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 ASSEMBLY  JUNE 27, 2016
	AMENDED IN SENATE  MAY 31, 2016
	AMENDED IN SENATE  APRIL 25, 2016
	AMENDED IN SENATE  APRIL 4, 2016

INTRODUCED BY   Senator Nguyen
   (Principal coauthors: Assembly Members Travis Allen and Mullin)
   (Coauthors: Senators Allen, Berryhill, and Stone)

                        JANUARY 21, 2016

   An act to add  Section 6358.6 to   and repeal
Section 6358.6 of  the Revenue and Taxation Code, relating to
 taxation.   taxation, to take effect
immediately, tax levy. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 898, as amended, Nguyen. 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   bill, until January 1, 2022,
 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 by a nonprofit animal blood banking business for
use in the cure, mitigation, treatment, or prevention of injury or
disease in animals pursuant to a specified state law.  The bill
would define "nonprofit" for its purposes.  
   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 by a nonprofit animal blood
banking business 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. 
   This bill would take effect immediately as a tax levy. 
   Vote: majority. Appropriation: no. Fiscal committee: 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.   (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, animal whole blood, plasma, blood products, and blood
derivatives, sold by a nonprofit animal blood banking business 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. 
   (b) For purposes of this section, "nonprofit" means an
organization exempt from federal income taxation as an organization
described in Section 501(c)(3) of the Internal Revenue Code. 

   (c) This section shall remain in effect only until January 1,
2022, and as of that date is repealed.  
  SEC. 2.    The Legislature finds and declares that
animals have emergencies and illnesses that present a critical need
for blood products, and that in enacting this act it is in the public
interest to relieve from liability those nonprofit animal blood
banking businesses that have not paid sales tax or collected sales
tax reimbursement on their sales of animal blood products, thereby
preventing undue hardship on those nonprofit animal blood banking
businesses 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 by a nonprofit animal blood
banking business 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.   SEC. 2.   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.
   SEC. 3.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.