Legislative Update: Assembly Revenue & Taxation Committee

AB 155 (Calderon): This bill would expand the statutory definition of a "retailer engaged in business in this state" to improve administration of the state's use tax.  Specifically, AB 155 would impose a use tax collection obligation on any retailer that is a member of a commonly controlled group, as defined, and is a member of a combined reporting group, as defined, that includes another member of the retailer's commonly controlled group that performs services in this state in connection with tangible personal property (TPP) to be sold by the retailer.  Qualifying services include, without limitation, the design and development of TPP sold by the retailer, or the solicitation of sales of TPP on the retailer's behalf. In addition, the bill would delete the statutory provisions that would, upon the enactment of authorizing federal legislation, impose a use tax collection obligation on any retailer soliciting orders for TPP by mail if the solicitations are substantial and recurring and if other specified conditions are met.

AB 155 was placed on the Suspense File due to the cost of implementation.

AB 236 (Swanson): This bill would expand the existing hiring credit for small businesses.  AB 236 would allow, for taxable years beginning on or after January 1, 2011, an expanded $5,000 credit for each net increase in "qualified full-time employees" hired during the taxable year by a qualified employer.  For purposes of this expanded credit, a "qualified full-time employee" is defined as an individual who meets the criteria for the existing hiring credit and who is either an ex-offender who was convicted of a felony, or a person who has been unemployed for 12 or more consecutive months prior to being hired.

AB 236 was placed on the Suspense File due to cost of implementation.

AB 304 (Knight): This bill would allow a tax credit, under both the Personal Income Tax Law and the Corporation Tax Law, for each "qualified employee" employed by a "qualified employer," as specified.

AB 304 was placed on the Suspense File due to cost of implementation.

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