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Business Taxes Law Guide—Revision 2024
Sales And Use Tax Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 4. Exemptions
Article 1. General Exemptions
Section 6363.4
6363.4. Military welfare society thrift stores. (a) There are exempted from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, tangible personal property sold by a thrift store located on a military installation and operated by a designated entity that, in partnership with the United States Department of Defense, provides financial, educational, and other assistance to members of the Armed Forces of the United States, eligible family members, and survivors that are in need.
(b) For purposes of this section, "designated entity" means a military welfare society described in Section 1033 of Chapter 53 of Part II of Subtitle A of Title 10 of the United States Code.
History—Added by Stats. 2009, Ch. 615 (SB 765), in effect October 11, 2009. Amended by Stats. 2010, Ch. 328 (SB 1330), in effect January 1, 2011, added "a" after "and operated by" and deleted the extra period after "are in need" in subdivision (a). Amended by Stats. 2013, Ch. 72 (AB 163), in effect August 12, 2013, substituted "2024" for "2014" after "January 1," in subdivision (c). Amended by Stats. 2022, Ch. 225 (SB 1041), in effect August 29, 2022, deleted subdivision (c), which read: "This section shall remain in effect only until January 1, 2024."
Note.—Section 2 of Ch. 226 (SB 1041) of Stats. 2022 states, "For the purpose of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following:
(a) The objective of the exemption allowed by this section is to provide an incentive for thrift stores to continue to operate on military installations in partnership with the United States Department of Defense to provide financial, educational, and other assistance to members of the Armed Forces of the United States, eligible family members, and survivors in need.
(b) The performance indicators used to determine if the exemption is achieving the stated objective shall be the amount of charitable giving by recipients of this relief and the number of service members who receive that aid.
(c) (1) The California Department of Tax and Fee Administration shall submit a report to the Legislature no later than January 1, 2028, regarding this exemption.
(2) The report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code."