State Board of Equalization: sales and use taxes: administration: transportation charges: public contracts with expatriate corporations: tax treaty.

The Sales and Use Tax Law imposes a tax on retailers measured by gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, measured by the sales price of the property. That law provides various exclusions from gross receipts and sales price, including an exclusion for separately stated charges for transportation from the retailer's place of business or other point from which shipment is made directly to the purchaser, as specified. This bill would state that charges for transportation are separately stated when stated as a single amount and not combined in a single amount with other charges. Existing law regarding contracting between state agencies and private contractors sets forth requirements for the procurement of materials, supplies, equipment, and services by state agencies. Existing law sets out the various responsibilities of the Department of General Services, and other state agencies, in overseeing and implementing state contracting procedures and policies. Existing law prohibits a state agency from entering into any contract with an expatriate corporation, as defined, or its subsidiary, unless certain conditions are met. Existing law defines an expatriate corporation as a foreign incorporated entity that is publicly traded in the United States and that meets specified criteria. This bill would revise the definition of an expatriate corporation to also require that the entity be domiciled in a jurisdiction that does not have an income tax treaty with the United States.