HomeMy WebLinkAboutMINUTES - 07171990 - 1.36 l-
1-036
TO: BOARD OF SUPERVISORS �-sE.•L Contra
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FROM:
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Phil Batchelor, County Administrator x� COUnty
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DATE: July 10, 1990 s,q•���r -
SUBJECT: LEGISLATION: AB 3865 (Bates)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
Indicate that the Board of Supervisors continues to SUPPORT AB
3865 by Assemblyman Bates which would prohibit any taxpayer in
California from taking a deduction against their income taxes for
any expenses paid or incurred by the taxpayer to advertise the
sale, use or other consumption of cigarettes or any other tobacco
products.
BACKGROUND:
On April 10, 1990 the Board of Supervisors voted to support AB
3865 as introduced. On June 5, 1990 the Board of Supervisors
voted to continue its support of the bill as it was amended on
April 30, 1990. On June 20, 1990 the bill was amended again.
Under the current personal income tax law and bank and
corporation tax law deductions are allowed for various
expenditures, including all ordinary and necessary expenses paid
or incurred during the year in carrying on any trade or business.
Assemblyman Tom Bates has introduced AB 3865 which, as amended
June 20, 1990, would delete as a tax deduction any expenses paid
or incurred to advertise the sale, use or consumption of
cigarettes or any other tobacco products. The word "advertise"
is defined as including the use of a newspaper, magazine or other
CONTINUED ON ATTACHMENT: $_YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON Ju l y 1 7., 1_990 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
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.
CC: ATTESTED
JUL 17 1.990
PHIL BATCHELOR,CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
Please see Page 2.
BY ,DEPUTY
M382 (10/88)
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46
publication, book, notice, circular, pamphlet, letter, handbill,
tip sheet, poster, bill, sign, placard, card, label, tag, window
display, store sign, or any other means or methods now or
hereafter employed to sell or promote cigarettes or any . other
tobacco. products.
Advertising includes all cigarette and tobacco product
advertising done by tobacco manufacturers, distributors, and
retailers. In cases where the advertising space is shared by
several products, including cigarettes or any other products
containing tobacco, the tobacco portion of the advertisement must
be prorated for disallowance of the deduction.
Advertising aimed at discouraging smoking or the use of
cigarettes or any other products containing tobacco is exempt
from this disallowance.
The disallowance would be applicable to taxable or income years
beginning on or after January. l, 1991.
Since AB 3865 eliminates the deduction of advertising for
cigarettes or other tobacco products it is consistent with past
positions of the Board of Supervisors opposing the smoking of
tobacco products as a personal health risk. It is therefore
recommended that the Board of Supervisors continue to indicate
its support for AB 3865.
AB 3865 is pending a hearing in the Assembly Revenue & Taxation
Committee.
cc: Assemblyman Tom Bates
County Administrator
Health Services Director
Director of Public Health
Les Spahnn, SRJ. Jackson, Barish & Associates