BILL NUMBER: AB 1007	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 24, 2011

INTRODUCED BY   Assembly  Member   Cook
  Members   Cook   and Perea 

                        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 amended, Cook. Sales and use  tax 
 taxes  : 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  a
 qualified back-to-school  products  
product  , as defined,  sold  to a qualified
purchaser, as defined, during a specified period in August of each
year, commencing in 2012 and ending in 2016  .
   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   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, 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:  yes   no  .


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  until
January 1, 2016  , 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   11:59 p.m. on
the following Sunday  , 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   a qualified
back-to-school product  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).  
   (1) "Qualified back-to-school product" means any of the following
products, if the gross receipts from the sale of that product are one
hundred dollars ($100) or less:  
   (A) Backpacks.  
   (i) "Backpack" means a messenger bag or a pack with straps that a
person wears on his or her back, including a backpack with wheels if
the backpack can also be worn on the back.  
   (ii) "Backpack" shall not include an item that is commonly
considered luggage, a briefcase, an athletic bag, a duffle bag, a gym
bag, a computer bag, a purse, or a framed backpack.  
   (B) Binders.  
   (C) Blackboard chalk.  
   (D) Book bags.  
   (E) Calculators.  
   (F) Cellophane tape.  
   (G) Compasses.  
   (H) Composition books.  
   (I) Crayons.  
   (J) Dividers.  
   (K) Erasers. 
   (L) Folders, including expandable, pocket, plastic, or manila
folders.  
   (M) Geometry sets.  
   (N) Glue, paste, and glue sticks. 
   (O) Highlighters.  
   (P) Index cards.  
   (Q) Lunch boxes.  
   (R) Markers.  
   (S) Notebooks.  
   (T) Notepads.  
   (U) Pencil boxes and other school supply boxes.  
   (V) Pencils.  
   (W) Pencil sharpeners.  
   (X) Pens.  
   (Y) Protractors.  
   (Z) Rulers.  
   (AA) Scissors.  
   (AB) Student planners.  
   (AC) Writing tablets. 
   (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.

   (c) (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, 6051.5, 6201.2, or 6201.5, or pursuant to Section
35 of Article XIII of the California Constitution.  
  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.   SEC. 2.   This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.