SB 898, as amended, Nguyen. Sales and use taxes: exemption: animal blood.
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. Existing law provides for various exemptions from those taxes, including an exemption for certain sales of human blood and containers thereof.
This bill 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, animal whole blood, plasma, blood products, and blood derivatives, soldbegin insert by a nonprofit animal blood banking businessend insert for use in the cure, mitigation, treatment, or prevention of injury or disease in animals pursuant to a specified state law.
The bill also would require the State Board of Equalization to cancel any notice of determination and any related penalties and interest, and to not issue any notice of determination, with respect to the sale in this state of, and the storage, use, or other consumption in this state of, animal whole blood, plasma, blood products, and blood derivatives, soldbegin insert by a nonprofit animal blood banking businessend insert for use in the cure, mitigation, treatment, or prevention of injury or disease in animals pursuant to a specified state law. The bill would make findings regarding the public purpose of this provision.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes cities and counties to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are incorporated into the local tax laws.
Existing law requires the state to reimburse cities and counties for revenue losses caused by the enactment of sales and use tax exemptions.
This bill would provide that, notwithstanding these provisions, no appropriation is made and the state shall not reimburse cities and counties for sales and use tax revenues lost by them pursuant to this bill.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 6358.6 is added to the Revenue and
2Taxation Code, to read:
There are exempted from the taxes imposed by this
4part the gross receipts from the sale in this state of, and the storage,
5use, or other consumption in this state of, animal whole blood,
6plasma, blood products, and blood derivatives, soldbegin insert by a nonprofit
7animal blood banking businessend insert for use in the cure, mitigation,
8treatment, or prevention of injury or disease in animals pursuant
9to Section 9241 of the Food and Agricultural Code.
The Legislature finds and declares that animals have
11emergencies and illnesses that present a critical need for blood
12products, and that in enacting this act it is in the public interest to
13relieve from liability thosebegin delete personsend deletebegin insert nonprofit animal blood banking
P3 1businessesend insert that have not paid sales tax or collected sales tax
2reimbursement on their sales of animal blood products, thereby
3preventing undue hardship on thosebegin delete personsend deletebegin insert
nonprofit animal blood
4banking businessesend insert that offer this vital life service.
The State Board of Equalization shall cancel any notice
6of determination and any related penalties and interest, and shall
7not issue any notice of determination, with respect to the sale in
8this state of, and the storage, use, or other consumption in this state
9of, animal whole blood, plasma, blood products, and blood
10derivatives, soldbegin insert by a nonprofit animal blood banking businessend insert for
11use in the cure, mitigation, treatment, or prevention of injury or
12disease in animals pursuant to Section 9241 of the Food and
13Agricultural Code.
The Legislature finds and declares that the addition of
15Section 3 of this act serves a public purpose as described in Section
162 of this act, and does not constitute a gift of public funds within
17the meaning of Section 6 of Article XVI of the California
18Constitution.
Notwithstanding Section 2230 of the Revenue and
20Taxation Code, no appropriation is made by this act and the state
21shall not reimburse cities and counties for any sales and use tax
22revenues lost by them under this act.
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