BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                        AB 163|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                       CONSENT


          Bill No:  AB 163
          Author:   Atkins (D)
          Amended:  4/9/13 in Assembly
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  7-0, 6/5/13
          AYES:  Wolk, Knight, Beall, DeSaulnier, Emmerson, Hernandez, Liu

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  76-0, 4/25/13 (Consent) - See last page for  
            vote


           SUBJECT  :    Sales and use taxes exemption:  military thrift  
          store

           SOURCE :     Navy Region Southwest


           DIGEST  :    This bill extends, for 10 years, the sales and use  
          tax exemption for goods sold by thrift stores that are both  
          located on a military installation and operated by a military  
          welfare society.

           ANALYSIS  :    Existing state law provides a sales and use tax  
          exemption until January 1, 2014 for goods sold by a thrift store  
          that is both located on a military installation and operated by  
          a military welfare society.  A military welfare society, in  
          partnership with the United Sates Department of Defense,  
          provides financial, educational and other assistance to members  
          of the Armed Forces, eligible family members and survivors in  
                                                                CONTINUED





                                                                     AB 163
                                                                     Page  
          2

          need. 
           
          This bill extends, for 10 years, the sunset for the sales and  
          use tax exemption for thrift stores operated by a military  
          welfare society and on a military installation.

           Comments
           
          According to the author, this bill was introduced to continue  
          the sales and use tax exemption for the Navy-Marine Corps Relief  
          Society thrift stores on military bases.  The author notes this  
          exemption was created in 2009 and will expire if no action is  
          taken.  These stores operated by the society use their income to  
          provide financial, educational and other general assistance to  
          active duty and retired services members, families and  
          survivors.  The author notes the proceeds from these thrift  
          stores have provided $13.4 million in financial assistance, and  
          3,500 military families have taken financial education classes.   
          The author points out that other thrift stores such as Goodwill  
          and the Salvation Army are already exempt from the sales and use  
          tax, an exemption that has existed since 1959.   

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  6/25/13)

          Navy Region Southwest (source)
          Board of Equalization
          Board of Equalization Member George Runner
          Navy-Marine Corps Relief Society

           ASSEMBLY FLOOR  :  76-0, 4/25/13
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,  
            Buchanan, Ian Calderon, Campos, Chau, Ch�vez, Chesbro, Conway,  
            Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,  
            Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray,  
            Grove, Hagman, Hall, Harkey, Roger Hern�ndez, Holden, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Maienschein, Mansoor,  
            Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi,  
            Nestande, Olsen, Pan, Patterson, Perea, V. Manuel P�rez,  
            Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting,  
            Torres, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams,  







                                                                     AB 163
                                                                     Page  
          3

            Yamada, John A. P�rez
          NO VOTE RECORDED:  Cooley, Lowenthal, Nazarian, Vacancy


          AB:nl  6/26/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****