Bill Text: CA AB2274 | 2023-2024 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Taxation: sales and use taxes: exemption: school supplies tax holiday.
Spectrum: Partisan Bill (Republican 7-0)
Status: (Introduced - Dead) 2024-04-01 - In committee: Set, second hearing. Hearing canceled at the request of author. [AB2274 Detail]
Download: California-2023-AB2274-Introduced.html
Bill Title: Taxation: sales and use taxes: exemption: school supplies tax holiday.
Spectrum: Partisan Bill (Republican 7-0)
Status: (Introduced - Dead) 2024-04-01 - In committee: Set, second hearing. Hearing canceled at the request of author. [AB2274 Detail]
Download: California-2023-AB2274-Introduced.html
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 2274
| Introduced by Assembly Member Dixon (Coauthors: Assembly Members Alanis, Davies, Flora, Gallagher, Sanchez, and Waldron) |
February 08, 2024 |
An act to add Section 6370.3 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2274, as introduced, Dixon.
Taxation: sales and use taxes: exemption: tax holiday.
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, on and after January 1, 2025, would exempt from those taxes the gross receipts from the sale of, and the storage, use, or other consumption of, any tangible personal property purchased during the first weekend in August, beginning at 12:01 a.m. on Saturday and ending at 11:59 p.m. on Sunday.
Existing law requires a bill that would authorize a new tax exemption under the Sales and Use Tax Law to
identify specific goals, purposes, and objectives that the tax exemption will achieve, and detailed performance indicators and data collection requirements for determining whether the tax expenditure achieves these goals, purposes, and objectives.
This bill would include information complying with that requirement.
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 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 counties and cities for revenue losses caused by the
enactment of sales and use tax exemptions.
This bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse any local agencies for sales and use tax revenues lost by them pursuant to this bill.
This bill would take effect immediately as a tax levy.
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 6370.3 is added to the Revenue and Taxation Code, to read:6370.3.
(a) Notwithstanding any law, on and after January 1, 2025, 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, any tangible personal property purchased during the first weekend in August, beginning at 12:01 a.m. on Saturday and ending at 11:59 p.m. on Sunday.(b) (1) For purposes of complying with Section 41, the Legislature finds and declares the following:
(A) The specific goals, purposes, and objectives of this act are:
(i) To ease the financial burden placed on families.
(ii) To incentivize families to continue to make necessary purchases.
(B) The performance indicator for the Legislature to use in determining if the tax exemption achieves the stated goals, purposes, and objectives is the California Department of Tax and Fee Administration’s estimate of utilization of the exemption.
(2) (A) To measure the goals set forth in paragraph (1), the California Department of Tax and Fee Administration shall estimate the utilization of the exemption and report to the Legislature, in compliance with Section 9795 of the Government Code, on its findings. The report shall also provide a recommendation regarding continuation of the exemption to achieve those goals.
(B) The report shall be provided to the
Legislature by July 1, 2026, and annually thereafter.
(C) The disclosure requirements of this paragraph shall be treated as an exception to Section 7056.5 of the Revenue and Taxation Code.
