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AB-217 Sales and use taxes: exemption: tax holiday: school supplies. (2021-2022)

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Date Published: 01/11/2021 09:00 PM
AB217:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 217


Introduced by Assembly Member Valladares

January 11, 2021


An act to add and repeal Section 6372 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 217, as introduced, Valladares. Sales and use taxes: exemption: tax holiday: school supplies.
Existing sales and use tax laws impose taxes 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, and provides various exemptions from the taxes imposed by those laws.
This bill would exempt from those taxes the gross receipts from the sale of, and the storage, use, or other consumption of, qualified school supplies, as defined, for the three-day period beginning at 12:01 a.m. on July 30, 2022, and ending at 11:59 p.m. on August 1, 2022.
Existing law requires a bill that would authorize a new tax expenditure under the Sales and Use Tax Law to identify specific goals, purposes, and objectives that the tax expenditure will achieve, and detailed performance indicators and data collection requirements for determining whether the tax expenditure achieves these goals, purposes, and objectives.
This bill would make findings specifying the goal, purpose, and objective of the sales and use tax exemption provided by this bill and the performance indicator to be used, and would require, on or before January 1, 2023, the California Department of Tax and Fee Administration to provide a report to the Assembly Revenue and Taxation Committee and the Senate Governance and Finance Committee on the use of the tax exemption.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities 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 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 any 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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 6372 is added to the Revenue and Taxation Code, to read:

6372.
 (a) There are exempted from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, qualified school supplies for the three-day period beginning at 12:01 a.m. on July 30, 2022, and ending at 11:59 p.m. on August 1, 2022.
(b) This section shall become inoperative on January 1, 2023, and as of that date is repealed.
(c) For purposes of this section, “qualified school supplies” means both of the following:
(1) Any of the following items that has a sales price of less than one hundred dollars ($100):
(A) Binders.
(B) Blackboard chalk.
(C) Book bags.
(D) Calculators.
(E) Cellophane tape.
(F) Compasses.
(G) Composition books.
(H) Crayons.
(I) Erasers.
(J) Folders, including expandable, pocket, plastic, and manila folders.
(K) Glue, paste, and paste sticks.
(L) Highlighters.
(M) Index cards.
(N) Index card boxes.
(O) Legal pads.
(P) Lunch boxes.
(Q) Markers, including dry erase markers.
(R) Notebooks.
(S) Paper, including loose leaf ruled notebook, copy, graph, tracing, manila, colored, and construction paper, and poster board.
(T) Pencil boxes and other school supply boxes.
(U) Pencil sharpeners.
(V) Pencils.
(W) Pens.
(X) Protractors.
(Y) Rulers.
(Z) Scissors.
(AA) Writing tablets.
(2) The first one thousand dollars ($1,000) of the total sales price for any of the following electronic items purchased for noncommercial home or personal use:
(A) Personal Computers.
(B) Laptops.
(C) Printers.
(D) Tablets.
(E) Chargers.
(F) Batteries.
(G) Computer mice.
(H) Keyboards.
(I) Laptop cases.
(J) WiFi routers.

SEC. 2.

 (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:
(1) The goal, purpose, or objective of Section 6372 of the Revenue and Taxation Code, as added by this act, hereafter “tax exemption,” is to relieve the financial burden for families and teachers buying school supplies.
(2) The performance indicator for the Legislature to use when measuring whether the tax exemption meets the goal, purpose, or objective specified in paragraph (1) is the number of sales made that qualified for the tax exemption.
(b) On or before January 1, 2023, the California Department of Tax and Fee Administration shall provide a report to the Assembly Revenue and Taxation Committee and the Senate Governance and Finance Committee on the use of the tax exemption. The report shall be provided in compliance with Section 9795 of the Government Code.

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 California Constitution and shall go into immediate effect.