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Governor Vetoes Bill to Collect Taxes on Prepaid Mobile Services

October 15, 2013
Last week Gov. Jerry Brown vetoed AB 300 (Perea), a bill that would have established a collection method for state and local taxes and fees levied on consumers of prepaid mobile telephone services.
 
Without AB 300, there is no standard or reliable process for cities to collect utility users taxes on prepaid mobile services. While the League didn’t take an officials position on the bill this year, legislative representatives were active in negotiations to act as a conduit for all California cities and ensure the final product contains workable policies.

In his veto message, the Governor called the bill duplicative and complex, and said the bill would result in significant and unnecessary costs to the state. He asked the author to work on a more cost effective solution. 
 
The League will be meeting with the Governor’s office and other stakeholders over the legislative interim recess to discuss next steps for the bill. For more information on AB 300, please see Collection Method for Taxes on Prepaid Mobile Services Sent to Governor,” CA Cities Advocate, Sept. 19, 2013.


 
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