BILL NUMBER: SB 809 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 23, 2009
INTRODUCED BY Committee on Veterans Affairs (Senators Denham
(Chair), Cedillo, Correa, Maldonado, Negrete McLeod, Wiggins, and
Wyland)
FEBRUARY 27, 2009
An act to add Section 6363.9 6018.3
to the Revenue and Taxation Code, relating to taxation, to take
effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 809, as amended, Committee on Veterans Affairs. Sales and use
taxes: exemption consumers : veterans:
itinerant vendors.
Existing law provides various benefits for a veteran, especially a
disabled veteran, who has received an honorable discharge from
service, including reduced fees for hunting and sport fishing
licenses, passes to state park system facilities, and exemptions from
city and county license fees and license taxes.
Existing law, the Sales and Use Tax Law, imposes a tax on the
gross receipts from the sale in this state of, or the storage, use,
or other consumption in this state of, tangible personal property.
That law provides various exemptions from that tax.
This bill would additionally exempt from that tax the sale of, or
the storage, use, or other consumption of, any goods, wares, or
merchandise, other than spirituous, malt, vinous or other
intoxicating liquor, owned by a disabled, honorably discharged
veteran who qualifies as a qualified itinerant vendor, as specified.
Counties and cities are authorized to impose local sales and use
taxes in conformity with state sales and use taxes. Exemptions from
state sales and use taxes enacted by the Legislature are incorporated
into the local taxes.
The Sales and Use Tax Law imposes 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,
measured by sales price. That law, with certain exceptions, defines a
retailer as a seller who makes any retail sale of tangible personal
property and as a person who makes more than 2 retail sales of
tangible personal property during any 12-month period, and defines a
retail sale as a sale of tangible personal property for any purpose
other than resale in the regular course of business.
This bill would specify that a qualified itinerant vendor, as
defined, is a consumer, and not a retailer, of tangible personal
property owned by a qualified itinerant vendor, except for alcoholic
beverages, so that the retail sale subject to tax is the sale of
tangible personal property to the qualified itinerant vendor.
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 the Transactions and Use Tax Law
authorizes districts, as specified, to impose transactions and use
taxes in conformity with the Sales and Use Tax Law. Exemptions from
state sales and use taxes are incorporated in these taxes.
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: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6018.3 is added to the
Revenue and Taxation Code , to read:
6018.3. (a) A qualified itinerant vendor is a consumer of, and
shall not be considered a retailer of, tangible personal property
owned by a qualified itinerant vendor, except alcoholic beverages.
(b) For purposes of this section, a person is a "qualified
itinerant vendor"when all of the following apply:
(1) The person was a member of the United States Armed Forces, who
received an honorable discharge or a release from active duty under
honorable conditions.
(2) The person is unable to obtain a livelihood by manual labor
due to a service-connected disability.
(3) For the purposes of selling tangible personal property, the
person is a sole proprietor with no employees.
(4) The person has no permanent place of business in this state.
(c) For purposes of this section, "permanent place of business"
means any building or other permanently affixed structure, including
a residence, that is used in whole or in part for the purpose of
making sales of, or taking orders and arranging for shipment of,
tangible personal property. For purposes of this section, "permanent
place of business" does not include any building or other permanently
affixed structure, including a residence, used for any of the
following:
(1) The storage of tangible personal property.
(2) The cleaning or the storage of equipment or other property
used in connection with the manufacture or sale of tangible personal
property.
(d) This section shall not apply to either of the following:
(1) A person engaged in the business of serving meals, food, or
drinks to a customer at a location owned, rented, or otherwise
supplied by the customer.
(2) A person operating a vending machine.
SECTION 1. Section 6363.9 is added to the
Revenue and Taxation Code, to read:
6363.9. (a) There are exempted from the taxes imposed by this
part the gross receipts from the sales of, and the storage, use or
other consumption in this state of, any goods, wares or merchandise
owned by a qualified itinerant vendor, except spirituous, malt,
vinous or other intoxicating liquor.
(b) For the purposes of this section, a person is a "qualified
itinerant vendor" when all of the following apply:
(1) The person was a member of the United States Armed Forces, who
has received an honorable discharge or a release from active duty
under honorable conditions.
(2) The person is unable to obtain a livelihood by manual labor
due to a service-connected disability.
(3) The person has no fixed place of business.
(4) The person is a sole proprietor.
SEC. 2. Notwithstanding Section 2230 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse any local agency for any sales and use tax revenues lost by
it under this act.
SEC. 3. 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 calendar quarter commencing more than 90 days
after the effective date of this act.