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HomeMy WebLinkAboutMINUTES - 06101997 - C31 TO: BOARD OF SUPERVISORS Contra FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR Costa y .. June 2, 1997 County DATE: i45u�t''� SUBJECT: LEGISLATION: SUPPORT FOR SB 1013 (Calderon) SPECIFIC REOUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ADOPT a position of SUPPORT for SB 1013 by Senator Charles Calderon, which would impose a 5% gross receipts tax (additional sales tax) upon the sale or rental of hard-core pornography and adult entertainment with the proceeds to be used for law enforcement purposes. BACKGROUND: Senator Calderon has introduced SB 1013. As amended April 14, 1997, SB 1013 would do the following: . 1. Impose an additional 5% sales tax on defined hard-core pornography and adult entertainment. 2. Allocate the proceeds to the following: A. The Office of Criminal Justice Planning and the State Department of Health Services for allocation to programs that provide counseling and support services for victims of sexual and other violent crimes, including, but not limited to, battered women's shelters and rape crisis hotlines. CONTINUED ON ATTACHMENT: YES SIGHNrURE: -RECOMMENDATION OF COUNTY ADMINISTRATOR --RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON u e 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 June 10, 1997 Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF Cc: SUPERVISORS AND COUNTY ADMINISTRATOR See Page 2 BY �� DEPUTY B. District Attorneys, local law enforcement agencies and local governments for the investigation and prosecution of violent sexual crimes and for the investigation and prosecution of the production and distribution of obscene material, and the enforcement of legal restrictions relating to pornography and sexually oriented businesses and entertainment. Senator Calderon has asked the Board of Supervisors to take a support position on SB 1013 and Supervisor DeSaulnier has agreed to ask the Board to do so. cc: County Administrator District Attorney Sheriff-Coroner The Honorable Charles M. Calderon Senate Majority Leader Room 313 State Capitol Sacramento, CA 95814 Les Spahnn Heim, Noack, Kelly & Spahnn 1121 L Street, Suite 100 Sacramento, CA 95814 -2- SACRAMENTO OFFICE COMMITTEES. STATE CAPITOL,ROOM 313 APPROPRIATIONS SACRAMENTO.CA 9501a t ro 16)927531 s GOVERNMENTALORGANIZATION JUDICIARY IARY G11FrR+GT Prv1G4 " __ - LOCAL GOVERNME14T 400 N.MONTEHE"_O ULVO.,#101 •• ""����...�•- MONTEBELLO.CA 006+0 C.N 12131724-6176 ...5 e• #arx Q��rl�� :-�ih�ro�s•�•• TKIRSIETN:D1$TR7�T { V . April 29--1997 HonorabIle h4wk DeSarilnier ccaia c6n7 a County. Suite 120 LIM 18 Crow Canyon Court Yr San Ramon,CA 945$3 i Dear Supervisor DeSaulnier: I am writing to request the board's support for legislation I am carrying which would create an additional 5 percent sales tax on the We or rental of hard-core pornography and adult entertaiinent. The tax created by SR 1013 will apply to such products as X-rated video rentals, pay-per-view services,pornographic magazines,strip clubs,and pornographic computer g mes or transmissions. Revenues generated from this tax would: fiord local Iaw enforcement agencies and district attorneys for investigations and prosecutions Telated to violent sexual crimes and the production and distribution of obscene materials;support enforcement of existing restrictions on pornography and sexually-oriented,businesses;and provide funding to rape crisis centers and battered women's shelters. .4 7. 