HomeMy WebLinkAboutMINUTES - 05091995 - 1.49 TO: BOARD OF SUPERVISORS
Contra
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FROM: .� Col7lC.l
Phil Batchelor, County Administrator
County
DATE:
May 4 1995
SUBJECTJ
t LEGISLATION: SB 767 (Dills) - EXEMPTS SPECIFIED LIBRARIES FROM
PAYING SALES TAX ON THE PURCHASE OF NEW BOOKS
SPECIFIC REQUEST(::)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
I
RECOMMENDATION:
ADOPT a position in SUPPORT of SB 767 by Senator Dills which would
exempt from paying sales tax on the purchase of library books any
library which lost revenue as a result of the repeal of the Special
District Augmentation Fund.
BACKGROUND:
Under current law, libraries must pay sales tax on the purchase of
new books . In 1992, the Legislature exempted certain periodicals
purchased by libraries from sales tax. SB 767 would exempt from
paying sales tax on the purchase of new books those libraries which
lost funding as a result of the repeal of the Special District
Augmentation Fund. The Contra Costa County Library, of course,
lost a substantial amount of revenue when the SDAF was repealed.
The County Librarian estimates that passage of SB 767 would save
the County Library some $45, 000 annually which could be used to
maintain services to the public.
The County Librarian recommends that the Board of Supervisors
support SB 767 and this office concurs with that recommendation.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURES :
ACTION OF BOARD ON May 9. 1995 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.
ATTESTED 9 19%
Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF
cc: County Administrator SUPERVISORS AND COUNTY ADMINISTRATOR
County Librarian
Auditor-Controller
Les Spahnn; Heim, Noack, Kelly & Spa DEPUTY
CONTRA COSTA COUNTY LIBRARY
INTER-OFFICE MEMO
DATE: April 21, 1995
TO: Claude Van Marter, Assistant County Administrator
FROM: Anne Marie Gold, County Librarian -�
SUBJECT: SB 767
I would like to request that Contra Costa County take a SUPPORT position on SB 767
(Dills). The bill would exempt the Contra Costa County Library from having to pay
sales tax on the purchase of new library books. This bill would add 8.25% to the
purchasing power of the library to buy books, or approximately $45,000. SB 767 is
scheduled for its first hearing in the Senate Committee on Revenue and Taxation on May
3, 1995. Both Senators Boatwright and Petris are members of that committee and I
would like to be able to contact them to indicate that our County is in support of this
bill.
CONTRA COSTA COIIN
c:\j\amg\sb767 RECEIVED
EAPR2 51995
OFFICE OF
COUNTY ADMINISTRATOR
County of Los Angeles Public Library
7400 East Imperial Hwy., P.O. Box 7011, Downey, CA 90241-7011 �c
(310) 940-8461,TELEFAX (310) 803-3032 = == == ==
SANDRA F.REUBEN
COUNTY LIBRAWAN
March 27, 1995
.Anne Marie Gold
Contra Costa County Library
1750 Oak Park Blvd.
Pleasant Hill, CA 94523-4497
Dear Ms. Gold:
SB 767 (Dills)
As you may be aware, Senator Ralph Dills has introduced Senate Bill 767 which will
provide an exemption to certain libraries from paying sales tax on the purchase of new
library books. This exemption is limited to those libraries that lost revenue as a result of
the State's repeal of the Special District Augmentation Fund (SDAF). A copy of the bill
is enclosed.
Under current law, public libraries are required to pay sales tax on the purchase of new
library books. Exempting those purchases from sales tax will allow the specified libraries
to make more effective use of their limited budget resources. In 1992 the Legislature
approved a sales tax exemption for libraries on the purchase of certain periodicals.
SB 767 will extend a similar exemption to include books.
It is estimated that SB 767 will allow approximately $2 million in savings for those
libraries, based on 1991-92 levels, which can be used to buy additional books instead of
using those funds to pay sales taxes. This would be a better use of strained library
budgets, and will also help financially burdened libraries to meet the public's demand for
new books.
Serving the unincorporated areas of Los Angeles County and the cities of: Agoura Hills - Artesia -Avalon - Baldwin Park - Bell - Bell Gardens . Beltilower
- Bradbury - Carson - Claremont - Compton - Cudahy - Culver City - Diamond Bar - Duarte - EI Monte - Gardena - Hawaiian Gardens- Hawthorne -
Hermosa Beach- Hidden Hills - Huntington Park - La Canada Flintridge - La Habra Heights Lakewood - La Mirada • Lancaster - La Puente - La Verne
-Lawndale - Lomita - Lynwood - Malibu - Manhattan Beach .Maywood • Montebello Norwalk -Paramount • Pico Rivera - Rosemead •San Dimas -
San Fernando - San Gabriel - Santa Clarita • South EI Monte South Gate - Temple City - Walnut - West Covina • West Hollywood - Westlake Village
March 27, 1995 _ .
