| Old | New | Differences | |
|---|---|---|---|
| 1 | - | Amended IN Assembly | |
| 1 | + | Amended IN Assembly April 17, 2017 Amended IN Assembly March 21, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1072Introduced by Assembly Member BroughFebruary 16, 2017An act to add Section 6018.11 6010.17 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 1072, as amended, Brough. Sales and use taxes: consumer: exclusion: garment alterations.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. Existing law defines sale and purchase for these purposes and provides certain exclusions from those definitions.This bill would provide that sale and purchase do not include alterations to new or used garments if the alteration occurs after the retail sale of the new garment, the person performing the alteration was not the retailer of the new garment, and the person performing the alteration does not have an agreement with a clothing retailer to perform alterations for the clothing retailer or the clothing retailers customers, thus excluding the purchase or sale of those alterations from imposition of sales and use tax. As a result, the retail sale subject to tax would be the sale of tangible personal property used or furnished in the alteration to the person who performs the alteration.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.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 specify that certain sellers of tangible personal property are consumers, and not retailers, of the tangible personal property they sell. Existing law makes a person who received no more than 20% of his or her total gross receipts from the alteration of garments during the preceding calendar year a consumer of, and not a retailer with respect to, property used or furnished by that person in altering new or used clothing, provided that person meets specified conditions that include, among other things, that 75% or more of the persons total gross receipts represent charges for garment cleaning or dyeing services. This bill would provide that any person who performs the alteration of garments is a consumer of, and not a retailer with respect to, property used or furnished by that person in altering new or used garments, as provided, so that the retail sale subject to tax is the sale of tangible personal property to the person who performs the alteration.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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 6010.17 is added to the Revenue and Taxation Code, to read:6010.17. (a) Notwithstanding subdivision (b) of Section 6006 and subdivision (d) of Section 6010, sale and purchase, for the purposes of this part, do not include alterations to new or used garments if all of the following conditions are met:(1) The alteration occurs after the retail sale of the new garment.(2) The person performing the alteration was not the retailer of the new garment.(3) The person performing the alteration does not have an agreement with a clothing retailer to perform alterations for the clothing retailer or the clothing retailers customers.(b) For the purpose of this section, new garment means a garment that was not worn except for trying on or fitting.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 California Constitution and shall go into immediate effect. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act.SECTION 1.Section 6018.11 is added to the Revenue and Taxation Code, to read:6018.11.(a)Any person who creates or fabricates new garments to a customers specification or for retail sale is considered the retailer of those items and tax applies with respect to the sale of those items. (b)Any person who performs the alteration of garments shall be considered the consumer of, and not a retailer within the provisions of this part with respect to, property used or furnished by that person in altering new or used garments, provided that all of the following apply:(1)The alteration does not result in a new garment or different garment. (2)The person was not the retailer of the new garment.(3)The person performing the alterations does not have a formal agreement or informal agreement with a clothing retailer to perform alterations for the clothing retailers customers.(c)Sales tax shall not apply to the charges for alterations specified in subdivision (b). However, that person is a retailer of any other tangible personal property sold to consumers in the regular course of business and sales tax shall apply to the gross receipts from those sales. (d)For the purpose of this section:(1)Alteration means mending, shortening, lengthening, taking in, letting out, adding or removing material, rearranging, restyling, or otherwise altering garments.(2)Formal agreement means a contract to perform alterations of new garments for customers of the retailer. (3)Informal agreement means a verbal or written agreement between a person or alteration establishment whereby the person or alteration establishment offers a discount or preferential pricing to alter new items for customers of the retailer.