Bill Text: CA AB1072 | 2017-2018 | Regular Session | Amended
Bill Title: Sales and use taxes: exclusion: garment alterations.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2018-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1072 Detail]
Download: California-2017-AB1072-Amended.html
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Amended
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May 18, 2017 |
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April 17, 2017 |
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March 21, 2017 |
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Assembly Bill | No. 1072 |
| Introduced by Assembly Member Brough |
February 16, 2017 |
An act to add Section 6010.17 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1072, as amended, Brough.
Sales and use taxes: exclusion: garment alterations.
Existing sales and use tax laws impose a tax on retailers measured by the 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. Existing law defines “sale” and “purchase” for these purposes and provides certain exclusions from those definitions.
This bill bill, before January 1, 2023, would provide that “sale” and “purchase” do not include alterations to new or used garments if the alteration occurs after the retail sale of the new garment, the person
performing the alteration was not the retailer of the new garment, and the person performing the alteration does not have an agreement with a clothing retailer to perform alterations for the clothing retailer or the clothing retailer’s customers, thus excluding the purchase or sale of those alterations from imposition of sales and use tax. As a result, the retail sale subject to tax would be the sale of tangible personal property used or furnished in the alteration to the person who performs the alteration.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes cities and counties to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local
tax laws.
Existing law requires the state to reimburse cities and counties for revenue losses caused by the enactment of sales and use tax exemptions.
This bill would provide that, notwithstanding these provisions, no appropriation is made and the state shall not reimburse cities and counties for sales and use tax revenues lost by them pursuant to this bill.
This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 6010.17 is added to the Revenue and Taxation Code, to read:6010.17.
(a)(1) The alteration occurs after the retail sale of the new garment.
(2) The person performing the alteration was not the retailer of the new garment.
(3) The person performing the alteration does not have an agreement with a clothing retailer to perform alterations for the clothing retailer or the clothing retailer’s customers.
(b) For the purpose of this section, “new garment” means a garment that was not worn except for trying on or fitting.
