Bill Text: CA SB1041 | 2021-2022 | Regular Session | Chaptered
Bill Title: Sales and use taxes: general exemptions.
Spectrum: Strong Partisan Bill (Democrat 10-1)
Status: (Passed) 2022-08-29 - Chaptered by Secretary of State. Chapter 225, Statutes of 2022. [SB1041 Detail]
Download: California-2021-SB1041-Chaptered.html
Senate Bill
No. 1041
CHAPTER 225
An act to amend Section 6363.4 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
[
Approved by
Governor
August 29, 2022.
Filed with
Secretary of State
August 29, 2022.
]
LEGISLATIVE COUNSEL'S DIGEST
SB 1041, Atkins.
Sales and use taxes: general exemptions.
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. The Sales and Use Tax Law provides various exemptions from those taxes, including an exemption for the sale of, or the storage, use, or consumption of, tangible personal property sold by a thrift store located on a military installation and operated by a designated entity, as defined, that, in partnership with the United States Department of Defense, provides financial, educational, and other assistance to members of the Armed Forces of the United States, eligible family members, and survivors that are in need. Existing law provides that this exemption will remain in
effect only until January 1, 2024.
This bill would remove the exemption’s expiration date.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would make findings and declarations in satisfaction of that requirement.
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, as specified.
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 that provision, no appropriation is made and the state shall not reimburse any local agencies for sales and use tax revenues lost by them pursuant to the provisions this bill would impose.
This bill would take effect immediately as a tax levy.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 6363.4 of the Revenue and Taxation Code is amended to read:6363.4.
(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, tangible personal property sold by a thrift store located on a military installation and operated by a designated entity that, in partnership with the United States Department of Defense, provides financial, educational, and other assistance to members of the Armed Forces of the United States, eligible family members, and survivors that are in need.(b) For purposes of this section, “designated entity” means a military welfare society described in Section 1033 of Chapter 53 of Part II of Subtitle A of Title 10 of the United States Code.
SEC. 2.
For the purpose of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following:(a) The objective of the exemption allowed by this section is to provide an incentive for thrift stores to continue to operate on military installations in partnership with the United States Department of Defense to provide financial, educational, and other assistance to members of the Armed Forces of the United States, eligible family members, and survivors in need.
(b) The performance indicators used to determine if the exemption is achieving the stated objective shall be the amount of charitable giving by recipients of this relief and the
number of service members who receive that aid.
(c) (1) The California Department of Tax and Fee Administration shall submit a report to the Legislature no later than January 1, 2028, regarding this exemption.
(2) The report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
