BILL NUMBER: AB 2553	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Achadjian

                        FEBRUARY 24, 2012

   An act to amend Section 6363.3 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2553, as introduced, Achadjian. Sales and use taxes: exemption:
charitable thrift stores.
   Existing sales and use tax laws impose 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.
Those laws provide various exemptions from these taxes, including,
until January 1, 2019, an exemption for the sale of retail items by
thrift stores operated by nonprofit organizations, if the purpose of
that thrift store is to obtain funding for medical, hospice, or
social services provided to individuals with HIV or AIDS by the
nonprofit organization.
   This bill would make a technical, nonsubstantive change to that
provision.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 6363.3 of the Revenue and Taxation Code is
amended to read:
   6363.3.  (a) There are exempted from the taxes imposed by this
part, the gross receipts from the sale in this state of, and the
storage, use, or other consumption in this state of, used pieces of
clothing, household items, or other retail items sold by thrift
stores operated by a nonprofit organization if the purpose of that
thrift store is to obtain revenue for the funding of medical,
hospice, or social services to chronically ill individuals, and at
least 75 percent of the net income derived from  the 
operations of the thrift store  are   is 
actually expended for the purpose of providing medical, hospice, or
social services to the chronically ill.
   (b) For purposes of this section, "nonprofit organization" means
an organization that provides medical, hospice, or social services to
individuals with a chronic, life-threatening illness, as defined in
subdivision (c) of Section 1568.01 of the Health and Safety Code, and
is exempt from  income  taxation under Section 23701d.
   (c) This section shall remain in effect only until January 1,
2019, and as of that date is repealed.