Bill Text: CA SB598 | 2015-2016 | Regular Session | Chaptered

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Bill Title: Sales and use taxes: consumer designation: all volunteer fire department.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2015-09-02 - Chaptered by Secretary of State. Chapter 248, Statutes of 2015. [SB598 Detail]

Download: California-2015-SB598-Chaptered.html

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BILL NUMBER: SB 598	CHAPTERED
	BILL TEXT

	CHAPTER  248
	FILED WITH SECRETARY OF STATE  SEPTEMBER 2, 2015
	APPROVED BY GOVERNOR  SEPTEMBER 2, 2015
	PASSED THE SENATE  AUGUST 20, 2015
	PASSED THE ASSEMBLY  JULY 16, 2015
	AMENDED IN ASSEMBLY  JUNE 29, 2015
	AMENDED IN SENATE  APRIL 15, 2015

INTRODUCED BY   Senator Hill

                        FEBRUARY 27, 2015

   An act to add and repeal Section 6018.10 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 598, Hill. Sales and use taxes: consumer designation: all
volunteer fire department.
   The Sales and Use Tax Law, among other things, imposes a tax on
retailers measured by the gross receipts from their sales of tangible
personal property sold at retail in this state, and specifies that
certain sellers of tangible personal property are consumers, and not
retailers, of the tangible personal property they sell.
   This bill would provide, until January 1, 2021, that an all
volunteer fire department, as defined, is a consumer, and not a
retailer, of all tangible personal property sold by it, if the
profits are used solely and exclusively in furtherance of the
purposes of the all volunteer fire department, subject to specified
limitations, so that the retail sale subject to tax is the sale of
tangible personal property to the all volunteer fire department.
   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
generally 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 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 6018.10 is added to the Revenue and Taxation
Code, to read:
   6018.10.  (a) An all volunteer fire department is a consumer of,
and shall not be considered a retailer within the provisions of this
part of all tangible personal property sold by it, including, but not
limited to, hot prepared food products and clothing, if the profits
are used solely and exclusively in furtherance of the purposes of the
all volunteer fire department.
   (b) For purposes of this section, an "all volunteer fire
department" means an organization that meets all of the following
requirements:
   (1) No member shall be paid a regular salary, but a member may be
compensated on an hourly or per incident basis.
   (2) The purpose of the organization is to protect the lives,
property, and environment within a designated geographical area from
fires, disasters, and emergency incidents through education,
prevention, training, and emergency response.
   (3) The organization is regularly organized for volunteer fire
department purposes and qualifies as an exempt organization, either
under Section 23701d or 23701f of this code or under Section 501(c)
(3) or 501(c)(4) of the Internal Revenue Code, having official
recognition and full or partial support of the government of the
county, city, or district in which the volunteer fire department is
located, and that has functions having an exclusive connection with
the prevention and extinguishing of fires within the area of the
county, city, or district extending official recognition for the
benefit of the public generally and to lessen the burdens of the
entity of government that would otherwise be obligated to furnish
that fire protection.
   (c) This section shall not apply if an all volunteer fire
department, in each of the two preceding calendar years, has gross
receipts from the sale of tangible personal property of one hundred
thousand dollars ($100,000) or more.
   (d) This section shall remain in effect only until January 1,
2021, 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.