Bill Text: CA AB717 | 2015-2016 | Regular Session | Enrolled

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Bill Title: Sales and use taxes: exemption: diapers.

Spectrum: Slight Partisan Bill (Democrat 6-2)

Status: (Vetoed) 2016-09-13 - Vetoed by Governor. [AB717 Detail]

Download: California-2015-AB717-Enrolled.html

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BILL NUMBER: AB 717	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 16, 2016
	PASSED THE ASSEMBLY  JANUARY 28, 2016
	AMENDED IN ASSEMBLY  JANUARY 21, 2016
	AMENDED IN ASSEMBLY  MAY 21, 2015

INTRODUCED BY   Assembly Member Gonzalez
   (Principal coauthor: Senator Anderson)
   (Coauthors: Assembly Members Campos, Dababneh, Cristina Garcia,
Melendez, Rodriguez, and Salas)

                        FEBRUARY 25, 2015

   An act to add and repeal Section 6363.9 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 717, Gonzalez. Sales and use taxes: exemption: diapers.
   Existing sales and use tax laws impose 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, until January 1, 2022, 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, diapers for infants and
toddlers, designated size 3 or under.
   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.


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

  SECTION 1.  Section 6363.9 is added to the Revenue and Taxation
Code, to read:
   6363.9.  (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, diapers
designed, manufactured, processed, fabricated, or packaged for use by
infants and toddlers, designated size 3 or under.
   (b) This section shall remain in effect only until January 1,
2022, and as of that date is repealed.
  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.