HomeMy WebLinkAboutMINUTES - 01211997 - SD2 SD, 2
TO: BOARD OF SUPERVISORS SE L
,.�,. Contra
FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR o ~� 's Costa
County
DATE: January 15, 1997 -------
SUBJECT:
--KSUBJECT: LEGISLATION: AB 68 (V. Brown & Lempert) EXEMPTING THE SALE OF
ANIMALS FROM THE SALES TAX
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ADOPT a position in SUPPORT of AB 68 by Assemblywoman Valerie Brown and
Assemblyman Ted Lempert, which would exempt from the sales tax the sale of
animals by a city, county, or nonprofit animal welfare organization.
BACKGROUND:
Under current law, the County's Animal Services Department collects sales tax on
the sale price of animals from the animal shelter: $10.00 for dogs and $5.00 for cats.
Last year the Department's collected $27,500 from these sales, resulting in sales tax
revenue of $2,277. The Department does not collect sales tax on other charges
which are made at the time an animal is adopted, such as vaccinations, licensing
and spay/neuter deposits. Apparently some animal service departmentsdo collect
sales tax on the total price they charge the individual who is adopting the animal.
The Pinole Animal Shelter is within the City of Pinole. Therefore, the County
receives only 2.5% of the city's share of the sales tax, which is only a fraction of the
total sales tax collected, the bulk of which goes to the State. The Martinez Animal
Shelter is in the unincorporated area of the County. Therefore, the County retains
the local share of the sales tax, which, however, is only a small fraction of the total
sales tax collected.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
y RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
>C_APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON January 21, 1997 APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
ATTESTED January 21, 1997
Contact: e183
HELOR,CLERK OF THE BOARD OF
�� See Page 2 RS AND COUNTY A I RAT
OTY l_
Assemblymembers Brown and Lempert are jointly authoring AB 68, which would
exempt from the sales tax the sale of an animal. The Acting Animal Services
Director is recommending that the Board of Supervisors support AB 68. He notes
that supporting the bill will send a message to the public that the County is
concerned with the issue of pet overpopulation and in increasing the number of
animal adoptions. To the extent that not having to pay sales tax will assist in
increasing the number of animal adoptions it is felt to be worth the very small
revenue loss, which will not be more than $200 or $300 annually at most.
In those counties which collect sales tax on the total bill, including vaccinations,
licensing and spay/neutering, which can run to $60 or $70, the sales tax may be a
more significant issue and not having to pay it may be more of an encouragement
to adopt an animal. The fact is that the sales tax collected in Contra Costa County
is $ .41 for cats and $ .83 for dogs. This office agrees that the policy advantages of
increasing the adoption of animals far outweighs the slight revenue loss which the
County would sustain if the measure were to pass. We are, therefore, joining with
the Animal Services Department in recommending that the Board of Supervisors
support AB 68.
cc: County Administrator
Auditor-Controller
Acting Animal Services Director
Les Spahnn
Heim, Noack, Kelly & Spahnn
1121 L Street, Suite 100
Sacramento, CA 95814
Casey Sparks, Executive Director
Urban Counties Caucus
1100 K Street, Suite 101
Sacramento, CA 95814
-2-
CA AB 68 01/08/97 Page 2
California 1997-98 Regular Session
1997 CA AB 68
Introduced
961211
Brown
ASSEMBLY BILL No. 68
INTRODUCED BY Assembly Members Brown and Lempert
(Coauthor: Senator O'Connell)
DECEMBER 11, 1996
An act to add Section 6358 . 7 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL' S DIGEST
AB 68, as introduced, Brown. Sales and use taxes : exemptions :
animal shelter or nonprofit animal welfare organization: sale of
animal .
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 from that tax.
This bill would enact the Pet Adopt.i.on. Sales and. Use Tax Relief Act
of 1997 which would exempt from state and local sales and use taxes. any
animal when sold by a city, county, city and county, or other local
government animal shelter or nonprofit animal welfare organization, as
specified.
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 . This act shall be known as the Pet Adoption Sales and
SD, a--
CA AB 68 01/08/97 Page 3
Use Tax Relief Act of 1997 .
