Bill Text: CA AB219 | 2021-2022 | Regular Session | Amended
Bill Title: Personal income tax: credit: back-to-school items.
Spectrum: Bipartisan Bill
Status: (Failed) 2022-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB219 Detail]
Download: California-2021-AB219-Amended.html
Amended
IN
Assembly
February 23, 2021 |
Introduced by Assembly Members Villapudua and Mathis (Coauthors: Assembly Members |
January 11, 2021 |
LEGISLATIVE COUNSEL'S DIGEST
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.
Digest Key
Vote:Bill Text
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-SchoolOn 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.
It is the intent of the Legislature to enact legislation to comply with the requirements of Section 41 of the Revenue and Taxation Code.
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. 2.
Section 17055.5 is added to the Revenue and Taxation Code, to read:17055.5.
(a) (1) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to the amount of sales tax collected from a qualified taxpayer during the first week of August of the taxable year for purchases of back-to-school items, not to exceed two thousand five hundred dollars ($2500) per taxable year per household.This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.