(4)New garment means a garment that was not worn except for trying on or fitting.SEC. 2. Notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse cities and counties for any sales and use tax revenues lost by them under this act.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | Amended IN Assembly April 17, 2017 Amended IN Assembly March 21, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1072Introduced by Assembly Member BroughFebruary 16, 2017An act to add Section 6018.11 6010.17 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 1072, as amended, Brough. Sales and use taxes: consumer: exclusion: garment alterations.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. Existing law defines sale and purchase for these purposes and provides certain exclusions from those definitions.This bill would provide that sale and purchase do not include alterations to new or used garments if the alteration occurs after the retail sale of the new garment, the person performing the alteration was not the retailer of the new garment, and the person performing the alteration does not have an agreement with a clothing retailer to perform alterations for the clothing retailer or the clothing retailers customers, thus excluding the purchase or sale of those alterations from imposition of sales and use tax. As a result, the retail sale subject to tax would be the sale of tangible personal property used or furnished in the alteration to the person who performs the alteration.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.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 specify that certain sellers of tangible personal property are consumers, and not retailers, of the tangible personal property they sell. Existing law makes a person who received no more than 20% of his or her total gross receipts from the alteration of garments during the preceding calendar year a consumer of, and not a retailer with respect to, property used or furnished by that person in altering new or used clothing, provided that person meets specified conditions that include, among other things, that 75% or more of the persons total gross receipts represent charges for garment cleaning or dyeing services. This bill would provide that any person who performs the alteration of garments is a consumer of, and not a retailer with respect to, property used or furnished by that person in altering new or used garments, as provided, so that the retail sale subject to tax is the sale of tangible personal property to the person who performs the alteration.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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | Amended IN Assembly April 17, 2017 Amended IN Assembly March 21, 2017 | |
| 6 | 6 | ||
| 7 | - | Amended IN Assembly May 18, 2017 | |
| 8 | 7 | Amended IN Assembly April 17, 2017 | |
| 9 | 8 | Amended IN Assembly March 21, 2017 | |
| 10 | 9 | ||
| 11 | 10 | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION | |
| 12 | 11 | ||
| 13 | 12 | Assembly Bill No. 1072 | |
| 14 | 13 | ||
| 15 | 14 | Introduced by Assembly Member BroughFebruary 16, 2017 | |
| 16 | 15 | ||
| 17 | 16 | Introduced by Assembly Member Brough | |
| 18 | 17 | February 16, 2017 | |
| 19 | 18 | ||
| 20 | - | An act to add Section 6010.17 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 19 | + | An act to add Section 6018.11 6010.17 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 21 | 20 | ||
| 22 | 21 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 22 | ||
| 24 | 23 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 24 | ||
| 26 | - | AB 1072, as amended, Brough. Sales and use taxes: exclusion: garment alterations. | |
| 25 | + | AB 1072, as amended, Brough. Sales and use taxes: consumer: exclusion: garment alterations. | |
| 27 | 26 | ||
| 28 | - | 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. Existing law defines sale and purchase for these purposes and provides certain exclusions from those definitions.This bill | |
| 27 | + | 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. Existing law defines sale and purchase for these purposes and provides certain exclusions from those definitions.This bill would provide that sale and purchase do not include alterations to new or used garments if the alteration occurs after the retail sale of the new garment, the person performing the alteration was not the retailer of the new garment, and the person performing the alteration does not have an agreement with a clothing retailer to perform alterations for the clothing retailer or the clothing retailers customers, thus excluding the purchase or sale of those alterations from imposition of sales and use tax. As a result, the retail sale subject to tax would be the sale of tangible personal property used or furnished in the alteration to the person who performs the alteration.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.