BILL NUMBER: AB 1007	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Cook

                        FEBRUARY 18, 2011

   An act to add Section 6397 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1007, as introduced, Cook. Sales and use tax: exemption:
back-to-school products.
   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.
   This bill would provide an exemption from the sales tax for the
gross receipts from the retail sale of qualified back-to-school
products, as defined, sold to a qualified purchaser, as defined,
during a specified period in August of each year, commencing in 2012.

   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 conforms to
the Sales and Use Tax Law. Exemptions from state sales and use taxes
are incorporated into these laws. 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.
   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 6397 is added to the Revenue and Taxation Code,
to read:
   6397.  (a) In 2012 and each calendar year thereafter, for the
three-day period beginning at 12:01 a.m. on the first Friday of
August and ending at 12:00 midnight on the first Monday of August,
there are exempted from the computation of the amount of the sales
tax the gross receipts from the sale of qualified back-to-school
products to a qualified purchaser.
   (b) For purposes of this section, the following definitions shall
apply:
   (1) "Qualified back-to-school products" include:
   (A) Individual articles of clothing with a retail price that is
not more than one hundred dollars ($100).
   (B) Footwear with a retail price that is not more than one hundred
dollars ($100).
   (C) School supplies, including, but not limited to, pens, paper,
pencils, binders, notebooks, school textbooks, book bags, backpacks,
lunchboxes, and calculators with a retail price that is not more than
one hundred dollars ($100).
   (D) Sports equipment with a retail price that is not more than one
hundred dollars ($100).
   (2) "Qualified purchaser" means an individual who, during the
period described in subdivision (a), purchases the qualified
back-to-school products at the retailer's physical place of business.

  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.