BILL NUMBER: AB 180	CHAPTERED  10/01/01

	CHAPTER  383
	FILED WITH SECRETARY OF STATE  OCTOBER 1, 2001
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2001
	PASSED THE ASSEMBLY  SEPTEMBER 10, 2001
	PASSED THE SENATE  SEPTEMBER 4, 2001
	AMENDED IN SENATE  AUGUST 31, 2001
	AMENDED IN SENATE  AUGUST 20, 2001
	AMENDED IN ASSEMBLY  APRIL 18, 2001

INTRODUCED BY   Assembly Member Cedillo

                        FEBRUARY 6, 2001

   An act to amend Section 6363.3 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 180, Cedillo.  Sales and use tax exemption:  charitable thrift
stores.
   The Sales and Use Tax Law imposes a tax on the gross receipts from
the sale in this state of, or the storage, use, or other consumption
in this state of, tangible personal property.  That law provides
various exemptions from this tax, including an exemption for retail
items sold by thrift stores operated by a nonprofit organization, if
the purpose of that thrift store is to obtain funding for medical and
social services provided to individuals with HIV disease or AIDS by
the nonprofit organization.  This exemption will be repealed on
January 1, 2002.
   This bill would revise the definition of a nonprofit organization
eligible for this exemption to include organizations that provide
hospice services to persons with HIV disease or AIDS.  This bill
would extend the repeal date of the exemption to January 1, 2007.
   Counties and cities are authorized to impose local sales and use
taxes in conformity with state sales and use taxes.  Exemptions from
the state sales and use taxes enacted by the Legislature are
incorporated into the local taxes.
   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 6363.3 of the Revenue and Taxation Code is
amended to read:
   6363.3.  (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, used pieces of
clothing, household items, or other retail items sold by thrift
stores operated by a nonprofit organization if the purpose of that
thrift store is to obtain revenue for the funding of medical,
hospice, or social services to chronically ill individuals, and at
least 75 percent of those net revenues are actually expended for the
purpose of providing medical, hospice, or social services to the
chronically ill.
   (b) For purposes of this section, "nonprofit organization" means
an organization that provides medical, hospice, or social services to
individuals with a chronic, life-threatening illness, as defined in
subdivision (c) of Section 1568.01 of the Health and Safety Code, and
is exempt from taxation under Section 23701d.
   (c) This section shall cease to be operative on January 1, 2007,
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.