SB 598, as amended, Hill. Sales and use taxes: consumer designation: all volunteer fire department.
The Sales and Use Tax Law, among other things, imposes a tax on retailers measured by the gross receipts from their sales of tangible personal property sold at retail in this state, and specifies that certain sellers of tangible personal property are consumers, and not retailers, of the tangible personal property they sell.
This bill would provide, until January 1,begin delete 2026,end deletebegin insert 2021,end insert that an all volunteer fire department, as defined, is a consumer, and not a retailer, of all tangible personal property sold by it, if the profits are used solely and exclusively in furtherance of the purposes of the all volunteer fire department, subject to specified limitations, so
that the retail sale subject to tax is the sale of tangible personal property to the all volunteer fire department.
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 generally 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 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 6018.10 is added to the Revenue and
2Taxation Code, to read:
(a) An all volunteer fire department is a consumer
4of, and shall not be considered a retailer within the provisions of
5this part of all tangible personal property sold by it, including, but
6not limited to, hot prepared food products and clothing, if the
7profits are used solely and exclusively in furtherance of the
8purposes of the all volunteer fire department.
9(b) For purposes of this section, an “all volunteer fire
10department” means an organization that meets all of the following
11requirements:
12(1) begin deleteAll members end deletebegin insertNo
member end insertshallbegin delete notend delete be paid a regular salary,
13butbegin insert a memberend insert may be compensated on an hourly or per incident
14basis.
15(2) The purpose of the organization is to protect the lives,
16property, and environment within a designated geographical area
17from fires, disasters, and emergency incidents through education,
18prevention, training, and emergency response.
19(3) begin deleteIs end deletebegin insertThe organization is end insertregularly organized for volunteer fire
20department purposesbegin delete thatend deletebegin insert
andend insert
qualifies as an exempt organization,
21either under Section 23701d or 23701f of this code or under Section
22501(c)(3) or 501(c)(4) of the Internal Revenue Code, having official
23recognition and full or partial support of the government of the
24county, city, or district in which the volunteer fire department is
P3 1located, and that has functions having an exclusive connection
2with the prevention and extinguishing of fires within the area of
3the county, city, or district extending official recognition for the
4benefit of the public generally and to lessen the burdens of the
5entity of governmentbegin delete whichend deletebegin insert thatend insert would otherwise be obligated to
6furnish that fire protection.
7(c) This section shall not apply if an all volunteer fire
8department, in each of
the two preceding calendar years, hasbegin insert grossend insert
9 receipts from the sale of tangible personal property of one hundred
10thousand dollars ($100,000) or more.
11(d) This section shall remain in effect only untilbegin delete January,end delete
12begin insert Januaryend insert 1,begin delete 2026,end deletebegin insert
2021,end insert and as of that date is repealed.
Notwithstanding Section 2230 of the Revenue and
14Taxation Code, no appropriation is made by this act and the state
15shall not reimburse any local agency for any sales and use tax
16revenues lost by it under this act.
This act provides for a tax levy within the meaning of
18Article IV of the Constitution and shall go into immediate effect.
19However, the provisions of this act shall become operative on the
20first day of the first calendar quarter commencing more than 90
21days after the effective date of this act.
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