AB 1280, as introduced, Maienschein. Sales and use taxes: exemption: tax holiday: small businesses.
Existing sales and use tax laws impose taxes 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 the taxes imposed by those laws.
This bill would exempt from those taxes the gross receipts from the sale of, and the storage, use, or other consumption of, tangible personal property sold by, or purchased from, a retailer that is a small business, as defined, on the Saturday following Thanksgiving beginning in 2016.
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. Exemptions from state sales and use taxes are incorporated into these laws.
This bill would specify that this exemption does not apply to local sales and use taxes and transactions and use taxes.
This bill would take effect immediately as a tax levy. However, the provisions of this act shall become operative on January 1, 2016.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 6372 is added to the Revenue and
2Taxation Code, to read:
(a) There are exempted from the taxes imposed by this
4part, the gross receipts from the sale of, and the storage, use, or
5other consumption in this state of, tangible personal property sold
6by, or purchased from, a retailer that is a small business, for the
7one-day period beginning at 12:01 a.m. on the Saturday following
8Thanksgiving and ending at midnight on that same day.
9(b) For the purposes of this section, the following shall apply:
10(1) “Small business” shall mean a retailer that remitted to the
11board less than two hundred thousand dollars ($200,000) in tax
12for the previous four calendar quarters.
13(2) “Small
business” also means a retailer that has been in
14operation for less than four calendar quarters and remitted less
15than an average of fifty thousand dollars ($50,000) in tax for each
16calendar quarter of operation.
17(c) Notwithstanding any provision of the Bradley-Burns Uniform
18Local Sales and Use Tax Law (Part 1.5 (commencing with Section
197200)) or the Transactions and Use Tax Law (Part 1.6
20(commencing with Section 7251)), the exemption established by
21this section does not apply with respect to any tax levied by a
22county, city, or district pursuant to, or in accordance with, either
23of those laws.
This act provides for a tax levy within the meaning of
25Article IV of the Constitution and shall go into immediate effect.
26However, the provisions of this act shall become operative on
27January 1, 2016.
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