California Assembly Bill AB2553 Latest Draft

 BILL NUMBER: AB 2553INTRODUCED 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 (c) This section shall remain in effect only until January 1, 2019, and as of that date is repealed.