SB 208 Herb Sales Tax Exemption

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AB 208 - Herb Sales Tax Exemption

Assembly Bill 208 (Frommer), was sponsored by CAOMA, authored by Assemblyman Frommer, and co-authored by Assemblyman Shelley and Senator Burton. AB 208 would have allowed a partial sales tax exemption for herbs, herbal formulas, vitamins, minerals, dietary supplements, and orthotic devices that are used or furnished by acupuncturists in the performance of their professional services.

Official Bill Information

Assembly Bill 208  - The official California Legislative website index for AB 249, where you can find the status, history, analysis, and votes.

Summary and Text of AB 208

BILL NUMBER: AB 208    INTRODUCED

BILL TEXT

INTRODUCED BY   Assembly Member Frommer

(Coauthor:  Assembly Member Shelley)

(Coauthor:  Senator Burton)

FEBRUARY 9, 2001

An act to add Section 6018.3 to the Revenue and Taxation Code,

relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL'S DIGEST

AB 208, as introduced, Frommer.  Sales and use taxes:  partial

exemptions:  acupuncturists.

The Sales and Use Tax Law imposes a tax on the gross receipts from

the sale in this state of, or the storage, use, or other consumption

in this state of, tangible personal property.  That law provides

various exemptions and partial exemptions from that tax, including a

partial exemption for vitamins, minerals, dietary supplements, and

orthotic devices used or furnished by a licensed chiropractor in the

performance of his or her professional services.

This bill would additionally provide a partial exemption with

respect to any herb, herbal formula or preparation, vitamin, mineral,

dietary supplement, orthotic device, or other naturally occurring

substance included in the Encyclopedia of Chinese Materia Medica that

is used or furnished by an acupuncturist in the performance of his

or her professional services.

Counties and cities are authorized to impose local sales and use

taxes in conformity with state sales and use taxes.  Exemptions from

state sales and use taxes enacted by the Legislature are incorporated

into the local taxes.

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.

This bill would take effect immediately as a tax levy, but its

operative date would depend on its effective date.

Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.

State-mandated local program:  yes.

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

SECTION 1.  Section 6018.3 is added to the Revenue and Taxation

Code, to read:

6018.3.  A licensed acupuncturist is a consumer of, and shall not

be considered a retailer with respect to, any herb, herbal formula or

preparation, vitamin, mineral, dietary supplement, orthotic device,

or other naturally occurring substance included in the Encyclopedia

of Chinese Materia Medica that is used or furnished by him or her in

the performance of his or her professional services.

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 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.