BILL NUMBER: SB 607	CHAPTERED  09/24/00

	CHAPTER   609
	FILED WITH SECRETARY OF STATE   SEPTEMBER 24, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 23, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 30, 2000
	AMENDED IN ASSEMBLY   AUGUST 28, 2000
	AMENDED IN ASSEMBLY   AUGUST 8, 2000
	AMENDED IN ASSEMBLY   AUGUST 25, 1999
	AMENDED IN ASSEMBLY   AUGUST 16, 1999
	AMENDED IN ASSEMBLY   JULY 15, 1999
	AMENDED IN SENATE   MAY 17, 1999
	AMENDED IN SENATE   MAY 6, 1999

INTRODUCED BY   Senator Chesbro

                        FEBRUARY 23, 1999

   An act to add Section 32177.5 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 607, Chesbro.   Alcoholic Beverage Tax Law:  military
exemption.
   Under existing law, an excise tax is imposed on all beer, wine,
and distilled spirits sold in this state and on beer, wine, and
distilled spirits sold by manufacturers, rectifiers, or wholesalers,
or sellers of those alcoholic beverages with respect to which no tax
has been paid within areas over which the federal government
exercises jurisdictions at rates based upon various formulas
calculated according to volume and weight.
   This bill would exempt distilled spirits sold by brandy
manufacturers, distilled spirits manufacturers, rectifiers,
importers, and distilled spirits wholesalers from the excise tax
where the alcoholic beverages are sold to specified instrumentalities
of the armed forces of the United States located within the
geographical boundaries of the state.
   This bill would take immediate effect as a tax levy, but its
operative date would depend on its effective date.


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


  SECTION 1.  Section 32177.5 is added to the Revenue and Taxation
Code, to read:
   32177.5.  No tax shall be imposed upon the sale of distilled
spirits by brandy manufacturers, distilled spirits manufacturers,
rectifiers, importers, and distilled spirits wholesalers to the
following listed instrumentalities of the armed forces of the United
States organized under Army, Air Force, Navy, Marine Corps, or Coast
Guard regulations and located upon territory within the geographical
boundaries of the state:
   (a) Army, Air Force, Navy, Marine Corps, and Coast Guard
exchanges.
   (b) Officers', noncommissioned officers', and enlisted men's clubs
or messes.
   If any manufacturer, rectifier, importer or wholesaler has paid
the tax on alcoholic beverages, except beer and wine, thereafter sold
to an instrumentality of the Armed Forces so located, the taxpayer
may claim and shall be allowed credit with respect to the tax so paid
in any report filed or assessment paid under this part.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
However, the provisions of this act shall become operative on the
first day of the first month commencing more than 90 days after the
effective date of this act.