HomeMy WebLinkAboutMINUTES - 04231985 - 1.37 1-13 i
TO: BOARD OF SUPERVISORS
Contra
FROM: Phil Batchelor, County Administrator
Costa
DATE: April 16 1985 County
P ►
SUBJECT: Legislation: AB 724 (Campbell)
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION•
Adopt a position in support of AB 724 by Assemblyman Robert
Campbell which would change the point at which a retail sale
occurs for purposes of crediting sales tax revenue from the
place of business to the place where the retailer manufactures
the property sold.
BACKGROUND:
Assemblyman Campbell has introduced AB 724 in response to a
situation which occurred in the City of Richmond in 1983 when a
large sale of fuel oil was made by Chevron to P. G. & E. Under
current interpretations of the law, the State Board of
Equalization credited the sales tax from this transaction to
the City and County of San Francisco where the sale was
negotiated rather than to the City of Richmond where the fuel
oil was manufactured.
AB 724 would correct this interpretation by clearly indicating
that in instances where a retailer' s place of manufacture is
located in this State, where the gross receipts from a sale
exceeds $1 million and the property is not intended for
delivery to an out-of-State destination, the sales tax is to be
credited at the point of manufacture regardless of where the
corporate headquarters of the company are and/or a particular
contract of sale is negotiated.
AB 724 clearly will benefit any jurisdiction which has within
its boundaries a substantial amount of manufacturing, but where
the headquarters of the company are located in another city or
county. This is particularly the case in Contra Costa County
with the oil refineries and other similar heavy industry. It
seems only appropriate that since the residents of the County
and cities must deal with the sometimes negative image of
having heavy industry plants within their jurisdiction, they
should at least benefit through the sales tax from the presence
of those plants rather than having all of the sales tax
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
X APPROVE OTHER
SIGNATURE(S) �J' "4 6/Z&U1
ACTION OF BOARD ON pr> 1 23, APPROVED AS RECOMMENDED OTHER X
REQUESTED that the County Administrator send letters 'to the cities in
the County on'-.this legislation.
VOTE OF SUPERVISORS
X_ UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
County Administrator OF SUPERVISORS ON
ONTHE DATE SHOWN.
CC: County Auditor ATTESTED La�wl{lJL(JL�
Assemblyman Robert Campbell PHIL BATCHELOR, CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
M382/7-69 BY DEPUTY
Page 2
proceeds go to those jurisdictions which happen to house the
corporate headquarters of those companies.
The Contra Costa Taxpayers Association has endorsed AB 724.
Given the amount of manufacturing which goes on in this County,
and the relative lack of corporate headquarters located within
the County, our office also recommends support for AB 724.