BILL NUMBER: AB 1265	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 21, 2009

INTRODUCED BY   Assembly Member Ma

                        FEBRUARY 27, 2009

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1265, as amended, Ma. Sales and use taxes: consumers: 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.
   This bill would specify  , until January 1, 2012,  that a
qualified itinerant vendor, as defined, is a consumer, and not a
retailer, of tangible personal property owned  and sold  by
a qualified itinerant vendor, except for alcoholic beverages, so that
the retail sale subject to tax is the sale of tangible personal
property to the qualified itinerant vendor.
   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 the Transactions and Use Tax Law
authorizes districts, as specified, to impose transactions and use
taxes in conformity with the Sales and Use Tax Law. Exemptions from
state sales and use taxes are incorporated in these 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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  no   yes  .


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

  SECTION 1.  Section 6018.3 is added to the Revenue and Taxation
Code, 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 a qualified itinerant vendor, except
alcoholic beverages.
   (b) For purposes of this section, a person is a "qualified
itinerant  vendor"when   vendor" when  all
of the following apply:
   (1) The person was a member of the United States Armed Forces, 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,
2012, 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. 2.   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.