SB 688,
as amended, Galgiani. begin deleteAsbestos safety: regulations. end deletebegin insertSales and use taxes: exemptions: animals: drug and medicines.end insert
Existing sales and use tax laws impose 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, and provides various exemptions from those taxes. Existing sales and use tax laws, with certain exceptions, define 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.
end insertbegin insertExisting sales and use tax law provides that a licensed veterinarian is a consumer of, and not a retailer of, drugs and medicines used or furnished by the veterinarian in the performance of his or her professional services, so that the retail sale subject to tax is the sale of drugs and medicine to the licensed veterinarian.
end insertbegin insertThis bill would repeal the provision that a licensed veterinarian is a consumer of drugs and medicines used or furnished by the veterinarian in the performance of his or her professional services.
end insertbegin insertThis bill would exempt from sales and use taxes the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, drugs and medicines used, furnished, or sold by a licensed veterinarian, a city, county, city and county, or other local government animal shelter, or a nonprofit animal welfare or rescue organization for the treatment of animals.
end insertbegin insertThe 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.
end insertbegin insertSection 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 insertbegin insertThis 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.
end insertbegin insertThis bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.
end insertUnder existing law, if the State Department of Public Health believes that the air monitoring standard for asbestos in public school buildings should be revised, the department is required to promulgate a regulation to that effect. Existing law requires the department to provide the Office of Public School Construction with appropriate sampling methodology for use in taking air samples in public school buildings.
end deleteThis bill would make a technical, nonsubstantive change to these provisions.
end deleteVote: majority.
Appropriation: no.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: begin deleteno end deletebegin insertyesend insert.
The people of the State of California do enact as follows:
begin insertSection 6018.1 of the end insertbegin insertRevenue and Taxation Codeend insert
2begin insert is repealed.end insert
A licensed veterinarian is a consumer of, and shall not
2be considered a retailer within the provisions of this part with
3respect to, drugs and medicines used or furnished by him or her
4in the performance of his or her professional services.
5For the purposes of this section, “drugs and medicines” includes
6substances or preparations intended for use in the diagnosis, cure,
7mitigation, treatment, or prevention of disease in animals and
8which is commonly recognized as a substance or preparation
9intended for this use. The term includes legend drugs, pills and
10capsules (other than vitamins), liquid medications, injected drugs,
11ointments, vaccines, intravenous fluids, and medicated soaps if
12those soaps are available only to veterinarians. The term does not
13include vitamins, shampoos, pet foods, prescription diet foods,
14artificial diets, flea powders, and flea sprays.
begin insertSection 6358.3 is added to the end insertbegin insertRevenue and Taxation
16Codeend insertbegin insert, to read:end insert
(a) There are exempted from the taxes imposed by this
18part the gross receipts from the sale of, and the storage, use, or
19other consumption in this state of, drugs and medicines used,
20furnished, or sold by a licensed veterinarian, a city, county, city
21and county, or other local government animal shelter, or a
22nonprofit animal welfare or rescue organization for the treatment
23of animals.
24(b) For purposes of this section:
25(1) “Animal” includes any member of the animal kingdom other
26than humans, and includes fowl, fish, and reptiles, whether wild
27or domestic.
28(2) “Drugs and medicines” includes any substance or
29
preparation intended for use in the diagnosis, cure, mitigation,
30treatment, or prevention of disease in animals and which is
31commonly recognized as a substance or preparation intended for
32this use. The term includes legend drugs, pills and capsules (other
33than vitamins), liquid medications, injected drugs, ointments,
34vaccines, intravenous fluids, and medicated soaps if those soaps
35are available only to veterinarians. The term does not include
36vitamins, shampoos, pet foods, prescription diet foods, artificial
37diets, flea powders, and flea sprays.
38(3) “Licensed veterinarian” means a person licensed pursuant
39to Chapter 11 (commencing with Section 4800) of Division 2 of
40the Business and Professions Code.
P4 1(4) “Nonprofit animal welfare or rescue organization” means
2any organization, formed and operated for the primary
purpose
3of prevention of abuse, neglect, or exploitation of animals, that is
4exempt from tax under Section 23701 as an organization described
5in Section 23701d.
Notwithstanding Section 2230 of the Revenue and
7Taxation Code, no appropriation is made by this act and the state
8shall not reimburse any local agency for any sales and use tax
9revenues lost by it under this act.
This act provides for a tax levy within the meaning of
11Article IV of the Constitution and shall go into immediate effect.
12However, the provisions of this act shall become operative on the
13first day of the first calendar quarter commencing more than 90
14days after the effective date of this act.
Section 24275 of the Health and Safety Code is
16amended to read:
(a) If the State Department of Public Health believes
18that the air monitoring standard for asbestos in public school
19buildings as specified in Section 49410.7 of the Education Code
20should be revised, it shall promulgate a regulation to that effect.
21(b) The department shall provide the Office of Public School
22Construction with appropriate sampling methodology for use in
23taking air samples in public school buildings.
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