Bill Text: CA AB575 | 2013-2014 | Regular Session | Introduced

---

Bill Title: Sales and use tax: retail sale: counterfeit mark: pirated intellectual property.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB575 Detail]

Download: California-2013-AB575-Introduced.html

---

BILL NUMBER: AB 575	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member V. Manuel P�rez

                        FEBRUARY 20, 2013

   An act to amend Section 6007 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 575, as introduced, V. Manuel P�rez. Sales and use tax: retail
sale: counterfeit mark: pirated intellectual property.
   The Sales and Use Tax Law imposes a sales tax on retailers
measured by the gross receipts from the sale of tangible personal
property sold at retail in this state under the storage, use, or
other consumption in this state of tangible personal property
purchased from any retailer for storage, use. or other consumption in
this state. For purposes of that law, a "retail sale" or "sale at
retail" means a sale for any purpose other than resale in the regular
course of business in the form of tangible personal property.
   This bill would provide that "retail sale" or "sale at retail" and
"storage" or "use" also includes any sale of tangible personal
property with a counterfeit mark on, or in connection with, that sale
or any sale of tangible personal property that is pirated
intellectual property, regardless of whether the sale is for resale
in the regular course of business, as provided.
   This bill would include a change in state statute that would
result in a taxpayer paying a higher tax within the meaning of
Section 3 of Article XIII A of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.
   This bill would take effect immediately as a tax levy.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 6007 of the Revenue and Taxation Code is
amended to read:
   6007.   (a)    A "retail sale" or "sale at
retail" means a sale for any purpose other than resale in the regular
course of business in the form of tangible personal property.
   When tangible personal property is delivered by an owner or former
owner thereof, or by a factor or agent of that owner, former owner,
or factor to a consumer or to a person for redelivery to a consumer,
pursuant to a retail sale made by a retailer not engaged in business
in this state, the person making the delivery shall be deemed the
retailer of that property. He or she shall include the retail selling
price of the property in his or her gross receipts or sales price.

   (b) (1) Notwithstanding subdivision (a), a "retail sale" or "sale
at retail" shall include any sale of tangible personal property with
a counterfeit mark on, or in connection with, that sale or any sale
of tangible personal property that is pirated intellectual property,
regardless of whether the sale is for resale in the regular course of
business.  
   (2) "Counterfeit mark" has the same meaning as that term is
defined in Section 2320 of Title 18 of the United States Code. 

   (3) "Pirated intellectual property" includes literary works, such
as novels, poems, and plays, television and films, music and sound,
artistic works, such as drawings and photographs, software, and any
other intellectual property that has been distributed without
permission from, and compensation to, the copyright owner or that
otherwise violates any of the rights of the copyright owner specified
in law. "Copyright owner," with respect to any one of the rights
comprised in a copyright, refers to the owner of that particular
right. 
  SEC. 2.  Section 6009.2 is added to the Revenue and Taxation Code,
to read:
   6009.2.  Notwithstanding Sections 6008, 6009, and 6009.1, "storage"
and "use" each shall include any sale of tangible personal property
with a counterfeit mark on, or in connection with, that sale or any
sale of tangible personal property that is pirated intellectual
property, regardless of whether the sale is for resale in the regular
course of business.
   (2) "Counterfeit mark" has the same meaning as that term is
defined in Section 2320 of Title 18 of the United States Code.
   (3) "Pirated intellectual property" includes literary works, such
as novels, poems, and plays, television and films, music and sound,
artistic works, such as drawings and photographs, software, and any
other intellectual property that has been distributed without
permission from, and compensation to, the copyright owner or that
otherwise violates any of the rights of the copyright owner specified
in law. "Copyright owner," with respect to any one of the rights
comprised in a copyright, refers to the owner of that particular
right.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.