BILL NUMBER: SB 2173	CHAPTERED  07/21/00

	CHAPTER   180
	FILED WITH SECRETARY OF STATE   JULY 21, 2000
	APPROVED BY GOVERNOR   JULY 21, 2000
	PASSED THE ASSEMBLY   JULY 6, 2000
	PASSED THE SENATE   MAY 24, 2000
	AMENDED IN SENATE   APRIL 26, 2000
	AMENDED IN SENATE   MARCH 30, 2000

INTRODUCED BY   Committee on Revenue and Taxation (Senators Chesbro
(Chair), Alpert, Burton, Johnston, and McPherson)

                        FEBRUARY 25, 2000

   An act to amend Section 8880.68 of the Government Code, relating
to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 2173, Committee on Revenue and Taxation.  Taxation:  lottery
prizes.
   Existing law provides that no state or local taxes shall be
imposed upon any prize awarded by the lottery.
   This bill would clarify that no state or local taxes shall be
imposed upon any amount received by a prizewinner pursuant to an
assignment, as specified.  This bill would make a specified
declaration that certain changes made by the bill do not constitute a
change in, but are declaratory of, existing law.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 8880.68 of the Government Code is amended to
read:
   8880.68.  Except as provided in subdivision (d), no state or local
taxes shall be imposed upon the following:
   (a) The sale of lottery tickets or shares of the lottery.
   (b) Any prize awarded by the lottery.
   (c) Any amount received by a prizewinner pursuant to an assignment
under Section 8880.325.
   (d) This section does not prohibit the imposition of property
taxes or license fees for any noncash prize that is awarded by the
lottery.
  SEC. 2.  The Legislature finds and declares that the amendments
made to Section 8880.68 of the Government Code by this act are
consistent with the intent of the amendments made to Section 8880.32
of the Government Code by Chapter 890 of the Statutes of 1994 and the
intent of the amendments adding Sections 8880.325, 8880.326, and
8880.327 to, and repealing Section 8880.32 of, the Government Code
made by Chapter 363 of the Statutes of 1995, and do not constitute a
change in, but are declaratory of, existing law.