Johnnie Lou Rosas 5/26/98
DEPARTMENTS THAT MAY BE AFFECTED:____ STATE MANDATE ____ GOVERNOR’S APPOINTMENTBoard Position:Agency Secretary Position:
GOVERNOR’S OFFICE USE
G:\BILL ANALYSES FOR MAREN\NOT CONVERTED\SB1908_051298.DOC06/12/98 11:53 AM
By: Date:Agency Secretary DateDepartment/Legislative Director Date____ S____ O____ SA____ OUA____ N____ NP____ NA____ NAR____X____ PENDING____ S____ O____ SA____ OUA____ N____ NP____ NA____ NARDEFER TO ____________Position Approved____Position Disapproved____Position Noted____DEPARTMENT AMENDMENTS ACCEPTED. Amendments reflect suggestions of previous analysis of bill asintroduced/amended _________.AMENDMENTS IMPACT REVENUE. A new revenue estimate is provided.AMENDMENTS DID NOT RESOLVE THE DEPARTMENT’S CONCERNS stated in the previous analysis of bill asintroduced/amended _________.FURTHER AMENDMENTS NECESSARY.DEPARTMENT POSITION CHANGED TO .REMAINDER OF PREVIOUS ANALYSIS OF BILL AS INTRODUCED/AMENDED ____________ STILL APPLIES.
OTHER - See comments below.
SUMMARY OF BILLThis bill would require the Legislative Analyst, on or before February 1, 1999,in consultation with the business community, the Franchise Tax Board (FTB), theState Board of Equalization (BOE), the Director of Finance (DOF), the League ofCalifornia Cities, and the California State Association of Counties, to prepareand deliver to the Legislature a report regarding taxation and businessactivities on the Internet.EFFECTIVE DATEContaining an urgency clause, this bill would become effective the date signed bythe Governor.SPECIFIC FINDINGSCurrently, no federal or state law exists specifically addressing the taxation ofbusiness activities conducted over the Internet.However,
has been introduced that would impose a three year“moratorium” on state and local taxes on electronic commerce. This moratoriumwould not apply to any taxes on Internet access or online services generallyimposed and actually enforced under state law before March 1, 1998.
Franchise Tax Board
ANALYSIS OF AMENDED BILL
LAO Consult With FTB and Other Entities/Taxation Of Internet BusinessActivity