AB 960: Sales and use taxes: exemptions: textbooks.

Session Year: 2017-2018
House: Assembly

Version:

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. The Sales and Use Tax Law provides various exemptions from those taxes.

This bill would exempt from those taxes the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, a textbook purchased by a student from an institution of higher education education, as defined, or sold by a person whose primary purpose is to provide textbooks to students attending institutions of higher education, for use as a learning resource in any course of study at an institution of higher education. The bill would define certain terms for those purposes.

The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes cities and counties to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws.

Existing law requires the state to reimburse cities and counties for revenue losses caused by the enactment of sales and use tax exemptions.This bill would provide that, notwithstanding these provisions, no appropriation is made and the state shall not reimburse cities and counties 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.

This bill would specify that this exemption would 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 Local Revenue Fund 2011.

This bill would make these provisions operative on a specified date following the effective date of any budget measure that specifically appropriates funds to the State Board of Equalization for its costs of administering these provisions.

This bill would take effect immediately as a tax levy.

Discussed in Hearing