Bill Text: CA AB1562 | 2015-2016 | Regular Session | Amended
Bill Title: Sales and use taxes: exemptions: disaster preparedness products.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Failed) 2016-11-30 - From committee without further action. [AB1562 Detail]
Download: California-2015-AB1562-Amended.html
BILL NUMBER: AB 1562 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 16, 2016
AMENDED IN ASSEMBLY MARCH 3, 2016
INTRODUCED BY Assembly Member Kim
(Coauthors: Assembly Members Bigelow and Steinorth)
JANUARY 4, 2016
An act to add and repeal Section 6380.2 to
of the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1562, as amended, Kim. Sales and use taxes: exemptions:
disaster preparedness products.
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. Under existing law, a sale or purchase of tangible personal
property pursuant to a layaway agreement or raincheck, or under
certain conditions, is considered a sale or purchase only when both
payment and delivery are complete.
This bill would exempt from those taxes the gross receipts from
the sale of, and the storage, use, or other consumption of, qualified
disaster preparedness products sold or purchased during the
2-day 1-day period beginning at 12:01 a.m. on
the 2nd Saturday in October 2017, and ending at 12:00 midnight
the following Sunday, of that day, or
for which a layaway agreement is entered into, a raincheck is issued,
or other specified orders are placed, during this period, as
specified. This bill would repeal these provisions as of January
1, 2018.
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 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 specify that this exemption does not apply to
local sales and use taxes or transactions and use taxes.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) A tax break is a great way to make readiness supplies more
affordable for families.
(b) A sales tax holiday is a good opportunity for retailers to
help raise awareness of the need for California residents to be ready
for emergencies and natural disasters such as storms or earthquakes.
(c) Californians should take the opportunity to create or restock
disaster supply kits and develop emergency plans for their families
and businesses.
(d) Preparing for emergencies and storms today can save lives and
property in the event of a disaster.
SEC. 2. Section 6380.2 is added to the Revenue and Taxation Code,
to read:
6380.2. (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, a qualified disaster preparedness
product that is any of the following:
(1) Sold or purchased during the qualified exemption period.
(2) Sold or purchased pursuant to a layaway agreement that is
entered into, and for which the purchaser has made a deposit of at
least 10 percent of the gross receipts from the sale or purchase,
during the qualified exemption period.
(3) Sold or purchased pursuant to a raincheck issued for the
product during the qualified exemption period. This paragraph does
not require any retailer to issue rainchecks.
(4) Sold or purchased pursuant to an order placed by the
purchaser, and paid for in full, during the qualified exemption
period, for a product not already existing or identified, regardless
of the time of identification or delivery of the product.
(b) For purposes of this section, the following terms have the
following meanings:
(1) "Layaway" has the same meaning as defined in Section 1749.1 of
the Civil Code.
(2) "Qualified disaster preparedness product" means any of the
following tangible personal property:
(A) A portable self-powered light source, if the gross receipts or
sales price from the sale or purchase of the product is thirty
dollars ($30) or less.
(B) A portable self-powered radio, two-way radio, or weather-band
radio, if the gross receipts or sales price from the sale or purchase
of the product is sixty dollars ($60) or less.
(C) A preassembled first-aid kit, if the gross receipts or sales
price from the sale or purchase of the product is thirty dollars
($30) or less.
(D) A gas or diesel fuel tank, if the gross receipts or sales
price from the sale or purchase of the product is twenty-five dollars
($25) or less.
(E) A package of AA cell, C cell, D cell, 6 volt, or 9 volt
batteries, but not automobile or boat batteries, if the gross
receipts or sales price from the sale or purchase of the product is
thirty dollars ($30) or less.
(F) A nonelectric food storage cooler, if the gross receipts or
sales price from the sale or purchase of the product is thirty
dollars ($30) or less.
(G) A portable generator that is used to provide light or
communications or preserve food in the event of a power outage, if
the gross receipts or sales price from the sale or purchase of the
product is seven hundred fifty dollars ($750) or less.
(H) A water purification system, if the gross receipts or sales
price from the sale or purchase of the product is forty dollars ($40)
or less.
(I) A battery-operated emergency beacon, if the gross receipts or
sales price from the sale or purchase of the product is fifty dollars
($50) or less.
(J) Emergency flares, if the gross receipts or sales price from
the sale or purchase of the product is twenty dollars ($20) or less.
(3) "Qualified exemption period" means the two-day
one-day period beginning at 12:01 a.m. on the
second Saturday in October 2017, and ending at 12:00 midnight
the following Sunday. of that day.
(4) "Raincheck" means a document issued to a customer when a
product is out of stock that allows the customer to purchase the
product at a later time at the product's price at the time the
document is issued.
(c) 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.
(d) This section shall remain in effect only until January 1,
2018, and as of that date is repealed.
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. SEC. 3. This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.
