Amended in Assembly May 21, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 717

Introduced by Assembly Member Gonzalez

(Principal coauthor: Senator Anderson)

(Coauthors: Assembly Members Campos, Dababneh, begin delete Cristina Garcia, end delete begin insert Cristina Garcia, end insert Melendez, Rodriguez, and Salas)

February 25, 2015

An act to add Section 6363.9 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

AB 717, as amended, Gonzalez. Sales and use taxes: exemption: diapers.

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. That law provides various exemptions from those taxes.

This begin delete bill end delete begin insert bill, until January 1, 2021, end insert 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, diapers for infants and begin delete toddlers. end delete begin insert toddlers, designated size 3 or under. 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, 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.

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: no.

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

SECTION 1.  

Section 6363.9 is added to the Revenue and
Taxation Code, to read:

6363.9.  

begin insert (a) end insert begin insert   end insert There are exempted from the taxes imposed by
this part the gross receipts from the sale in this state of, and the
storage, use, or other consumption in this state of, diapers designed,
manufactured, processed, fabricated, or packaged for use by infants
and begin delete toddlers. end delete begin insert toddlers, designated size 3 or under. end insert

begin insert

(b) This section shall remain in effect only until January 1, 2021,
and as of that date is repealed.

end insert

SEC. 2.  

Notwithstanding Section 2230 of the Revenue and
Taxation Code, no appropriation is made by this act and the state
shall not reimburse any local agency for any sales and use tax
revenues lost by it under this act.

SEC. 3.  

This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
However, the provisions of this act shall become operative on the
first day of the first calendar quarter commencing more than 90
days after the effective date of this act.