HomeMy WebLinkAboutMINUTES - 07281987 - 1.32 1-03
TO BOARD OF SUPERVISORS
FROM: PHIL BATCHELOR, County Administrator Contra
Costa
DATE*. July 20, 1987 County
SUBJECT: LEGISLATION - AB2446 (EASTIN)
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND Alm JUSTIFICATION
RECOMMENDATION•
Adopt a position in support of AB2446 by Assemblywoman Eastin which would
require automobile, aircraft and boat dealers to collect the proper
transaction and use tax depending on the address where the vehicle is
registered, regardless of where the vehicle, aircraft or boat is purchased.
BACKGROUND:
Under current law a retailer is not required to collect the additional
transaction and use (sales) tax where a purchaser purchases a vehicle
outside of a county which has a sales tax rate in excess of 6% but lives in
and registers the vehicle, aircraft or boat in a county which has a sales
tax in excess of 6%. The only exception is if the retailer ships or
delivers the property into the county with the higher sales tax or solicits
or receives the order in the County with the higher sales tax. This
situation has the potential of encouraging individuals to purchase a
vehicle, aircraft or boat in a county with a 6% sales tax even though the
individual lives in and registers the property in a county with a 62% or 7%
sales tax. This results in the retailer in a county with a higher sales
tax losing business to retailers in counties with a lower sales tax. The
difference in price to the individual can run to several hundreds of
dollars on the purchase of a new car, aircraft or boat, particularly where
the sales tax difference is a full one percent.
This was a concern that was expressed by a number of automobile dealers
when Measure C to increase the sales tax in Contra Costa County was pending
a year ago. At that time the Board asked that efforts be made to correct
this situation and require the retailer to collect the tax due depending on
where the property was to be registered, rather than the tax due where the
property was purchased.
Assemblywoman Eastin has introduced AB2446 which corrects this inequitable
situation by requiring the tax to be collected by the retailed based on
where the property will be registered. In view of the Board' s previously
expressed position on this issue it is recommended that the Board support
AB2446. AB2446 has successfully passed the Assembly and is currently on
the Senate floor pending its final vote before going to the Governor for
his consideration.
CONTINUED ON ATTACHMENT: _ YES SIGNATURE:
i
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S): Z 164C,�'L L
ACTION OF BOARD ON July 28, 1987 APPROVED AS RECOMMENDED x OTHER
VOTE OF SUPERVISORS
1 HEREBY CERTIFY THAT THIS IS A TRUE
x UNANIMOUS (ABSENT AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
County' Admi;nsitratox Jul 28 1987
CC,. Barbara Neus:tadter, Com. Dev. ATTESTED y
Don Bouchet, Auditor-Controller PHIL BATCHELOR, CLERK OF THE BOARD OF
Jackson/Baxi,sF- & Associate:s SUPERVISORS AND COUNTY ADMINISTRATOR
Senator Boatwright
Senator Petris
M382/7-83 Assemblywoman Eastin B ,DEPUTY