AB 479, as introduced, Donnelly. Sales and use taxes: exemptions: textbooks.
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. That law provides various exemptions from those taxes.
This bill 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, a textbook, as defined, purchased by a student at an institution of higher education or sold by an entity whose primary purpose is to provide textbooks to students attending institutions of higher education, for use as a learning resource in any course of study at that institution.
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 existing law authorizes districts to impose transactions and use taxes in accordance with the Transactions and Use Tax Law which conforms to the Sales and Use Tax Law. Exemptions from state sales and use taxes are incorporated into these 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 6361.3 is added to the Revenue and
2Taxation Code, to read:
(a) There are exempted from the taxes imposed by
4this part, the gross receipts from the sale in this state of, and the
5storage, use, or other consumption in this state of, a textbook
6purchased by a student at an institution of higher education or sold
7by an entity whose primary purpose is to provide textbooks to
8students attending institutions of higher education, for use as a
9learning resource in any course of study at that institution.
10(b) For purposes of this section, both of the following apply:
11(1) “Institution of higher education” means any public or private
12college or university that is nationally or regionally accredited or
13a postsecondary educational institution as defined in Section
1466261.5
of the Education Code as added by Chapter 914 of the
15Statutes of 1998.
16(2) (A) “Textbook” means any published material that is
17principally designed for use by a student at any institution of higher
18education as a source of instructional material, and includes, but
19is not limited to, any book or edition of a book, as so described,
20that is directed or recommended by an instructor at an institution
21of higher education to a student to purchase for use as a basis for
22a course of study at that institution.
23(B) “Textbook” does not include books on audio tape, computer
24disc, cd-rom, or similar storage media.
Notwithstanding Section 2230 of the Revenue and
26Taxation Code, no appropriation is made by this act and the state
P3 1shall not reimburse any local agency for any sales and use tax
2revenues lost by it under this act.
This act provides for a tax levy within the meaning of
4Article IV of the Constitution and shall go into immediate effect.
5However, the provisions of this act shall become operative on the
6first day of the first calendar quarter commencing more than 90
7days after the effective date of this act.
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