Sales tax: Adult Entertainment Venue Impact Fund.

The Sales and Use Tax Law imposes a sales tax on a retailer measured by the gross receipts from the retail sale in this state of tangible personal property and a use tax on the storage, use, or other consumption of tangible personal property in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. This bill would, in addition, impose a tax on retailers that operate adult entertainment venues, as defined, measured by the gross receipts from its sales of tangible personal property sold at retail in this state, at a rate of 20%, as provided. The tax would generally be collected, administered, and enforced in the same manner as the taxes imposed under the Sales and Use Tax Law. This bill would create the Adult Entertainment Venue Impact Fund and require that all revenues, less refunds and the costs of the administration of the tax, derived from the tax be transferred to the fund. This bill would provide that moneys in the fund, upon appropriation by the Legislature, be used to ameliorate the secondary effects of adult entertainment venues, as provided. This bill makes findings and declarations with regard to adult entertainment venues and the imposition of this tax. This bill would result in a change in state taxes for the purpose of increasing state revenues within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. 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.