7. Applying•such a tax to pornography wi1C genera millions of dollars for these purses: AcWditg to the l"'ebmary is of U4.News and mor :Report- * Nationally,pornography generates$8 billion a yar eiu revenue. . * When an adult film is sold on pay-per-view,the cable operator typically kOeps 70 percent of the revenue. * Last year,guests spent about$175 million on adult movies in their rooms at Assuming just$1 billion in taxable revenue in California,the POMOgraphy tax could generate nearly$50 million. Alcohol and eigarettes are eulen ft subject to special taxes in California. The 25-cent per pack tax on cigarettes for anti-toha w education and research represents approximately 10 percent m IftTW ON$IE"C Lb PAM .�oAU3 Thank You for your consideration of this legislation. I have enclosed $copy of the measure for yatu review, if you Have further questions,please contact pilaz Onme of my office at (916)32?-S3 I5. OIA CRLES A CALDERON Senate Majority Leader 1-7 Attachment AMENDED IN SENATE APRIL 14, 1997 SENATE BILL, No. 1013 Introduced by Senator Calderon (Coauthors: Senators Hughes and Solis) (Coauthors• Asserrmbly Members Alquist; Baca, Caldera, Granlund, Havice; :Kuehl, Machado, Richter,; Scott, and Vil1'araiOsa) t February'27' 19.07 An act` to add a ees -6025 .ate . to` Part 14 5 1 (commencing wztb Section 33001) to` Division 2 of the Revenue andTaxation..Code relating to taxation;and.maki6g approprzatrorl therefor,: to takeffeet %rniediatelyy; tax LEGISLATIVE.COUNSEL,S.DIGEST.. SB 1013; as a.meuded;:Calderon: ..,S ;wje :# pe a eek- a ee;� :e e - a e e e ,ri y Taxation. porhogr-aphy tax. <, x The S1es and: Tse. Tax`haw imposes a.sles.and.use tax.on. x ein this . ossrecezptsfrorn th .salestate o#.and thestorage thegr use, or.other ccnsuinptzon zn;thrs state of tangzble personal property based on a spec Bed percentage of the:gross receipts from the sale ol;: or the sales price:o that property bill, would,:, for; .tlie privilege of .selling adult en tertamw- en t prod acts:and seruices at'.retail,. impose -a tax upon retailers at.-the rate of 5% of the gross receipts of any retailer from the.retail saleiof.adult entertainment products` 3 and services,asdefined; zn Misstate on..oraftei•,januar i 1998. It would also unpose a comparable excise.tax on:the.storage; 98 .w.a.'s_ .t..3L r.:l'..: ,'�=zhw-...,....... w..'ro1'. rf"wn.:-7.+ F•IYf.�^vr-..-_.a..Y,.f..i:a+J.sY !/9kh71d�i,11M aY ♦. v »ri+ro nw r...a. ..ra... w'i•» v.an r...a::i•. .r.....n.b r..M. a._............ r 6 SB 1013 — 2 — use, 2 —use, or other consumption in this state ofadult entertainment products and services purchased from any retailer on or after January 1, 1998, .and for which the tax was not paid by a retailer, as.provided.. The tax would generally.be. collected, administered, and enforced in the same manner as.the. tax imposed. under the Sales and Use Tax Law. By imposing.a new tax, this bill would result in a change in state.taxes for p' taxes revenues within the meaning of Section. 3 of Article XIII A of the California Constitution,.and thus would require forpassage the approval of 2/3 of the membership of each house of the Legislature. This bill would require that the revenues collected pursuant Io the new tax he.deposited m' the Victims of Violent:Crime Support.Fund,' which.the bill would create: Moneys in .the . fund;would be continuously appropriated to. the State Board of'Equalization to pay speci£zed costs of the. board and for purposes ofmaking refunds, to the Office:of Criminal Justke' . ` Plan_ging and the State Department of Health Services.for allocation to,programs that provide counseling and support services'for victims:of sexual.and.: pt.other. violecrimes, as specified, and to local governments and local lacy �_. en for&4pn2entauthoritiesfor theinves . gatson and p osecution of violent sexual:crunes.and.the:production and,.distribution . ofobscene material, and the enforcement oflegal restrictions relatingto pornography and,sexually oriented:businessesand entertainment.: This bill would cake effect immediately.as a.tax levy The :T-Tse pT-e..� from OtetimOsese byomt The P46eiig,:ltieeine . . . its fly. esrpesed `. s: This � Q: . .. .: ~, as ,' '.eek_ �e. e -�eeme er eyed a Vote:: r ?