California-2013-AB479-Amended

BILL NUMBER: AB 479	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 14, 2013
	AMENDED IN ASSEMBLY  APRIL 1, 2013

INTRODUCED BY   Assembly Member Donnelly
   (Coauthors: Assembly Members Dahle,  Beth Gaines, Grove,
Jones, and Olsen)
   (Coauthor: Senator Gaines)

                        FEBRUARY 19, 2013

   An act to add Section 6361.3 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 479, as amended, Donnelly. Sales and use taxes: exemptions:
textbooks.
   The Sales and Use Tax Law imposes 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. That
law provides various exemptions from those taxes.
   This bill would exempt from those taxes the gross receipts from
the sale in this state of, and the storage, use, or other consumption
in this state of, a textbook  , as defined, 
purchased by a student  at   from  an
institution of higher education or sold by an entity whose primary
purpose is to provide textbooks to students attending institutions of
higher education, for use as a learning resource in any course of
study at that institution.  The bill would define certain terms
for those purposes.  
   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 law authorizes
districts to impose transactions and use taxes in accordance with the
Transactions and Use Tax Law which conforms to the Sales and Use Tax
Law. Exemptions from state sales and use taxes are incorporated into
these laws. Section 2230 of the Revenue and Taxation Code provides
that the state will 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 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, but its
operative date would depend on its effective date. 
   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 law authorizes
districts, as specified, to impose transactions and use taxes in
accordance with the Transactions and Use Tax Law, which conforms to
the Sales and Use Tax Law. Amendments to state sales and use taxes
are incorporated into these laws.
   Section 2230 of the Revenue and Taxation Code provides that the
state will 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, but its
operative date would depend on its effective date. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 6361.3 is added to the Revenue and Taxation
Code, to read:
   6361.3.  (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 textbook
purchased by a student  at   from  an
institution of higher education or sold by an entity whose primary
purpose is to provide textbooks to students attending institutions of
higher education, for use as a learning resource in any course of
study at that institution. 
   (b) A student shall present a valid student identification card or
a proof of enrollment issued by an institution of higher education
in order to receive the benefit of this textbook sales exemption.
 
   (b)
    (c)  For purposes of this section,  both
  all  of the following apply:
   (1) "Institution of higher education" means a public or private
college or university that is nationally or regionally accredited or
a postsecondary educational institution as defined in Section 66261.5
of the Education Code as added by Chapter 914 of the Statutes of
1998. 
   (2) "Primary purpose" means that at least 50 percent of all books
sold by the entity fit the definition of textbook in subparagraph (A)
of paragraph (3).  
   (2) 
    (3)  (A) "Textbook" means any published material that is
 principally designed   assigned  for use
by a student at any institution of higher education as a source of
instructional material, and includes, but is not limited to, any book
or edition of a book, as so described, that is  directed
  required  or recommended by an instructor at an
institution of higher education  to a student to purchase
 for use as a basis for a course of study at that
institution.
   (B) "Textbook" does not include books on audio tape, computer
disc, CD-ROM, or similar storage media.
  SEC. 2.  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. 3.  This act provides for a tax levy within the meaning of
Article IV of the 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.