HomeMy WebLinkAboutMINUTES - 05091989 - 1.33 033
TO: Board of Supervisors
FROM: Phil Batchelor, County Administrator e
DATE: May 1, 1989 SrA °UKP
SUBJECT: LEGISLATION: SB 140 (Kopp)
Specific Request(s) or Recommendations(s) & Background & Justification
RECOMMENDATION:
Adopt a position in SUPPORT of SB 140 by Senator Quentin Kopp which would exempt local governments and
the state from paying sales tax on all purchases over$1000.
BACKGROUND:
Under current law the County pays sales tax on all of its purchases which are subject to the sales tax,just as any
individual or corporation does. There is a long-standing tradition that various levels of government do not tax each
other since to do so just pushes tax receipts around among various levels of government. The County pays no property
tax on land it owns and pays no vehicle in-lieu taxes on its vehicles. The County pays no state or federal income
tax on its investments. The State likewise pays no property,motor vehicle or income taxes. One of the last remaining
tax which both the State and local governments pay to each other is the sales tax.
Senator Kopp has introduced SB 140 which would exempt the State and all levels of local government from paying
sales tax on all purchases over$1000. This makes sense since the money comes from tax proceeds and is simply
split up again among various levels of government. Since the County purchases approximately$20 million of sales
taxable items each year,after taking into account the minimal loss in sales tax revenue to the County,it is estimated
that the County would save about $1 million each year from the passage of SB 140.
In view of this savings it is recommended that the Board of Supervisors indicate its support for SB 140.
CONTINUED ON ATTACHMENT: NO SIGNATURE:
Recommendation of County Administrator Recommendation of Board Committee
Approve Other:
Signature(s):
e&14h-
Action of Board on: May 9,1989 Approved as Recommended Other
Vote of Supervisors
I HEREBY CERTIFY THAT THIS IS A TRUE AND
_Unanimous(Absent ) CORRECT COPY OF AN ACTION TAKEN AND
Ayes: Noes: ENTERED ON HE MINUTES OF THE BOARD
Absent: Abstain: OF SUPERVISORS ON DATE SHOWN.
cc: County Administrator ATTESTED MAY 9 1989
Director of General Services PHIL BATCHELOR,CLERK OF THE BOARD
Auditor-Controller SUPERVISORS AND COUNTY ADMINISTRATOR
Assistant Administrator-Finance
Senator Quentin Kopp BY- ,Deputy Clerk
Les Spahnn,JacksonBarish&Associates 49
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