Bill Text: CA SB898 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Sales and use taxes: exemption: animal blood.

Spectrum: Slight Partisan Bill (Republican 4-2)

Status: (Vetoed) 2016-11-30 - Last day to consider Governor's veto pursuant to Joint Rule 58.5. [SB898 Detail]

Download: California-2015-SB898-Amended.html

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BILL NUMBER: SB 898	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 4, 2016

INTRODUCED BY   Senator Nguyen

                        JANUARY 21, 2016

   An act to  amend Section 23002 of   add
Section 6358.6 to  the Revenue and Taxation Code, relating to
taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 898, as amended, Nguyen.  Corporation taxes. 
 Sales and use taxes: exemption: animal blood.  
   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.
Existing law provides for various exemptions from those taxes,
including an exemption for certain sales of human blood and
containers thereof.  
   This bill 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, animal whole blood, plasma, blood products, and
blood derivatives, sold for use in the cure, mitigation, treatment,
or prevention of injury or disease in animals pursuant to a specified
state law.  
   The bill also would require the State Board of Equalization to
cancel any notice of determination and any related penalties and
interest, and to not issue any notice of determination, with respect
to the sale in this state of, and the storage, use, or other
consumption in this state of, animal whole blood, plasma, blood
products, and blood derivatives, sold for use in the cure,
mitigation, treatment, or prevention of injury or disease in animals
pursuant to a specified state law. The bill would make findings
regarding the public purpose of this provision.  
   The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes
cities and counties 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 incorporated into the local tax laws.  
   Existing law requires the state to reimburse cities and counties
for revenue losses caused by the enactment of sales and use tax
exemptions.  
   This bill would provide that, notwithstanding these provisions, no
appropriation is made and the state shall not reimburse cities and
counties for sales and use tax revenues lost by them pursuant to this
bill.  
   The Corporation Tax Law generally provides that its provisions are
applicable to the corporation franchise tax, the corporation income
tax, the alternative minimum tax, or the predecessor acts of the
Corporation Tax Law.  
   This bill would make nonsubstantive changes to that provision.

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 6358.6 is added to the 
 Revenue and Taxation Code   , to read:  
   6358.6.  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, animal whole blood,
plasma, blood products, and blood derivatives, sold for use in the
cure, mitigation, treatment, or prevention of injury or disease in
animals pursuant to Section 9241 of the Food and Agricultural Code.

   SEC. 2.    The Legislature finds and declares that
animals have emergencies and illnesses presenting a critical need for
blood products, and that in enacting this act it is in the public
interest to relieve from liability those persons that have not paid
sales tax or collected sales tax reim   bursement on their
sales of animal blood products, thereby preventing undue hardship on
those persons that offer this vital life service. 
   SEC. 3.    The State Board of Equalization shall
cancel any notice of determination and any related penalties and
interest, and shall not issue any notice of determination, with
respect to the sale in this state of, and the storage, use, or other
consumption in this state of, animal whole blood, plasma, blood
products, and blood derivatives, sold for use in the cure,
mitigation, treatment, or prevention of injury or disease in animals
pursuant to Section 9241 of the Food and Agricultural Code. 
   SEC. 4.   The Legislature finds and declares that the
addition of Section 3 of this act serves a public purpose as
described in Section 2 of this act, and does not constitute a gift of
public funds within the meaning of Section 6 of Article XVI of the
California Constitution. 
   SEC. 5.    Notwithstanding Section 2230 of the
Revenue and Taxation Code, no appropriation is made by this act and
the state shall not reimburse cities and counties for any sales and
use tax revenues lost by them under this act.  
  SECTION 1.    Section 23002 of the Revenue and
Taxation Code is amended to read:
   23002.  Except where otherwise expressly provided, all provisions
of this part are applicable to the taxes imposed respectively under
Chapter 2 (commencing with Section 23101), Chapter 2.5 (commencing
with Section 23400), or Chapter 3 (commencing with Section 23501), or
to the predecessor acts of this part, the Bank and Corporation
Franchise Tax Act, or the Corporation Income Tax Act, respectively.