Today's Law As Amended

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AB-960 Sales and use taxes: exemptions: textbooks.(2017-2018)



SECTION 1.

 Section 6361.3 is added to the Revenue and Taxation Code, to read:

6361.3.
 (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, a textbook purchased by a student from an institution of higher education or sold by a person whose primary purpose is to provide textbooks to students attending institutions of higher education, for use as a learning resource in any course of study at an institution of higher education.
(b) A student shall present a valid student identification card or a proof of enrollment issued by an institution of higher education in order to receive the benefit of this textbook sales exemption.
(c) For purposes of this section, all of the following apply:
(1) “Institution of higher education” means a public or private college or university that is nationally or regionally accredited or a postsecondary educational institution as defined in Section 66261.5 of the Education Code as added by Chapter 914 of the Statutes of 1998.
(2) “Primary purpose” means that at least 50 percent of all books sold by the entity fit the definition of textbook in subparagraph (A) of paragraph (3).
(3) (A) “Textbook” means any published material that is assigned for use by a student at any institution of higher education as a source of instructional material, and includes, but is not limited to, any book or edition of a book, as so described, that is required or recommended by an instructor at an institution of higher education for use as a basis for a course of study at that institution.
(B) “Textbook” does not include books on audio tape, computer disc, CD-ROM, or similar storage media.
(d) (1) 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 shall not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws.
(2) Notwithstanding subdivision (a), the exemption established by this section shall not apply with respect to any tax levied pursuant to Section 6051.2 or 6201.2, any tax levied pursuant to Section 6051 or 6201 that is deposited into the State Treasury to the credit of the Local Revenue Fund 2011 pursuant to Section 6051.15 or 6201.15, or any tax levied pursuant to Section 35 of Article XIII of the California Constitution.
(e) This section shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of any budget measure that specifically appropriates funds to the board for its costs of administering this section.
SEC. 2.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.