Bill Text: CA AB1776 | 2019-2020 | Regular Session | Introduced

California Assembly Bill 1776 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Sales and use taxes: exemptions: newspapers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2020-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1776 Detail]

Download: California-2019-AB1776-Introduced.html

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 1776

Introduced by Assembly Member Levine

February 22, 2019

An act to add Section 6362 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL'S DIGEST

AB 1776, as introduced, Levine. Sales and use taxes: exemptions: newspapers.

Existing state 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. The Sales and Use Tax Law provides various exemptions from those taxes, including an exemption for the sale of, or the storage, use, or consumption of, newspapers and periodicals published by an organization that qualifies for tax-exempt status and meets specified requirements, and an exemption for the sale of, or the storage, use, or consumption of, a newspaper or periodical distributed at specified intervals without charge. Until July 15, 1991, existing law provided for the sale of, or the storage, use, or consumption of, any newspaper or periodical regularly issued at specified intervals, any tangible property that becomes an ingredient or component part of that newspaper or periodical, and any photograph transferred under specified conditions for the purpose of being reproduced in that newspaper.

This bill, on and after January 1, 2020, would reinstate the exemption from those taxes on the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, photographs transferred under specified conditions for the purpose of being reproduced in that newspaper, and would make an exemption from those taxes on the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, newspapers.

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.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 6362 is added to the Revenue and Taxation Code, to read:

6362.

(a) On and after January 1, 2020, 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, any newspaper regularly issued at average intervals not exceeding three months or any tangible personal property that becomes an ingredient or component part of the newspaper.

(b) On and after January 1, 2020, there is 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, a photograph, whether or not produced to special order, when the possession, but not the title, of the photograph is transferred for the purpose of being reproduced one time only in a newspaper pursuant to subdivision (a).

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.