The Sales and Use Tax Law exempted, until July 15, 1991, from the taxes imposed by that law, the gross receipts from the sale of and the storage, use, or other consumption in this state of tangible personal property that becomes an ingredient or component part of a specified type of newspaper or periodical, and any such newspaper or periodical.
This bill would exempt from sales and use taxes the gross receipts from the sale of and the storage, use, or other consumption in this state of tangible personal property that becomes an ingredient or component part of a specified type of newspaper or periodical distributed without charge, and any such newspaper or periodical.
Counties and cities are authorized to impose local sales and use taxes in conformity with state sales and use taxes. Exemptions from state sales and use taxes enacted by the Legislature are automatically incorporated into the local taxes.
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 no appropriation is made and that 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.