CA SB1373

Deems construction contractors who fabricate, manufacture, process, or produce aggregate-based materials (rock, sand, asphalt, or concrete) as retailers of those materials when permanently incorporated into construction projects, effective for contracts awarded on or after April 1, 2011.

Includes gross receipts from the deemed retail sale of aggregate-based materials in the measure of state and local sales and use taxes.

Excludes from taxation the reuse or recycling of aggregate-based materials originating from the construction site, and fill dirt or sand materials that are not purchased by the contractor and are not processed.

Specifies that gross receipts are determined by either the price the contractor charges other contractors for similar materials in similar quantities, or if not sold to others, the amount in the contractor's price lists, bid sheets, or other records.

Requires a 2/3 vote for passage as the bill results in a change in state taxes to increase state revenues under the California Constitution.