Bill Text: CA SB107 | 2009-2010 | Regular Session | Amended

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Bill Title: Sales and use taxes: exemption: nonprofit organization:

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB107 Detail]

Download: California-2009-SB107-Amended.html

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BILL NUMBER: SB 107	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 16, 2009

INTRODUCED BY   Senator Walters

                        JANUARY 27, 2009

   An act to  add Section 6363.4 to   add and
repeal Section 6363.4 of  the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 107, as amended, Walters. Sales and use taxes: exemption:
nonprofit organization: mandatory gratuities.
   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  of  ,
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  that tax
  those taxes  .
   This bill would  , until January 1, 2014,  exempt from
sales and use  tax   taxes  , the gross
receipts from the sale in this state of, and the storage, use, or
other consumption in this state of, a mandatory gratuity, tip, or
service charge that is charged to a nonprofit organization, as
defined, by a hotel, caterer, restaurant, or similar establishment
for a meal, food, or beverages. 
   Counties and cities are authorized to impose local sales and use
taxes in conformity with state sales and use taxes. Exemptions from
state sales and use taxes enacted by the Legislature are incorporated
into the local taxes.  
   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 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.
   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 6363.4 is added to the Revenue and Taxation
Code, 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, a mandatory
gratuity, tip, or service charge that is charged by a hotel, caterer,
restaurant, or similar establishment, for a meal, food, or beverages
purchased by a nonprofit organization.
   (b) For purposes of this section, "nonprofit organization" means
an organization exempt from  taxation under  
federal income taxation as an organization described in  Section
501(c)(3) or Section 501(c)(4) of the Internal Revenue Code. 
   (c) This section shall remain in effect only until January 1,
2014, 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.