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SB-3 Sales and use taxes: exemption: veterans memorial lapel pins.(1995-1996)

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Senate Bill No. 3
CHAPTER 316

An act to add Section 6360.1 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

[ Filed with Secretary of State  August 03, 1995. Approved by Governor  August 03, 1995. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 3, Thompson. Sales and use taxes: exemption: veterans memorial lapel pins.
The Sales and Use Tax Law imposes taxes on the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, tangible personal property. Existing law also provides various exemptions from those taxes.
This bill would establish an additional exemption from those taxes for the gross receipts from the sale in this state of, or the storage, use, or other consumption in this state of, certain veterans memorial lapel pins by any corporation established pursuant to specified provisions of federal law. This bill would make legislative findings and declarations with respect to this exemption.
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 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 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 6360.1 is added to the Revenue and Taxation Code, to read:

6360.1.
 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 “Buddy Poppy” or any other symbolic, impermanent lapel pin that memorializes United States military veterans killed in foreign wars of the United States, by any corporation established by the Congress of the United States pursuant to Chapter 7A (commencing with Section 111) of Title 36 of the United States Code, or any of that corporation’s subordinate state or territorial subdivisions, local chapters, posts, or auxiliaries.

SEC. 2.

 The Legislature hereby finds and declares that the sale or use of Buddy Poppies is worthy of an exemption from sales and use taxation in recognition of the work done by the Veterans of Foreign Wars and others on behalf of disabled veterans. The Legislature also finds and declares that the “Buddy Poppy” program is one of the most successful and widely known fundraisers for disabled veterans. During 1993–94, 8,000,000 of the handcrafted flowers were sold, raising $1.6 million for veterans’ rehabilitation, and children and youth programs nationwide.

SEC. 3.

 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. 4.

 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.