Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 89


Introduced by Assembly Member Travis Allen

January 7, 2015


An act tobegin delete amend Section 20end deletebegin insert add and repeal Section 6361.3end insert of the Revenue and Taxation Code, relating tobegin delete taxation.end deletebegin insert taxation, to take effect immediately, tax levy.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 89, as amended, Travis Allen. begin deleteTaxation. end deletebegin insertSales and use taxes: exemptions: public schools.end insert

begin 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. Those laws provide various exemptions from those taxes.

end insert
begin insert

This bill would, on and after January 1, 2016, and before January 1, 2021, 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, any items purchased by a K-12 public school or a K-12 public school district for use by that school or district.

end insert
begin 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, as specified, to impose transactions and use taxes in conformity 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.

end insert
begin insert

This bill would specify that the above-described exemption does not apply to local sales and use taxes, transactions and use taxes, and specified state taxes from which revenues are deposited into the Fiscal Recovery Fund, the Local Public Safety Fund, the Education Protection Account, the Local Revenue Fund, and the Local Revenue Fund 2011.

end insert
begin insert

This bill would take effect immediately as a tax levy.

end insert
begin delete

Existing law defines the term “board” to mean the State Board of Equalization for purposes of the Revenue and Taxation Code.

end delete
begin delete

This bill would make a technical, nonsubstantive change to that law.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 6361.3 is added to the end insertbegin insertRevenue and
2Taxation Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert6361.3.end insert  

(a) On and after January 1, 2016, there are exempted
4from the taxes imposed by this part, the gross receipts from the
5sale in this state of, and the storage, use, or other consumption in
6this state of, any items purchased by a K-12 public school or a
7K-12 public school district for use by that school or district.

8(b) (1) Notwithstanding the Bradley-Burns Uniform Local Sales
9and Use Tax Law (Part 1.5 (commencing with Section 7200)) and
10the Transactions and Use Tax Law (Part 1.6 (commencing with
11Section 7251)), the exemption established by this section shall not
12apply with respect to any tax levied by a county, city, or district
13pursuant to, or in accordance with, either of those laws.

14(2) Notwithstanding subdivision (a), the exemption established
15by this section shall not apply with respect to any tax levied
16pursuant to Section 6051.2, 6051.5, 6201.2, or 6201.5, pursuant
17to Section 35 and subdivision (f) of Section 36 of Article XIII of
18the California Constitution, or any tax levied pursuant to Section
196051 or 6201 that is deposited in the State Treasury to the credit
20of the Local Revenue Fund 2011 pursuant to Section 6051.15 or
216201.15.

22(c) This section shall remain in effect only until January 1, 2021,
23and shall be repealed on January 1, 2022.

end insert
P3    1begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

This act provides for a tax levy within the meaning of
2Article IV of the Constitution and shall go into immediate effect.

end insert
begin delete3

SECTION 1.  

Section 20 of the Revenue and Taxation Code is
4amended to read:

5

20.  

“Board” shall mean the State Board of Equalization.

end delete


O

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