Bill Text: CA AB289 | 2011-2012 | Regular Session | Introduced

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

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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-Introduced.html

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BILL NUMBER: AB 289	INTRODUCED
	BILL TEXT


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, as introduced, Cedillo. Sales and use tax exemption:
charitable thrift stores.
   The Sales and Use Tax Law imposes a tax on the gross receipts from
the sale in this state of, or the storage, use, or other consumption
in this state of, tangible personal property. 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 This exemption will be repealed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 repeal that repeal date, thereby extending the
operation of the exemption indefinitely.
   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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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 cease to be operative on January 1, 2012,
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.