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 specify that certain sellers of tangible personal property are consumers, and not retailers, of the tangible personal property they sell. Existing law makes a person who received no more than 20% of his or her total gross receipts from the alteration of garments during the preceding calendar year a consumer of, and not a retailer with respect to, property used or furnished by that person in altering new or used clothing, provided that person meets specified conditions that include, among other things, that 75% or more of the persons total gross receipts represent charges for garment cleaning or dyeing services. This bill would provide that any person who performs the alteration of garments is a consumer of, and not a retailer with respect to, property used or furnished by that person in altering new or used garments, as provided, so that the retail sale subject to tax is the sale of tangible personal property to the person who performs the alteration.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. | |
| 29 | 28 | ||
| 30 | 29 | 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. Existing law defines sale and purchase for these purposes and provides certain exclusions from those definitions. | |
| 31 | 30 | ||
| 32 | - | This bill | |
| 31 | + | This bill would provide that sale and purchase do not include alterations to new or used garments if the alteration occurs after the retail sale of the new garment, the person performing the alteration was not the retailer of the new garment, and the person performing the alteration does not have an agreement with a clothing retailer to perform alterations for the clothing retailer or the clothing retailers customers, thus excluding the purchase or sale of those alterations from imposition of sales and use tax. As a result, the retail sale subject to tax would be the sale of tangible personal property used or furnished in the alteration to the person who performs the alteration. | |
| 33 | 32 | ||
| 34 | 33 | 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. | |
| 35 | 34 | ||
| 36 | 35 | Existing law requires the state to reimburse cities and counties for revenue losses caused by the enactment of sales and use tax exemptions. | |
| 37 | 36 | ||
| 38 | 37 | 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. | |
| 39 | 38 | ||
| 40 | 39 | This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date. | |
| 41 | 40 | ||
| 41 | + | 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 specify that certain sellers of tangible personal property are consumers, and not retailers, of the tangible personal property they sell. Existing law makes a person who received no more than 20% of his or her total gross receipts from the alteration of garments during the preceding calendar year a consumer of, and not a retailer with respect to, property used or furnished by that person in altering new or used clothing, provided that person meets specified conditions that include, among other things, that 75% or more of the persons total gross receipts represent charges for garment cleaning or dyeing services. | |
| 42 | + | ||
| 43 | + | ||
| 44 | + | ||
| 45 | + | This bill would provide that any person who performs the alteration of garments is a consumer of, and not a retailer with respect to, property used or furnished by that person in altering new or used garments, as provided, so that the retail sale subject to tax is the sale of tangible personal property to the person who performs the alteration. | |
| 46 | + | ||
| 47 | + | ||
| 48 | + | ||
| 49 | + | 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. | |
| 50 | + | ||
| 51 | + | ||
| 52 | + | ||
| 53 | + | Existing law requires the state to reimburse cities and counties for revenue losses caused by the enactment of sales and use tax exemptions. | |
| 54 | + | ||
| 55 | + | ||
| 56 | + | ||
| 57 | + | 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. | |
| 58 | + | ||
| 59 | + | ||
| 60 | + | ||
| 61 | + | This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date. | |
| 62 | + | ||
| 63 | + | ||
| 64 | + | ||
| 42 | 65 | ## Digest Key | |
| 43 | 66 | ||
| 44 | 67 | ## Bill Text | |
| 45 | 68 | ||
| 46 | - | The people of the State of California do enact as follows:SECTION 1. Section 6010.17 is added to the Revenue and Taxation Code, to read:6010.17. (a) | |