/3. Appropriatiomneyes: Fiscal.�eoinmittee: yes. State=mandated local:program: no; 98 i — 3 — SB 1013 �nf The people of the State of California do enact as follows: -er a 1 -I. geetie6025 is to t-he R e �d, i 2 SECTION 1. Part 14.5 (commencing with Section :ax 3 33001) is added to Division2oftheBevenueand.Taxa tion 4 Code,-'to read.• In r 5 . he y' . ' 6 PAIR T 14.5 ADULT ENTERTAINMENT TAX da 7 za j 8 CHAPTER L GENERAL PROVISIONS AND-DEFINITIONs 9 nt, 10 ,33001. : ..This part .is.known and may be. cited -as the ne. 1.1 "Adult Entertainment Tax Law,, he 12. .33002 . Except where the context otherwise requires, rd 13 the definitions .set forth in Part 1 '(commencing u.dM or 14 Section:6001). govern the`constr-uction of this part.- ce 15 33003. For purpose. of this part* or 16. (a) `Adult. entertainment products and services`,- )rt 17 includes-any and all products and services, the primary as ,�, 18. purpose of which is sexual stimulation, including; but not �w. .19 limited to. the rental or sale of X:rated video tapes, on 20 pornographic-pay.-per-yietiv services;phone sex services, on , 21. .pornographic.` magazines,.. pornographic computer. or. ns" 22 video games; :pornographic materials transmitted to 7d23. computers; admittance to. a. strip club, and products an 24 services sold at .. strip .club. "Adult entertainment , . 25 products:`and services" does not ...include legitimate' 26' medical, `scientc, .educational; artistic, political, or. .: 27 hterary material in. whatever form; including, but not ae . 28., limited to, publications, performances; Ims,- 29 . photographs; telephonic representations and Ile 30 descriptions; and .videotapes 3e 31 (b) "Pornography" means, subject to the exclusions .. 32. from °`adult..6nte ._Ainment products- and serviees" set ta 33 forth.ln.subdivision ::(a), all of the.following.•: ge 34 (1) -Images.ofactual orsimulated; or verbal orwritten e: 35: -representations or. . descriptions of, sodomy; -oral e: 36:: .copulation; sexual intercourse,. masturbation; bestiality, 3T genital or.rectal exposure, or the exposure of penism an 38. erect and turgid state. 98 98 SB 1013 — 4 - 1 41 (2) Live performances, characterized by the display of .' 2 complete nudity, that may include the performance of 3 actual or simulated sexual activities. 4 5 CHAPTER 2: IMPOSITION OF TAx 6 7 33011. In addition to any tax imposed under Chapter : 8 2 (commencing with Section 6051) of.Part 4 for the ' 9. privilege of selling adult entertainment products or. 10 ser vicesatretail, a taxisherebyimposed upon allretailers 11 at.the.rateof5percent ofthegrossreceipts.from'the retail 12 sale. n this state on or after;january_1, 1998, of all adult.. 13 entertainment products,.and services 14: . 33012 (a) .In addition to any.: tax :imposed under. 15Chapter.3 ;(commencing.tivith Section 6201) "ofPart.l,.an 16 excise.tax: s.herebyimposed.on the storage;,use, or other 17 consumption in thisstate of adultentertainrr�entproducts 18 and. ser.vices purchased. from .any, retailer on or after 19: Januar, 1;1998;for the storage; use, or otlier..consumpdoh 20 in his state,.at the rate of 5 percent of the ales price of 21 those products and services. ,,22 (b) :;The taX provided for it2:,ths secfon shall:not be 23 imposed upon:the;storage, use,,or other consumption of 24 , any adult entertainment product .or service .that. was `25.. purchased from a retailer that paid the taX unposed by 'i 26 .Seddbh: 33011; tylth respect 'to the retail sale :of`that 27 product or service. 28 . - 29 ;CHAPTER 3.. ..:.:COLLECTION AND ADMINISTRATION: „ 30 31.: 33021.., .: : 'o the: extent: feasible or..practicable; . the 32 provisions ofChaptor.5:(commencing M1. ection 6451), . 