Bill Text: CA AB659 | 2009-2010 | Regular Session | Enrolled
Bill Title: Sales and use taxes: consumer: garment cleaner.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2010-01-14 - Consideration of Governor's veto stricken from file. [AB659 Detail]
Download: California-2009-AB659-Enrolled.html
BILL NUMBER: AB 659 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 27, 2009
PASSED THE ASSEMBLY AUGUST 31, 2009
AMENDED IN SENATE AUGUST 17, 2009
AMENDED IN SENATE JULY 15, 2009
AMENDED IN ASSEMBLY MAY 11, 2009
INTRODUCED BY Assembly Member Hayashi
FEBRUARY 25, 2009
An act to amend, repeal, and add Section 6018.6 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 659, Hayashi. Sales and use taxes: consumer: garment cleaner.
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, with certain exceptions, defines a retailer as a seller who
makes any retail sale of tangible personal property and as a person
who makes more than 2 retail sales of tangible personal property
during any 12-month period. A retail sale is a sale of tangible
personal property for any purpose other than resale in the regular
course of business.
This bill would, until January 1, 2013, provide that a garment
cleaner who received no more than 0.5% of his or her total gross
receipts from the sale of tangible personal property during the
preceding calendar year is a consumer, not a retailer, of that
tangible personal property sold, so the retail sale subject to tax is
the sale to the garment cleaner. This bill would provide that a
garment cleaner is a retailer if his or her sales of tangible
personal property exceed 0.5% of his or her total gross receipts
during the preceding calendar year, and sales tax would apply to the
gross receipts from those sales.
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 the Transactions and Use Tax Law
authorizes districts, as specified, to impose transactions and use
taxes in conformity with the Sales and Use Tax Law.
Exemptions from state sales and use taxes are incorporated in
these taxes. 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 PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6018.6 of the Revenue and Taxation Code is
amended to read:
6018.6. (a) Any person who received no more than 20 percent of
his or her total gross receipts from the alteration of garments
during the preceding calendar year or who received no more than
one-half of 1 percent of his or her total gross receipts from the
sale of any other tangible personal property during the preceding
calendar year is a consumer of, and shall not be considered a
retailer within the provisions of this part with respect to, property
used or furnished by that person in altering new or used clothing or
the tangible personal property so sold, provided both of the
following apply:
(1) That person operates a location or locations as a pickup and
delivery point for garment cleaning, or provides spotting and
pressing services on the premises but not garment cleaning, or
operates a garment cleaning or dyeing plant on the premises.
(2) Seventy-five percent or more of that person's total gross
receipts represent charges for garment cleaning or dyeing services.
(b) Sales tax shall not apply to the charges for alterations or
sales of other tangible personal property when those charges or sales
do not exceed the limitations specified in subdivision (a). However,
if that person's sales of other tangible personal property to
consumers exceed one-half of 1 percent of his or her total gross
receipts during the preceding calendar year, that person is a
retailer of the tangible personal property and sales tax shall apply
to the gross receipts from those sales.
(c) For the purpose of this section:
(1) "Cleaning" means wet cleaning and drycleaning.
(2) "Wet cleaning" means the process of cleaning a garment by
immersion in water, or by applying manually or by any mechanical
device, water, or any detergent and water, or by spraying or brushing
the garment with water or water and any detergent, or water vapor,
or steam, and includes self-service or coin-operated equipment in
whole or in part.
(3) "Drycleaning" means the process of cleaning or renovating
wearing apparel, feathers, furs, hats, fabrics, household items, or
textiles by immersion and agitation, spraying, vaporization, or
immersion only, in a volatile, commercially moisture-free solvent or
by the use of a volatile or inflammable product, applied either
manually or by means of a mechanical appliance and including
self-service or coin-operated equipment in whole or in part.
