CA AB1687

Classifies qualified destination management companies as consumers rather than retailers for tangible personal property they provide to clients under qualified contracts, making the sale to the company subject to tax instead of the company's sale to clients.

Requires destination management companies to meet specific criteria including: being 80% engaged in destination management services, holding accreditation from the Association of Destination Management Executives, maintaining a California office, employing at least three full-time employees, and spending at least 1% of gross revenue annually marketing California tourism.

Limits the exemption to contracts with business entities (not individuals or social clubs) located outside the county where services are provided, and requires services to occur over two or more consecutive days.

Prohibits state reimbursement to local agencies for sales and use tax revenue losses resulting from this bill, notwithstanding existing reimbursement requirements under Section 2230 of the Revenue and Taxation Code.

Sunsets the provision on January 1, 2016, with the bill taking effect immediately as a tax levy but becoming operative 90 days after enactment.