Bill Text: CA AB1280 | 2015-2016 | Regular Session | Introduced

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Bill Title: Sales and use taxes: exemption: tax holiday: small businesses.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1280 Detail]

Download: California-2015-AB1280-Introduced.html

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BILL NUMBER: AB 1280	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Maienschein

                        FEBRUARY 27, 2015

   An act to add Section 6372 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1280, as introduced, Maienschein. Sales and use taxes:
exemption: tax holiday: small businesses.
   Existing sales and use tax laws impose taxes 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,
and provides various exemptions from the taxes imposed by those
laws.
   This bill would exempt from those taxes the gross receipts from
the sale of, and the storage, use, or other consumption of, tangible
personal property sold by, or purchased from, a retailer that is a
small business, as defined, on the Saturday following Thanksgiving
beginning in 2016.
   The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes
counties and cities to impose local sales and use taxes in conformity
with the Sales and Use Tax Law, and existing law authorizes
districts, as specified, to impose transactions and use taxes in
accordance with the Transactions and Use Tax Law, which conforms to
the Sales and Use Tax Law. Exemptions from state sales and use taxes
are incorporated into these laws.
   This bill would specify that this exemption does not apply to
local sales and use taxes and transactions and use taxes.
   This bill would take effect immediately as a tax levy. However,
the provisions of this act shall become operative on January 1, 2016.

   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 6372 is added to the Revenue and Taxation Code,
to read:
   6372.  (a) There are exempted from the taxes imposed by this part,
the gross receipts from the sale of, and the storage, use, or other
consumption in this state of, tangible personal property sold by, or
purchased from, a retailer that is a small business, for the one-day
period beginning at 12:01 a.m. on the Saturday following Thanksgiving
and ending at midnight on that same day.
   (b) For the purposes of this section, the following shall apply:
   (1) "Small business" shall mean a retailer that remitted to the
board less than two hundred thousand dollars ($200,000) in tax for
the previous four calendar quarters.
   (2) "Small business" also means a retailer that has been in
operation for less than four calendar quarters and remitted less than
an average of fifty thousand dollars ($50,000) in tax for each
calendar quarter of operation.
   (c) Notwithstanding any provision of the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200))
or the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251)), the exemption established by this section does not
apply with respect to any tax levied by a county, city, or district
pursuant to, or in accordance with, either of those laws.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
However, the provisions of this act shall become operative on January
1, 2016.