AB 575, as introduced, V. Manuel Pérez. Sales and use tax: retail sale: counterfeit mark: pirated intellectual property.
The Sales and Use Tax Law imposes a sales tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state under the storage, use, or other consumption in this state of tangible personal property purchased from any retailer for storage, use. or other consumption in this state. For purposes of that law, a “retail sale” or “sale at retail” means a sale for any purpose other than resale in the regular course of business in the form of tangible personal property.
This bill would provide that “retail sale” or “sale at retail” and “storage” or “use” also includes any sale of tangible personal property with a counterfeit mark on, or in connection with, that sale or any sale of tangible personal property that is pirated intellectual property, regardless of whether the sale is for resale in the regular course of business, as provided.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2⁄3 of the membership of each house of the Legislature.
This bill would take effect immediately as a tax levy.
Vote: 2⁄3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 6007 of the Revenue and Taxation Code
2 is amended to read:
begin insert(a)end insertbegin insert end insert A “retail sale” or “sale at retail” means a sale for
4any purpose other than resale in the regular course of business in
5the form of tangible personal property.
6When tangible personal property is delivered by an owner or
7former owner thereof, or by a factor or agent of that owner, former
8owner, or factor to a consumer or to a person for redelivery to a
9consumer, pursuant to a retail sale made by a retailer not engaged
10in business in this state, the person making the delivery shall be
11deemed the retailer of that property. He or she
shall include the
12retail selling price of the property in his or her gross receipts or
13sales price.
14(b) (1) Notwithstanding subdivision (a), a “retail sale” or “sale
15at retail” shall include any sale of tangible personal property with
16a counterfeit mark on, or in connection with, that sale or any sale
17of tangible personal property that is pirated intellectual property,
18regardless of whether the sale is for resale in the regular course
19of business.
20(2) “Counterfeit mark” has the same meaning as that term is
21defined in Section 2320 of Title 18 of the United States
Code.
22(3) “Pirated intellectual property” includes literary works, such
23as novels, poems, and plays, television and films, music and sound,
24artistic works, such as drawings and photographs, software, and
25any other intellectual property that has been distributed without
26permission from, and compensation to, the copyright owner or
27that otherwise violates any of the rights of the copyright owner
28specified in law. “Copyright owner,” with respect to any one of
29the rights comprised in a copyright, refers to the owner of that
30particular right.
Section 6009.2 is added to the Revenue and Taxation
32Code, to read:
Notwithstanding Sections 6008, 6009, and 6009.1,
34“storage” and “use” each shall include any sale of tangible personal
35property with a counterfeit mark on, or in connection with, that
P3 1sale or any sale of tangible personal property that is pirated
2intellectual property, regardless of whether the sale is for resale
3in the regular course of business.
4(2) “Counterfeit mark” has the same meaning as that term is
5defined in Section 2320 of Title 18 of the United States Code.
6(3) “Pirated intellectual property” includes literary works, such
7as novels, poems, and plays, television and films, music and sound,
8artistic works, such as drawings and photographs, software, and
9any other intellectual property that has
been distributed without
10permission from, and compensation to, the copyright owner or that
11otherwise violates any of the rights of the copyright owner specified
12in law. “Copyright owner,” with respect to any one of the rights
13comprised in a copyright, refers to the owner of that particular
14right.
This act provides for a tax levy within the meaning of
16Article IV of the Constitution and shall go into immediate effect.
O
99