Bill Text: CA AB289 | 2011-2012 | Regular Session | Chaptered
Bill Title: Sales and use taxes: exemption: charitable thrift stores.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2011-09-21 - Chaptered by Secretary of State - Chapter 289, Statutes of 2011. [AB289 Detail]
Download: California-2011-AB289-Chaptered.html
BILL NUMBER: AB 289 CHAPTERED
BILL TEXT
CHAPTER 289
FILED WITH SECRETARY OF STATE SEPTEMBER 21, 2011
APPROVED BY GOVERNOR SEPTEMBER 20, 2011
PASSED THE SENATE AUGUST 30, 2011
PASSED THE ASSEMBLY MAY 31, 2011
AMENDED IN ASSEMBLY MAY 24, 2011
INTRODUCED BY Assembly Member Cedillo
FEBRUARY 8, 2011
An act to amend Section 6363.3 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 289, Cedillo. Sales and use taxes: exemption: charitable thrift
stores.
The Sales and Use Tax Law imposes on retailers measured by the
gross receipts from the sale 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. The law provides various exemptions from this tax,
including an exemption for retail items sold by thrift stores
operated by nonprofit organizations, if the purpose of that thrift
store is to obtain funding for medical, hospice, or social services
provided to individuals with HIV or AIDS by the nonprofit
organization. This exemption will be repealed January 1, 2012.
This bill would extend that repeal date to January 1, 2019.
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.
Section 2230 of the Revenue and Taxation Code provides that the
state will 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 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6363.3 of the Revenue and Taxation Code is
amended to read:
6363.3. (a) There are exempted from the taxes imposed by this
part, the gross receipts from the sale in this state of, and the
storage, use, or other consumption in this state of, used pieces of
clothing, household items, or other retail items sold by thrift
stores operated by a nonprofit organization if the purpose of that
thrift store is to obtain revenue for the funding of medical,
hospice, or social services to chronically ill individuals, and at
least 75 percent of the net income derived from operations of the
thrift store are actually expended for the purpose of providing
medical, hospice, or social services to the chronically ill.
(b) For purposes of this section, "nonprofit organization" means
an organization that provides medical, hospice, or social services to
individuals with a chronic, life-threatening illness, as defined in
subdivision (c) of Section 1568.01 of the Health and Safety Code, and
is exempt from taxation under Section 23701d.
(c) This section shall remain in effect only until January 1,
2019, and as of that date is repealed.
SEC. 2. Notwithstanding Section 2230 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse any local agency for any sales and use tax revenues lost by
it under this act.
SEC. 3. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
