Amended in Senate May 4, 2016

Senate Bill No. 1210

Introduced by Senator Gaines

February 18, 2016

An act to add Section 6370.1 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

SB 1210, as amended, Gaines. Sales and use taxes: exemption: school supplies.

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 various exemptions from the taxes imposed by those laws.

This bill would provide an exemption from those taxes for the gross receipts from the sale of, and the storage, use, or other consumption of, clothing, footwear, school supplies, books, computers, and begin delete education end delete begin insert educational end insert computer software, begin insert subject to specified limits, end insert during a specified 2-day period in August of each year, commencing in 2017.

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 generally 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, transactions and use taxes, and specified state taxes from which revenues are deposited into the Local Public Safety Fund, the Local Revenue Fund, the Local Revenue Fund 2011, the begin delete State’s end delete begin insert state’s end insert Education Protection Account, or the Fiscal Recovery Fund.

This bill would take effect immediately as a tax levy.

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 6370.1 is added to the Revenue and
Taxation Code, to read:

6370.1.  

(a) In 2017 and each calendar year thereafter, for the
two-day period beginning at 12:01 a.m. on the second Saturday
of August and ending at 11:59 p.m. on the following day, there
are exempted from the taxes imposed by this part the gross receipts
from the sale of, and the storage, use, or other consumption in this
state of, begin delete clothing, footwear, school supplies, books, computers,
and educational computer software end delete begin insert qualified tangible personal
property end insert if that sale is transacted at the retailer’s physical place of
business.

begin insert

(b) For purposes of this section, the following terms have the
following meanings:

end insert begin insert

(1) “Qualified tangible personal property” means all of the
following:

end insert begin insert

(A) Clothing, if the gross receipts or sales price from the sale
or purchase of the clothing is one hundred dollars ($100) or less.

end insert begin insert

(B) Footwear, if the gross receipts or sales price from the sale
or purchase of the footwear is one hundred dollars ($100) or less.

end insert begin insert

(C) School supplies, if the gross receipts or sales price from the
sale or purchase of the school supply is sixty dollars ($60) or less.

end insert begin insert

(D) Books, if the gross receipts or sales price from the sale or
purchase of the book is one hundred dollars ($100) or less.

end insert begin insert

(E) Computers, for the portion of the gross receipts or sales
price from the sale or purchase of the computer that does not
exceed one thousand dollars ($1,000).

end insert begin insert

(F) Educational computer software, for the portion of the gross
receipts or sales price from the sale or purchase of the educational
computer software that does not exceed three hundred dollars
($300).

end insert begin insert

(2) “School supplies” means all of the following:

end insert begin insert

(A) Binders.

end insert begin insert

(B) Book bags and backpacks.

end insert begin insert

(C) Calculators.

end insert begin insert

(D) Cellophane tape.

end insert begin insert

(E) Blackboard chalk.

end insert begin insert

(F) Compasses.

end insert begin insert

(G) Composition books.

end insert begin insert

(H) Crayons.

end insert begin insert

(I) Erasers.

end insert begin insert

(J) Facial tissue.

end insert begin insert

(K) Expandable folders, pocket folders, plastic folders, and
manila folders.

end insert begin insert

(L) Glue, paste, and paste sticks.

end insert begin insert

(M) Highlighters.

end insert begin insert

(N) Index cards.

end insert begin insert

(O) Index card boxes.

end insert begin insert

(P) Legal pads.

end insert begin insert

(Q) Lunch boxes.

end insert begin insert

(R) Markers.

end insert begin insert

(S) Notebooks.

end insert begin insert

(T) Paper of all of the following types:

end insert begin insert

(i) Loose leaf ruled notebook paper.

end insert begin insert

(ii) Copy paper.

end insert begin insert

(iii) Graph paper.

end insert begin insert

(iv) Tracing paper.

end insert begin insert

(v) Manila paper.

end insert begin insert

(vi) Colored paper.

end insert begin insert

(vii) Poster board.

end insert begin insert

(viii) Construction paper.

end insert begin insert

(U) Pencil boxes and other school supply boxes.

end insert begin insert

(V) Pencil sharpeners.

end insert begin insert

(W) Pencils.

end insert begin insert

(X) Pens.

end insert begin insert

(Y) Protractors.

end insert begin insert

(Z) Rulers.

end insert begin insert

(AA) Scissors.

end insert begin insert

(AB) Writing tablets.

end insert begin delete

(b)

end delete

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

(2) Notwithstanding subdivision (a), the exemption provided
by this section shall not apply with respect to any tax levied
pursuant to Section 6051.2, 6051.15, 6201.2, or 6201.15, or
pursuant to Section 35 or 36 of Article XIII of the California
Constitution.

SEC. 2.  

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