Store Research

ASSEMBLY BILL 11 (PETRIS � 1966)

CHAPTER 2, STATUTES OF 1966

Some bill research does not include the Governor's file because at the time we researched the bill, the sitting Governor had not released his chaptered bill file. If the Governor's file is not included with this particular research, please contact our office (1-530-666-1917 or quote@legintent.com) and we will be happy to provide this file at no charge if it is available. Please Note: Governor files did not exist prior to 1943.

Revenue and Taxation Code sections 67092, 6094, 6242 and 25101 were amended, and section 6406 and provisions for the Uniform Division of Income for Tax Purposes Act, beginning with new section 25120, were added to the Revenue and Taxation Code in 1966 following legislative passage of Assembly Bill 11. (See Exhibit A, #1c) This measure was introduced by Assembly member Nicholas Petris on March 22, 1966. (See Exhibit A, #1a)

Assembly Bill 11 was heard by the Assembly and Senate Committees on Revenue and Taxation. (See Exhibit A, #2) The bill was amended once during the legislative process. (See Exhibit A, #1b and #2) Following unanimous passage by

both Houses, Assembly Bill 11 was sent to Governor Edmund G. Brown who signed the measure on April 13, 1966. The Secretary of State recorded Assembly Bill 11 as Chapter 2 of the Statutes of 1966. (See Exhibit A, #1c and #2)

Section 8 of the bill discussed when the various provisions of the bill became effective. (See Exhibit A, #1c, page 181)

An Enrolled Bill Report analysis prepared for the Governor by the Department of Finance provided the following summary of the provisions in Assembly Bill 11:

This bill seeks to correct some of the objections to current practices of the various states in the taxation of multistate operations. It adopts for California a credit against the State and local use taxes for sales or use taxes paid to another state or its political subdivision, and it also adopts the provisions of the “Uniform Division of Income for Tax Purposes Act.” The latter was promulgated by the National Conference of Commissioners on Uniform State Laws as a substitute for the “Interstate Taxation Act” currently before Congress (Willis Subcommittee recommendation). The proposal also relieves retailers from liability for sales tax or collection of use tax if the retailer obtains a valid resale certificate in good faith.

(See Exhibit A, #7, document PE-2)