Bill Text: CA SB805 | 2011-2012 | Regular Session | Chaptered

---

Bill Title: Sales and use taxes: consumers: veterans: itinerant

Spectrum: Bipartisan Bill

Status: (Passed) 2011-09-06 - Chaptered by Secretary of State. Chapter 246, Statutes of 2011. [SB805 Detail]

Download: California-2011-SB805-Chaptered.html

---

BILL NUMBER: SB 805	CHAPTERED
	BILL TEXT

	CHAPTER  246
	FILED WITH SECRETARY OF STATE  SEPTEMBER 6, 2011
	APPROVED BY GOVERNOR  SEPTEMBER 6, 2011
	PASSED THE SENATE  AUGUST 22, 2011
	PASSED THE ASSEMBLY  JULY 14, 2011
	AMENDED IN ASSEMBLY  JUNE 20, 2011

INTRODUCED BY   Committee on Veterans Affairs (Senators Correa
(Chair), Berryhill, Calderon, Cannella, La Malfa, Negrete McLeod, and
Rubio)

                        FEBRUARY 18, 2011

   An act to amend Section 6018.3 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 805, Committee on Veterans Affairs. Sales and use taxes:
consumers: veterans: itinerant vendors.
   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,
measured by sales price. 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, and defines a
retail sale as a sale of tangible personal property for any purpose
other than resale in the regular course of business.
   Existing law provides that a qualified itinerant vendor, as
defined, is a consumer, and not a retailer, of tangible personal
property owned and sold by the qualified itinerant vendor, except for
alcoholic beverages or items sold for more than $100, so that the
retail sale subject to tax is the sale of tangible personal property
to the qualified itinerant vendor. This provision will be repealed on
January 1, 2012.
   This bill would extend that repeal date to January 1, 2022.
   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 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.


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

  SECTION 1.  Section 6018.3 of the Revenue and Taxation Code is
amended to read:
   6018.3.  (a) A qualified itinerant vendor is a consumer of, and
shall not be considered a retailer of, tangible personal property
owned and sold by the qualified itinerant vendor, except alcoholic
beverages or tangible personal property sold for more than one
hundred dollars ($100).
   (b) For purposes of this section, a person is a "qualified
itinerant vendor" when all of the following apply:
   (1) The person was a member of the Armed Forces of the United
States, who received an honorable discharge or a release from active
duty under honorable conditions.
   (2) The person is unable to obtain a livelihood by manual labor
due to a service-connected disability.
   (3) For the purposes of selling tangible personal property, the
person is a sole proprietor with no employees.
   (4) The person has no permanent place of business in this state.
   (c) For purposes of this section, "permanent place of business"
means any building or other permanently affixed structure, including
a residence, that is used in whole or in part for the purpose of
making sales of, or taking orders and arranging for shipment of,
tangible personal property. For purposes of this section, "permanent
place of business" does not include any building or other permanently
affixed structure, including a residence, used for any of the
following:
   (1) The storage of tangible personal property.
   (2) The cleaning or the storage of equipment or other property
used in connection with the manufacture or sale of tangible personal
property.
   (d) This section shall not apply to either of the following:
   (1) A person engaged in the business of serving meals, food, or
drinks to a customer at a location owned, rented, or otherwise
supplied by the customer.
   (2) A person operating a vending machine.
   (e) 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.