Sales and use tax: retail sale: counterfeit mark: pirated intellectual property.

The Sales and Use Tax Law imposes a sales tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state under the storage, use, or other consumption in this state of tangible personal property purchased from any retailer for storage, use. or other consumption in this state. For purposes of that law, a "retail sale" or "sale at retail" means a sale for any purpose other than resale in the regular course of business in the form of tangible personal property. This bill would provide that "retail sale" or "sale at retail" and "storage" or "use" also includes any sale of tangible personal property with a counterfeit mark on, or in connection with, that sale or any sale of tangible personal property that is pirated intellectual property, regardless of whether the sale is for resale in the regular course of business, as provided. This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This bill would take effect immediately as a tax levy.