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SB-1450 Sales and use taxes: exemptions: thrift stores operated by nonprofit organizations on military installations.(2007-2008)

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SB1450:v98#DOCUMENT

Amended  IN  Assembly  June 24, 2008

CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Senate Bill
No. 1450


Introduced  by  Senator Dutton
(Principal Coauthor(s): Senator Kehoe)

February 21, 2008


An act to add and repeal Section 6363.4 to of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


SB 1450, as amended, Dutton. Sales and use taxes: exemptions: thrift stores operated by nonprofit organizations on military installations.
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. That law provides various exemptions from that tax.
This bill would, through December 31, 2012, exempt from sales and use tax, the sale of tangible personal property by a nonprofit organization that operates a thrift store on a military installation, whose purpose is to assist members of the Naval Services of the United States, and eligible family members and survivors.
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, 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.

This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 6363.4 is added to the Revenue and Taxation Code, to read:

6363.4.
 (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, tangible personal property sold by a thrift store located on a military installation and operated by a nonprofit organization.(b) organization.
(b) For purposes of this section, “nonprofit organization” means an organization, exempt from taxation under Section 23701d, that, in partnership with the Navy and Marine Corps, provides financial, educational, and other assistance to members of the Naval Services of the United States, eligible family members, and survivors that are in need.
(c) This section shall remain in effect through and including December 31, 2012, and shall be repealed on January 1, 2013.

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.

SEC. 3.

 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act.