BILL NUMBER: AB 1265	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 1, 2009
	AMENDED IN ASSEMBLY  MAY 21, 2009

INTRODUCED BY   Assembly Member Ma

                        FEBRUARY 27, 2009

   An act to add 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 
 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.
   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
  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, but its
operative date would depend on its effective date.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: 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   the  qualified
itinerant vendor, except alcoholic beverages  o   r
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 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. 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.