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AB-219 Sales and use taxes: exemption: tax holiday: back-to-school items.(2021-2022)

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Date Published: 01/11/2021 09:00 PM
AB219:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 219


Introduced by Assembly Members Villapudua and Mathis
(Coauthors: Assembly Members Choi and Gipson)

January 11, 2021


An act to add Section 6370.3 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 219, as introduced, Villapudua. Sales and use taxes: exemption: tax holiday: back-to-school items.
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, on and after January 1, 2022, would exempt from those taxes the gross receipts from the sale of, and the storage, use, or other consumption of, back-to-school items that are purchased during the ____ weekend in ____, beginning at 12:01 a.m. on Saturday and ending at 11:59 p.m. on Sunday, by parents with schoolchildren, students attending a postsecondary institution, or educators.
Existing law requires a bill that would authorize a new tax exemption under the Sales and Use Tax Law to identify specific goals, purposes, and objectives that the tax expemption 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 state the intent of the Legislature to enact legislation to comply with those tax exemption requirements.
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.

 This act shall be known, and may be cited, as the “Back-to-School State Sales and Use Tax Holiday.”

SEC. 2.

 Section 6370.3 is added to the Revenue and Taxation Code, to read:

6370.3.
 On and after January 1, 2022, 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, back to school items that are purchased during the ____ weekend in ____, beginning at 12:01 a.m. on Saturday and ending at 11:59 p.m. on Sunday, by parents with schoolchildren, students attending a postsecondary institution, or educators.

SEC. 3.

 It is the intent of the Legislature to enact legislation to comply with the requirements of Section 41 of the Revenue and Taxation Code.

SEC. 4.

 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. 5.

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