33. Chapter 6 (commencing with Section :6701), ;.Chapter 7 34 (commencing. with Section 6901), and Chapter 8.. :( 35. (commenaw with Section:7051) . of Part;l.ahall.goyern 36 determinations,' collec*ons of tax, overpayments and 37 , refunds,::and administration, under this part. 38 - 33022< The:board shall enforce,theprovisions of this 39 :part:and may prescribe,:adopt; and.:enforce rules and ' 40 regulations : relating to the : ' administration and 98 - 5 — SB 1013 play of , 1 enforcement of this.part. The board may prescribe the nee of `°° 2 extent to which any ruling and regulation shall be applied 3 without retroactive effect. 4 5 CHAPTER 4. . DisposmoN of PRocEEDs .6 . 5apter. . 7 33031. All amounts required to be paid to- the state �r the0 8 under this part shall be paid to the board in the form of cts or.. 9. remittances payable; to the State Board of Equalization. hailers 10 .The:board..shall transmit the payments to the Treasurer retail 11 to'be deposited in the State Treasury to the,'credit of the t adult. 12 . Victims:of.Violent Crime Support Fund; which is hereby. . 13 Berea ed . under 14 ;; 33032.: :Notwithstanding . . Section 13340 of the •t.l,.an 15 Government Code; the .Victims of Violent Crime Support .other 16 Fund `is. her=eby continuously appropriated: without 9ducts 17 regard to fiscal years as follows: • after (a) .:To..the State.Board ofEqualizatzonfor both of the iption 19 following rice of 20. .:: (1) To pay for the:�board's cost ofimplementation of 21 this part � . lot be 22. : ,(2) To pay refunds under.this part. Yon. of 23 :(b) The 'balance-to both of the;followmg:�. it was 24 {1) The Ofee 'of Criminal Justice Planning and the ed by � 25 State.Department of3ealth Services..for.allocation to f .that 2fi programs that-provide counseling:and support services 27 fog tims:of sexual and"other.tiolent cr7rnes, including; 28 brit not hrnrted to; uttered. womens.shelters and rape . v. 29 crisis hotlines Dlstdotattorneys.aocarlawenforcementagencies the 31 and local ;.go.Yernments: for the investigation and 32 prosecution of.. seM ..-crunes and the production . iter 7 33 and ::distzbuton : of : obscene . material, . .and , the `er , 8 34 enforcement oflegal r-estrzctions relating tfopornography, ('. �vern 35 and sexually..orented businesses:and.entertainment and :36 SES: 2, This act prgvides for a. tax levy within the: 3.7 : m..e ` ofArtiele:IV ofthe.Constitution and shallgo into f this 38 immediate;effect and 39. a 3= eece; e. and 98 98 i 1 • • • - - - - _ OR - - - - - • 1 - - - - - - - iz • y 1 -• - - - - - -- - i- - - -- - -• - - - i OWN 9 IN MANIS• I [ S' • •PM .• : : t : • :• :.• ZA • :. s- al- • VIA 1' : : i 1 = = : - - - - - r I • w : - 0 - - : : -• - : • :• 1 - : - : - : •- _ _ _ PR F 11 INN _ : r 0 MM •• - - --•--• _ _ e _ _ MIM.— _ • 11 r e ee r . ee p • o MOWN, oilil r — i( • --r. .- ,.�. �'.wm.!.s+..-s ,. .. e,�,..�.;.s..�..........„�_..;�....-_«.. ��.�..a�-s.t-,... _a.:..,��....-s- ,..N.e -r-�;„ ....�....,_._.J.+..::v,�,.: ��te•:.,r c.�-. SB 1013 — 8 — 1 +1* A €iseal a d analysis -.w.hieh. des iftte 2 a=T^ the erigine}geeiad aftd of eEteh 3 of Wiese a:t„res. If a speeifie affietiftt e€ `'6 -T-he : .ems -e whiehthe 7 by these e bee- eee {: 8 ift ififitte4ein g ta mpayer behm4er-,- extetit to `. 9 10 'mer eaek:ef these: ffe 11 . braseez} .ees � ; -. : -lieVV . 12 �,..,,,,.a;.a ee&t .. bet .`there i46 13 ee € ' fie sa�xe bene s.: . 14 - } : meeffie. g . :benefit . �..':the 15e 3. tie6e . e€bei .ft g:drefit 1.6 }eee g -e3s .# ie e&4 of the '.: e 17 18 19 se` : .0 { },, of -- '4 21- sheitid ee of eF aAa �.&v ef: .ere , 23 't : .:::#­m�#. s�: s a these tftm �► ee `: � eek.. to '27 4e .ire a€ .6#43er state 30 31 : : w . ifiteta4ed' ere (- -}- : ae e e tie e . :seems o 33 35 eeeeiee .sj�eei6l . 36 : '. , tee dieae.e 37 :.gam e€' e'' a :ffteefe 38 e e eF e: e e . �; s A �mese e� g eek aye g.'at �t� :, Are � cams, of : ,. 4039. a e€ -he r4gee :the:G �. Fundd -H the 98 �$ 1p13 1. Yee ere ' foll e 44ie yc- low wet g8 o 9$ .