Today's Law As Amended


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AB-1120 Sales and use taxes: exemptions: oak barrels.(2019-2020)



As Amends the Law Today


SECTION 1.

 Section 6359.9 is added to the Revenue and Taxation Code, to read:

6359.9.
 (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 new or used oak barrel to a person who purchases that oak barrel for the purpose of incorporating oak into distilled spirits. The bill would repeal this exemption on January 1, 2025.
(b) This section shall become inoperative on January 1, 2025, and as of that date is repealed.
SEC. 2.
 The Legislature finds and declares the following with respect to Section 6359.9 of the Revenue and Taxation Code:
(a) The specific goals, purposes, and objectives that the exemption from sales and use taxes allowed by this act will achieve are as follows:
(1) Relieving part of the significant financial burden that distillers face trying to craft their product.
(2) Reducing the number of loans distillers must take out in order to brew their product with the appropriate ingredients and infrastructure.
(b) Detailed performance indicators for the Legislature to use in determining whether the exemption from sales and use taxes allowed by this act meets those goals, purposes, and objectives shall be the number of people receiving the exemption.
(c) The Legislative Analyst shall, on an annual basis beginning January 1, 2021, until January 1, 2026, collaborate with the California Department of Tax and Fee Administration to review the effectiveness of the exemption allowed by Section 6359.9 of the Revenue and Taxation Code. The review shall include, but not be limited to, an analysis of the demand for the exemption and the economic impact of the exemption.
(d) The data collection requirements for determining whether the exemption from sales and use taxes allowed by this act is meeting, failing to meet, or exceeding those specific goals, purposes, and objectives are as follows:
(1) To assist the Legislature in determining whether the exemption allowed by this act meets the goals, purposes, and objectives specified in subdivision (a), and in carrying out their duties under subdivision (c), the Legislative Analyst may request information from the California Department of Tax and Fee Administration.
(2) The California Department of Tax and Fee Administration shall provide any data requested by the Legislative Analyst pursuant to this subdivision.
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. 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.