(4) "Dyeing" means the process of coloring wearing apparel,
feathers, furs, hats, fabrics, or textiles by the use of aniline
dyes, mordants, or acids, with or without steam, excluding, however,
the use of any dye or combination of dyes which is directly soluable
or dispersible in water and which does not require chemical
alteration of its structure for application, where that dye or
combination of dyes is applied to cotton, viscose rayon, or
cuprammonium rayon other than wearing apparel.
(5) "Spotting" means the process of removing spots or stains or
localized areas of soil from a garment, either before or after, and
with or without drycleaning or wet cleaning, by brushing, spraying,
or other means of manual or mechanical application, other than
immersion, with water, detergents, and volatile or inflammable
solvents, chemicals, or any, or all of them.
(6) "Pressing" means the process of restoring the garment to the
original shape, dimensions or contour thereof, or to those in which
the same was received from the customer, or as directed by the
customer, and the removal of wrinkles, stresses, bulges, and
impressions, imprint marks and shine, from a garment by the
application of pressure, heat, moisture, water vapor or steam, or all
of them, whether applied manually, or by any mechanical means.
(d) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.
SEC. 2. Section 6018.6 is added to the Revenue and Taxation Code,
to read:
6018.6. (a) Any person who receives no more than 20 percent of
his or her total gross receipts from the alteration of garments
during the preceding calendar year is a consumer of, and shall not be
considered a retailer within the provisions of this part with
respect to, property used or furnished by that person in altering new
or used clothing, provided both of the following apply:
(1) That person operates a location or locations as a pickup and
delivery point for garment cleaning, or provides spotting and
pressing services on the premises but not garment cleaning, or
operates a garment cleaning or dyeing plant on the premises.
(2) Seventy-five percent or more of that person's total gross
receipts represent charges for garment cleaning or dyeing services.
(b) Sales tax shall not apply to the charges for alterations
specified in subdivision (a). However, that person is a retailer of
any other tangible personal property sold to consumers in the regular
course of business and sales tax shall apply to the gross receipts
from those sales.
(c) For the purpose of this section:
(1) "Cleaning" means wet cleaning and drycleaning.
(2) "Wet cleaning" means the process of cleaning a garment by
immersion in water, or by applying manually or by any mechanical
device, water, or any detergent and water, or by spraying or brushing
the garment with water or water and any detergent, or water vapor,
or steam, and includes self-service or coin-operated equipment in
whole or in part.
(3) "Drycleaning" means the process of cleaning or renovating
wearing apparel, feathers, furs, hats, fabrics, household items, or
textiles by immersion and agitation, spraying, vaporization, or
immersion only, in a volatile, commercially moisture-free solvent or
by the use of a volatile or inflammable product, applied either
manually or by means of a mechanical appliance and including
self-service or coin-operated equipment in whole or in part.
(4) "Dyeing" means the process of coloring wearing apparel,
feathers, furs, hats, fabrics, or textiles by the use of aniline
dyes, mordants, or acids, with or without steam, excluding, however,
the use of any dye or combination of dyes which is directly soluable
or dispersible in water and which does not require chemical
alteration of its structure for application, where that dye or
combination of dyes is applied to cotton, viscose rayon, or
cuprammonium rayon other than wearing apparel.
(5) "Spotting" means the process of removing spots or stains or
localized areas of soil from a garment, either before or after, and
with or without drycleaning or wet cleaning, by brushing, spraying,
or other means of manual or mechanical application, other than
immersion, with water, detergents, and volatile or inflammable
solvents, chemicals, or any, or all of them.
(6) "Pressing" means the process of restoring the garment to the
original shape, dimensions or contour thereof, or to those in which
the same was received from the customer, or as directed by the
customer, and the removal of wrinkles, stresses, bulges, and
impressions, imprint marks and shine, from a garment by the
application of pressure, heat, moisture, water vapor or steam, or all
of them, whether applied manually, or by any mechanical means.
(d) This section shall become operative on January 1, 2013.
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 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.