Page 2
I am requesting your support for SB 767 as one of the former SDAF property tax libraries
that would benefit from this bill. The bill has been referred to the Senate Committee on
Revenue and Taxation and is scheduled for hearing at 1:30 p.m. on Wednesday, May 3,
1995. 1 would appreciate your sending a letter of support to the Committee Chairman,
Senator Mike Thompson, and the other members of the committee. A copy of the
committee membership is enclosed for your information. You may also want to send a
letter of support to Senator Dills. Also, if you would be interested in providing testimony
in support of this bill when it comes before the Revenue and Taxation Committee for
hearing, please advise Polly Gardner of Senator Dills' staff. You may reach her at
(916) 445-5953.
1 would appreciate your assistance in supporting the passage of this legislation which will
provide some measure of help to those of us who were significantly affected by the repeal
of SDAF. If you have any questions, please call me at (310) 940-8400, or David Flint of
my staff at (310) 940-8406.
Sincerely,
Sound
Sandra F. Reuben
County Librarian
SFR:DF:jc
FAoommon\sb767.Rr
Attachments
c: Bill Siverling
SENATE BILL 767 (DILLS)
SALES TAX EXEMPTION ON LIBRARY BOOKS
During the past three years, California's public libraries were one of the most severely
impacted local government services suffering financial strain as a result of State budget
actions. The State's repeal of the Special District Augmentation Fund (SDAF) resulted
in the loss of $70 million in revenues to about 35 public library jurisdictions. In 1991-92
those libraries spent about $32 million on library books.
Under current law, public libraries are required to pay sales tax on the purchase of new
library books. Exempting those purchases from sales tax would allow the specified
libraries to buy approximately $2 million in additional books instead of using those funds
to pay sales taxes. In addition to being a better use of strained and limited library
budgets,this exemption would also help financially burdened libraries to meet the public's
demand for new books. In 1992 the Legislature approved a sales tax exemption for
libraries on the purchase of certain periodicals. This bill will extend a similar exemption
to library books.
The proposed exemption is limited to libraries that lost SDAF revenues. Approval of the
sales tax exemption for those libraries on the purchase of new books will allow them to
divert their limited budget resources to more effective uses. Further, by so limiting the
exemption, the impact on sales tax revenues will be minimized.
salestaxksbM.W
dt:3-27-95
4
t SENATE BILL No. 767
Introduced by Senators Dills, Alquist, Ayala, Calderon,
Costa, Craven, Hughes, Johannessen, O'Connell, and Petris
(Coauthor: Assembly Member Willard Murray)
5
February 23, 1995
An act to add Section 6365.5 to the Revenue and Taxation
Code,relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 767, as introduced, Dills. Sales and use taxes:
exemptions: library books.
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.
I That law provides various exemptions from that tax.
This bill would exempt from that tax the gross receipts from
the sale of books to a qualified library, which is defined as a
public library that has lost a share of funding through the
repeal of the Special District Augmentation Fund, 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
99
SB 767 — 2 —
and
2 —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.,
1 SECTION 1. Section 6365.5 is added to the Revenue
2 and Taxation Code, to read:
3 6365.5. (a) There are exempted from the taxes
4 imposed by this part, the gross receipts from the sale in
5 this state of, and the storage, use, or other consumption
6 in this state of, books purchased by a qualified library.
7 (b) For purposes of this section, `qualified library`
8 means a public library that has lost a share of funding
9 through the repeal of the Special District Augmentation
10 Fund which was established in each county pursuant to
11 former Section 98.6, and includes the following:
12 County of Los Angeles Public Library
13 Ventura County Library
14 Mono County Free Library
15 Altadena Library District
16 Alameda County Library
17 Santa Clara County Library
18 Humboldt County Library
rir 19 Yolo County Library
20 Palos Verdes Library District .
21 Imperial County Library
22 Marin County Free Library
23 Kings County Library
24 Stockton-San Joaquin County Library
25 Contra Costa Library
26 Monterey County Free Library
27 Santa Cruz Public Library
28 Mendocino County Library
29 Riverside City and County Public Library
30 Orange County Public Library
31 Solano County Library
99
- 3 — SB 767
1 San Mateo County Library
2 Sonoma County Library
3 Tulare County Free Library
4 Napa City-County Library
I t 5 Butte County Library
! 6 San Bernardino County Library
7 San Luis Obispo City-County Library
..r 8 Auburn-Placer County Library
9 San Benito County Free Library
10 Fresno County Public Library
. 11 Beaumont Library District
12 Palo Verde Valley Library District
j .13 San Diego County Library
14 Blanchard Community Library
15 Del Norte County Library District
16 SEC. 2. Notwithstanding Section 2230 of the Revenue
17 and Taxation Code, no appropriation is made by this act
18 and the state shall not reimburse any local agency for any
19 sales and use tax revenues lost by it under this act.
20 SEC. 3. This act provides for a tax levy within the
21 meaning of Article IV of the Constitution and shall go into
22 immediate effect. However, the provisions of this act shall
23 become operative on the first day of the first calendar
24 quarter commencing more than 90 days after the
25 effective date of this act.
O
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