AB 479, as amended, 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 textbookbegin delete, as defined,end delete purchased by a studentbegin delete atend deletebegin insert fromend insert
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.begin insert The bill would define certain terms for those purposes.end insert
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.
end deleteThis 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.
end deleteThis bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.
end deleteThe 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, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which conforms to the Sales and Use Tax Law. Amendments to 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 any local agencies for sales and use tax revenues lost by them pursuant to this bill.
begin insertThis bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.
end insertVote: 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
P3 1storage, use, or other consumption in this state of, a textbook
2purchased by a studentbegin delete atend deletebegin insert fromend insert an institution of higher education
3or sold by an entity whose primary purpose is to provide textbooks
4to students attending institutions of higher education, for use as a
5learning resource in any course of study at that institution.
6(b) A student shall present a valid student
identification card
7or a proof of enrollment issued by an institution of higher education
8in order to receive the benefit of this textbook sales exemption.
P3 1 9(b)
end delete
10begin insert(c)end insert For purposes of this section,begin delete bothend deletebegin insert allend insert of the following apply:
11(1) “Institution of higher education” means a 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) “Primary purpose” means that at least 50 percent of all
17books sold by the entity fit the definition of textbook in
18subparagraph (A) of paragraph (3).
7 19(2)
end delete
20begin insert(3)end insert (A) “Textbook” means any published material that is
21begin delete principally designedend deletebegin insert
assignedend insert for use by a student at any institution
22of higher education as a source of instructional material, and
23includes, but is not limited to, any book or edition of a book, as
24so described, that isbegin delete directedend deletebegin insert requiredend insert or recommended by an
25instructor at an institution of higher educationbegin delete to a student to for use as a basis for a course of study at that institution.
26purchaseend delete
27(B) “Textbook” does not include books on audio tape, computer
28disc, CD-ROM, or similar storage media.
Notwithstanding Section 2230 of the Revenue and
30Taxation Code, no appropriation is made by this act and the state
31shall not reimburse any local agency for any sales and use tax
32revenues lost by it under this act.
This act provides for a tax levy within the meaning of
34Article IV of the Constitution and shall go into immediate effect.
35However, the provisions of this act shall become operative on the
36first day of the first calendar quarter commencing more than 90
37days after the effective date of this act.
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