| 69 | + | The people of the State of California do enact as follows:SECTION 1. Section 6010.17 is added to the Revenue and Taxation Code, to read:6010.17. (a) Notwithstanding subdivision (b) of Section 6006 and subdivision (d) of Section 6010, sale and purchase, for the purposes of this part, do not include alterations to new or used garments if all of the following conditions are met:(1) The alteration occurs after the retail sale of the new garment.(2) The person performing the alteration was not the retailer of the new garment.(3) The person performing the alteration does not have an agreement with a clothing retailer to perform alterations for the clothing retailer or the clothing retailers customers.(b) For the purpose of this section, new garment means a garment that was not worn except for trying on or fitting.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 California Constitution and shall go into immediate effect. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act.SECTION 1.Section 6018.11 is added to the Revenue and Taxation Code, to read:6018.11.(a)Any person who creates or fabricates new garments to a customers specification or for retail sale is considered the retailer of those items and tax applies with respect to the sale of those items. (b)Any person who performs the alteration of garments shall be considered the consumer of, and not a retailer within the provisions of this part with respect to, property used or furnished by that person in altering new or used garments, provided that all of the following apply:(1)The alteration does not result in a new garment or different garment. (2)The person was not the retailer of the new garment.(3)The person performing the alterations does not have a formal agreement or informal agreement with a clothing retailer to perform alterations for the clothing retailers customers.(c)Sales tax shall not apply to the charges for alterations specified in subdivision (b). However, that person is a retailer of any other tangible personal property sold to consumers in the regular course of business and sales tax shall apply to the gross receipts from those sales. (d)For the purpose of this section:(1)Alteration means mending, shortening, lengthening, taking in, letting out, adding or removing material, rearranging, restyling, or otherwise altering garments.(2)Formal agreement means a contract to perform alterations of new garments for customers of the retailer. (3)Informal agreement means a verbal or written agreement between a person or alteration establishment whereby the person or alteration establishment offers a discount or preferential pricing to alter new items for customers of the retailer.(4)New garment means a garment that was not worn except for trying on or fitting.SEC. 2. Notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse cities and counties for any sales and use tax revenues lost by them under this act.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act. | |
| 47 | 70 | ||
| 48 | 71 | The people of the State of California do enact as follows: | |
| 49 | 72 | ||
| 50 | 73 | ## The people of the State of California do enact as follows: | |
| 51 | 74 | ||
| 52 | - | SECTION 1. Section 6010.17 is added to the Revenue and Taxation Code, to read:6010.17. (a) | |
| 75 | + | SECTION 1. Section 6010.17 is added to the Revenue and Taxation Code, to read:6010.17. (a) Notwithstanding subdivision (b) of Section 6006 and subdivision (d) of Section 6010, sale and purchase, for the purposes of this part, do not include alterations to new or used garments if all of the following conditions are met:(1) The alteration occurs after the retail sale of the new garment.(2) The person performing the alteration was not the retailer of the new garment.(3) The person performing the alteration does not have an agreement with a clothing retailer to perform alterations for the clothing retailer or the clothing retailers customers.(b) For the purpose of this section, new garment means a garment that was not worn except for trying on or fitting. | |
| 53 | 76 | ||
| 54 | 77 | SECTION 1. Section 6010.17 is added to the Revenue and Taxation Code, to read: | |
| 55 | 78 | ||
| 56 | 79 | ### SECTION 1. | |
| 57 | 80 | ||
| 58 | - | 6010.17. (a) | |
| 81 | + | 6010.17. (a) Notwithstanding subdivision (b) of Section 6006 and subdivision (d) of Section 6010, sale and purchase, for the purposes of this part, do not include alterations to new or used garments if all of the following conditions are met:(1) The alteration occurs after the retail sale of the new garment.(2) The person performing the alteration was not the retailer of the new garment.(3) The person performing the alteration does not have an agreement with a clothing retailer to perform alterations for the clothing retailer or the clothing retailers customers.(b) For the purpose of this section, new garment means a garment that was not worn except for trying on or fitting. | |
| 59 | 82 | ||
| 60 | - | 6010.17. (a) | |
| 83 | + | 6010.17. (a) Notwithstanding subdivision (b) of Section 6006 and subdivision (d) of Section 6010, sale and purchase, for the purposes of this part, do not include alterations to new or used garments if all of the following conditions are met:(1) The alteration occurs after the retail sale of the new garment.(2) The person performing the alteration was not the retailer of the new garment.(3) The person performing the alteration does not have an agreement with a clothing retailer to perform alterations for the clothing retailer or the clothing retailers customers.(b) For the purpose of this section, new garment means a garment that was not worn except for trying on or fitting. | |
| 61 | 84 | ||
