HomeMy WebLinkAboutSB 559 - Tax ExemptionsCITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION
ON SB 559 (WALTERS) AT ITS MEETING OF MARCH 24, 2009.
DATE: April 9, 2009
CONTENTS: SB 559 Language
RECOMMENDATION:
XR
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of March 24, 2009, and direct staff to prepare a letter of opposition for the Mayor's
signature with regard to SB 559 (Walters) relative to tax exemptions.
BACKGROUND:
The sales and use tax imposes a tax on the gross receipts from the sales, storage, use or other
consumption of property. If passed, SB 559 would suspend the imposition of sales tax from any
services purchased by a non-profit organization. The City of Palm Desert opposes any
legislation, which removes funds needed to provide services and facilities for its residents and
guests.
Therefore the Legislative Review Committee recommends that the City Council oppose SB 559
and direct staff to prepare a letter stating that position to appropriate legislators and committees
for thelylayor's signature.
PATRICIA SCULLY, CFE7
SENIOR MANAGEMENT ANALYST
/SH E I LA R. Git'L�GAN
ACM/COMMUNITY SERVI
PAttL GIBSON
DIRECTOR OF FINANCE/CITY TREASURER
N M. WOHLMUTH
Y MANAGER
CITY COUNCIL/ACTION
APPROVED V DENIED
RECEIVED .OTHER
MEETING DATE I -c,c1
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ABSENT: N?ne-
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VERIFIED BY! kne-/ra
Original on File with City Clerk's Office
State Net Bill Text Page 1 of 1
In bill text the following has special meaning
underline denotes added text
tcxi dcicicd text
2009 CA S 559
AUTHOR: Walters
VERSION: Introduced
VERSION DATE: 02/27/2009
SENATE BILL No. 559
INTRODUCED BY Senator Walters
FEBRUARY 27, 2009
An act relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 559, as introduced, Walters. Sales and use tax: services: exemption.
The Sales and Use Tax Law imposes a tax on the gross receipts from the sale of tangible personal
property sold at retail in this state, or on the sales price of tangible personal property purchased from a
retailer for the storage, use, or other consumption of that property in this state by the purchaser.
This bill would declare the intent of the Legislature, upon imposition of a tax under the Sales and Use
Tax Law upon certain services, to enact legislation that would exempt from that tax any services
purchased by a nonprofit organization.
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. It is the intent of the Legislature, upon imposition of a tax under the Sales and Use Tax
Law upon certain services, to enact legislation that would exempt from that tax any services purchased
by a nonprofit organization.
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