AND ADMINISTRATION
33041. The board shall administer and collect the tax imposed by
this part pursuant to the Fee Collection Procedures Law (Part 30
(commencing with Section 55001)). For purposes of this part, the
references in the Fee Collection Procedures Law to "fee" shall
include the tax imposed by this part and references to "feepayer"
shall mean any person liable for the payment of the taxes imposed
under this part and collected pursuant to that law.
33042. The taxes imposed by this part are due and payable to the
board quarterly on or before the last day of the month next
succeeding each quarterly period of three months.
33043. On or before the last day of the month following each
quarterly period a return for the preceding quarterly period shall be
filed with the board.
CHAPTER 5. DISPOSITION OF PROCEEDS
33051. All amounts required to be paid under this part shall be
made in remittances to the board, and those revenues, net of refunds
and costs of administration, and shall be deposited in the Public
Safety Emergency Prevention Fund, established pursuant to Section
14001 of the Penal Code.
SEC. 5. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SEC. 6. This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.
SECTION 1. It is the intent of the Legislature
that would enact legislation to establish a tax on all ammunition
sold in retail stores and gun shows in the state and direct the
revenue from the tax to a high-crime prevention fund for crime
prevention efforts in high-crime areas of the state.