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

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Date Published: 05/16/2017 09:00 PM
AB960:v98#DOCUMENT

Amended  IN  Assembly  May 16, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 960


Introduced by Assembly Member Brough

February 16, 2017


An act to add Section 6361.3 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 960, as amended, Brough. Sales and use taxes: exemptions: textbooks.
Existing sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law provides various exemptions from those taxes.
This bill would exempt from those taxes 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 education, as defined, 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. The bill would define certain terms for those purposes.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes cities and counties to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws.

Existing law requires the state to reimburse cities and counties for revenue losses caused by the enactment of sales and use tax exemptions.

This bill would provide that, notwithstanding these provisions, no appropriation is made and the state shall not reimburse cities and counties for sales and use tax revenues lost by them pursuant to this bill.

This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.

This bill would specify that this exemption would not apply to local sales and use taxes, transactions and use taxes, and specified state taxes from which revenues are deposited into the Local Public Safety Fund, the Local Revenue Fund, or the Local Revenue Fund 2011.
This bill would make these provisions operative on a specified date following the effective date of any budget measure that specifically appropriates funds to the State Board of Equalization for its costs of administering these provisions.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


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.

Notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse cities and counties for any sales and use tax revenues lost by them under this act.

SEC. 3.

This act provides for a tax levy within the meaning of Article IV of the California 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.

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.