SEC. 2 . Section 6358 .7 is added to the Revenue and Taxation Code,
to read:
6358 .7 . (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, any animal when sold by a city,
county, city and county, or other local government animal shelter or
nonprofit animal welfare organization.
(b) For purposes of this section, "nonprofit animal welfare
organization" means an organization that is formed and operated for the
primary purpose of prevention of abuse, neglect, or exploitation of
animals, and is exempt from taxation under Section 23701d.
(c) The exemption provided by this section shall include any charge
made by the local government animal shelter or nonprofit animal welfare
organization in connection with the spaying or neutering or future
spaying or neutering of the animal , vaccinations or future vaccinations,
or similar service as a prerequisite to the sale of the animal .
SEC. 3 . 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. 4 . 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.
END OF REPORT
JAN-08-1997 14:25 CCC ANIMAL SERVICES 510 646 2991 P.02
Animial Services DepartmentDiane 1wasa
Contra Animal Senjc�*Exreatw
4M Imhoff Place
Martinez,Qklibmia 945x3-4393 Costa
(510)646-2995 County
657 Pinole Shores Drive
Pinole,Calftmia W64-2632
(510)374-3966
To: C. L. Van Marter, Assistant County Adrninj'straNlr
Frown: Michael G. Ross,Acting Director A.
Date: January 8, 1997
Subject: A. B,Bill 69 Brown (Animal Adoption Sales Tax)
The above referenced Assembly Bill provides for the elimination of Wes tax on the
adoption of animals from government operated animal shelters, The Bill does not
provide for reimbursement of local govemment agencies for lost revenue as a result of
the adoption of this legislation. Our Department currently collects sales tax on the sale
price of the animal, i.e., $10.00 for dogs and $5.00 for cats. Last year our revenue,from
these sales was$21,500 and we collmted$2,277 in sales tax.
Attached is an editorial that aplpezred in the January 6, 1997, edition of the,Times. We
have also received several phone calls from citizens in support of this legislation.
I recommend that the County support this legislation because our support sends a
message to the public that the County is concerned with the issue of pet overpopulation
and in increasing the number of animal adoptions. Our opposition to the proposed
legislation could have some negative political impact for the Board.
The Times editorial is inaccurate in that they assumed that sales tax is charged on the
entire adoption amount including vaccination, licensing and spay neuter deposits.
Therefore, I have included a,draft response to the Times editorial. I would appreciate
your comments regarding whether we should respond and if the proposed response is
appropriately worded.
Please let me know if you have any questions regarding the above.
cc: D- 1wasa,files;
JAN-08-1997 14:26 OCC ASI I MAL SERI)I CES 510 646 2991 P.03
fft sales' tax from pound adoptions
bout 850,000 dogs and cats will others don't.
enter animal shelters in Cali- For temple, Contra Costa County '
fc�rnia this year. Nearly two- does charge sales tax. It costs be- f
:'thirds of them will be euthanized. tween $48 and $72 to adopt an ani-
A bill introduced last month in the mal, depending on whether it's a dog :
California Assembly aims to improve or cat and whether it's a male or fe- .
the chances of some more of those male animal. So the sales tax would �
animals finding domes by reducing be a few dollars and could legiti-
the cost of adoption. mately make the difference for some v
Assemblywoman Valerie Brawn, D- low-income families. �
Kenwood, mad Board of Equalization Brown's bill would stipulate a clear
Chairman Johan Mehs introduced a and consistent statewide policy on
bill last month that would exempt taxation of pet adoptions from gov- ;
from state and local sales taxes the ernment and nonprofits.
fees and related costs incurred when Klebs, estimates the revenue Ioss at
people adapt pets from shelters. $900,000 annually. But he rightly t
The fees are usually imposed for notes that is a small tradeoff for the
services like spaying or neutering and potential benefit of providing more
vaccinations, Yet the policy is incon- families lovable pets and the dis- ;.
sistent, Some cities and counties graceful practice of killing so many 1
charge sales tax for adoptions and animals.
*MF4M1F 77
S i