Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2017

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

CHAPTER 1. Taxation Base

Article 1. Taxable and Exempt Property

Section 241

241. Employee-owned hand tools. (a) The first fifty thousand dollars ($50,000) of personal property that consists of hand tools owned and supplied by an employee that are required as a condition of that employee's employment are exempt from taxation.

(b) For purposes of this section:

(1) "Hand tools" means hand-held implements and equipment, including hand-held power tools, of which any one may be transported to and from the workplace and which are necessary for the ordinary and regular performance of the employee's work, and also means the appropriate storage containers used to store those implements and that equipment.

(2) "Hand tools owned and supplied by an employee" means only those hand tools that are either owned by the employee prior to the employment or acquired and paid for by the employee during the employment, that the employee will continue to own after termination of the employment.

(3) "Employee" means any individual who is employed by an employer that directly or indirectly supervises that person and exercises control over the wages and working conditions of individual workers. "Employee" does not include a self-employed individual or an independent contractor.

History.—Added by Stats. 1994, Ch. 527, in effect September 12, 1994. Stats. 2001, Ch. 161 (AB 136), in effect August 9, 2001, substituted "fifty" for "twenty" after "The first" and substituted "($50,000)" for "($20,000)" after "dollars" in the first sentence of subdivision (a).

Note.—Section 2 of Stats. 2001, Ch. 161 (AB 136), provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.