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AB-3349 Sales and use taxes: exemptions: breast pumps and related supplies.(2019-2020)

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Date Published: 04/29/2020 09:00 PM
AB3349:v98#DOCUMENT

Amended  IN  Assembly  May 04, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 3349


Introduced by Assembly Member Cervantes

February 21, 2020


An act to amend Section 18900.1 of add and repeal Section 6370.2 of the Revenue and Taxation Code, relating to taxation. taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 3349, as amended, Cervantes. Voluntary tax contribution: State Parks Protection Fund. Sales and use taxes: exemptions: breast pumps and related supplies.
Existing state 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, on and after January 1, 2022, and before January 1, 2027, would exempt the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, breast pumps, breast pump collection and storage supplies, breast pump kits, and breast pads.
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 state the intent of the Legislature to enact legislation to comply with those new tax expenditure 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.

Existing law authorizes an individual to contribute amounts in excess of the individual’s personal income tax liability for the support of specified funds, including the State Parks Protection Fund. Existing law requires, for each taxable year beginning on or after January 1, 2012, the Franchise Tax Board to revise the individual taxpayer return form to allow a taxpayer to designate an amount in excess of tax liability to be deposited to the State Parks Protection Fund. Existing law entitles a taxpayer making a contribution to receive a single state parks day use annual pass from the Department of Parks and Recreation if the price of the pass, as determined by the department, is less than or equal to the amount of the taxpayer’s contribution. Existing law allows a deduction for any contribution amount in excess of the price of the pass received, if any.

This bill would make nonsubstantive changes to these provisions.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 6370.2 is added to the Revenue and Taxation Code, to read:

6370.2.
 (a) On and after January 1, 2022, and before January 1, 2027, 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, all of the following:
(1) Breast pumps.
(2) Breast pump collection and storage supplies.
(3) Breast pump kits.
(4) Breast pads.
(b) For purposes of this section, all of the following definitions shall apply:
(1) (A) “Breast pump” means an electrically or manually controlled pump device designed and marketed to be used to express milk from a human breast during lactation.
(B) “Breast pump” includes the electrically or manually controlled pump device and any battery, alternating current (AC) adapter, or other power supply unit packaged and sold with the pump device at the time of sale to power the pump device.
(2) (A) “Breast pump collection and storage supplies” means tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and store collected milk until it is ready for consumption, including, but is not limited to, all of the following:
(i) Breast shields and breast shield connectors.
(ii) Breast pump tubes and tubing adapters.
(iii) Breast pump valves and membranes.
(iv) Backflow protectors and backflow protector adaptors.
(v) Bottle and bottle caps specific to the operation of the breast pump.
(vi) Breast milk storage bags.
(vii) Other items that may be useful to initiate, support, or sustain breastfeeding using a breast pump during lactation, that may be sold separately, but are generally sold as part of a breast pump kit.
(B) “Breast pump collection and storage supplies” does not include the following items if not sold as part of a breast pump kit prepackaged by the breast pump manufacturer or distributor:
(i) Bottles and bottle caps not specific to the operation of the breast pump.
(ii) Breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products.
(iii) Breast pump cleaning supplies.
(iv) Nursing bras, bra pads, breast shells, and other similar products.
(v) Creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples.
(3) “Breast pump kit” means a kit that contains a breast pump and one or more of the following items:
(A) Breast pump collection and storage supplies.
(B) Other tangible personal property that may be useful to initiate, support, or sustain breastfeeding using a breast pump during lactation, so long as the other tangible personal property sold with the breast pump kit at the time of the sale are less than 10 percent of the total sales price of the breast pump kit.
(c) This section shall become inoperative on January 1, 2027, and as of that date is repealed.

SEC. 2.

 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. 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.
SECTION 1.Section 18900.1 of the Revenue and Taxation Code is amended to read:
18900.1.

(a)For taxable years beginning on or after January 1, 2012, the Franchise Tax Board shall revise the individual taxpayer return form to allow an individual to designate a contribution in excess of the taxpayer’s tax liability, if any, to be made to the State Parks Protection Fund established by Section 18900.2.

(b)A contribution shall be made in a full dollar amount and may be made individually by each signatory on a joint return.

(c)A designation made under subdivision (a) shall be made for any taxable year on the original return for that taxable year, and once made shall be irrevocable. In the event that payments and credits reported on the return, together with any other credits associated with the taxpayer’s account, do not exceed the taxpayer’s tax liability, if any, the return shall be treated as though no designation had been made. In the event that a designee is not specified, the contribution shall, after reimbursement of the direct actual costs of the Franchise Tax Board for the collection and administration of funds under the article, be transferred to the General Fund.

(d)If an individual designates a contribution to more than one account or fund listed on the tax return, and the amount available is insufficient to satisfy the total amount designated, the contribution shall be allocated among the designated accounts on a pro rata basis.

(e)A taxpayer making a designation under subdivision (a) shall be entitled to receive a single state parks day use annual pass from the Department of Parks and Recreation if the price of a single state parks day use annual pass, as determined by the Department of Parks and Recreation, is less than or equal to the amount of the taxpayer’s contribution.

(f)The state parks day use annual pass that an individual is entitled to receive pursuant to this section shall provide the passholder with unlimited day use access to the California state parks that are accessible with a vehicle day use annual pass, as those parks are listed on the Department of Parks and Recreation’s internet website, and shall be valid for one year beginning on the date of issuance.

(g)The Franchise Tax Board shall revise the form of the return to include a space labeled the “State Parks Protection Fund/Parks Pass Purchase” to allow for the designation permitted under subdivision (a). The form shall also include in the instructions information that the contribution may be in the amount of one dollar ($1) or more and that if the contribution amount is equal to or exceeds the price of a single state parks day use annual pass, as determined by the Department of Parks and Recreation, the taxpayer will be entitled to a single state parks day use annual pass from the Department of Parks and Recreation. The instructions shall also include information indicating that the contribution shall be used by the Department of Parks and Recreation to cover the costs of the issuance of state parks day use annual passes to individual taxpayers who made a designation for that purpose pursuant to this section, and for purposes related to the protection and preservation of state parks.

(h)Notwithstanding the provisions of Article 2 (commencing with Section 19542) of Chapter 7, the Franchise Tax Board shall provide necessary information, including the names and addresses of individual taxpayers who contributed to the State Parks Protection Fund, to the Department of Parks and Recreation so that the department may contact the individuals entitled to a state parks day use annual pass under this section and implement a procedure for the distribution of a state parks day use annual pass to those individuals.

(i)A deduction shall be allowed under Article 6 (commencing with Section 17201) of Chapter 3 of Part 10 for any contribution made pursuant to subdivision (a), but only with respect to the amount contributed in excess of the price of the state parks day use annual pass received, if any, pursuant to this section.