| 62 | - | 6010.17. (a) | |
| 85 | + | 6010.17. (a) Notwithstanding subdivision (b) of Section 6006 and subdivision (d) of Section 6010, sale and purchase, for the purposes of this part, do not include alterations to new or used garments if all of the following conditions are met:(1) The alteration occurs after the retail sale of the new garment.(2) The person performing the alteration was not the retailer of the new garment.(3) The person performing the alteration does not have an agreement with a clothing retailer to perform alterations for the clothing retailer or the clothing retailers customers.(b) For the purpose of this section, new garment means a garment that was not worn except for trying on or fitting. | |
| 63 | 86 | ||
| 64 | 87 | ||
| 65 | 88 | ||
| 66 | - | 6010.17. (a) | |
| 89 | + | 6010.17. (a) Notwithstanding subdivision (b) of Section 6006 and subdivision (d) of Section 6010, sale and purchase, for the purposes of this part, do not include alterations to new or used garments if all of the following conditions are met: | |
| 67 | 90 | ||
| 68 | 91 | (1) The alteration occurs after the retail sale of the new garment. | |
| 69 | 92 | ||
| 70 | 93 | (2) The person performing the alteration was not the retailer of the new garment. | |
| 71 | 94 | ||
| 72 | 95 | (3) The person performing the alteration does not have an agreement with a clothing retailer to perform alterations for the clothing retailer or the clothing retailers customers. | |
| 73 | 96 | ||
| 74 | 97 | (b) For the purpose of this section, new garment means a garment that was not worn except for trying on or fitting. | |
| 75 | 98 | ||
| 76 | 99 | 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. | |
| 77 | 100 | ||
| 78 | 101 | 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. | |
| 79 | 102 | ||
| 80 | 103 | 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. | |
| 81 | 104 | ||
| 82 | 105 | ### SEC. 2. | |
| 83 | 106 | ||
| 84 | 107 | SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act. | |
| 85 | 108 | ||
| 86 | 109 | SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act. | |
| 87 | 110 | ||
| 88 | 111 | SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act. | |
| 89 | 112 | ||
| 90 | 113 | ### SEC. 3. | |
| 114 | + | ||
| 115 | + | ||
| 116 | + | ||
| 117 | + | ||
| 118 | + | ||
| 119 | + | (a)Any person who creates or fabricates new garments to a customers specification or for retail sale is considered the retailer of those items and tax applies with respect to the sale of those items. | |
| 120 | + | ||
| 121 | + | ||
| 122 | + | ||
| 123 | + | (b)Any person who performs the alteration of garments shall be considered the consumer of, and not a retailer within the provisions of this part with respect to, property used or furnished by that person in altering new or used garments, provided that all of the following apply: | |
| 124 | + | ||
| 125 | + | ||
| 126 | + | ||
| 127 | + | (1)The alteration does not result in a new garment or different garment. | |
| 128 | + | ||
| 129 | + | ||
| 130 | + | ||
| 131 | + | (2)The person was not the retailer of the new garment. | |
| 132 | + | ||
| 133 | + | ||
| 134 | + | ||
| 135 | + | (3)The person performing the alterations does not have a formal agreement or informal agreement with a clothing retailer to perform alterations for the clothing retailers customers. | |
| 136 | + | ||
| 137 | + | ||
| 138 | + | ||
| 139 | + | (c)Sales tax shall not apply to the charges for alterations specified in subdivision (b). However, that person is a retailer of any other tangible personal property sold to consumers in the regular course of business and sales tax shall apply to the gross receipts from those sales. | |
| 140 | + | ||
| 141 | + | ||
| 142 | + | ||
| 143 | + | (d)For the purpose of this section: | |
| 144 | + | ||
| 145 | + | ||
| 146 | + | ||
| 147 | + | (1)Alteration means mending, shortening, lengthening, taking in, letting out, adding or removing material, rearranging, restyling, or otherwise altering garments. | |
| 148 | + | ||
| 149 | + | ||
| 150 | + | ||
| 151 | + | (2)Formal agreement means a contract to perform alterations of new garments for customers of the retailer. | |
| 152 | + | ||
| 153 | + | ||
| 154 | + | ||
| 155 | + | (3)Informal agreement means a verbal or written agreement between a person or alteration establishment whereby the person or alteration establishment offers a discount or preferential pricing to alter new items for customers of the retailer. | |
| 156 | + | ||
| 157 | + | ||
| 158 | + | ||
| 159 | + | (4)New garment means a garment that was not worn except for trying on or fitting. | |
| 160 | + | ||
| 161 | + | ||
| 162 | + | ||
| 163 | + | ||
| 164 | + | ||
| 165 | + | Notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse cities and counties for any sales and use tax revenues lost by them under this act. | |
| 166 | + | ||
| 167 | + | ||
| 168 | + | ||
| 169 | + | ||
| 170 | + | ||
| 171 | + | This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act. |