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Taxation on Fiber Animals
Click here to view AB 1050
State Assemblyman Doug LaMalfa, a Republican from the 2nd District, has authored Assembly Bill No. 1050. Topic: Sales and use taxes:exemptions:fiber animals. Title: An act to add Section 63583 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
If passed, this bill would exempt llamas and alpacas sold in the State of California, as fiber animals, from sales and use tax. Current law already exempts some fiber animals, such as goats and sheep (see sample letter attached for more information). This legislation could benefit llama and alpaca raisers; Calpaca has launched a campaign by their members to write letters to the members of the Assembly Committee on Revenue and Taxation and wanted to share this information with llama owners should they wish to support the bill as well.
The bill is scheduled to be heard on 4/30/07 and we have until 4/23/07 to submit letters to the committee members. If you wish to write, letters should be sent to the Sacramento Offices of the Committee Members (see below), as well as to your own Assemblyperson, and can be mailed or faxed--do not send by e-mail. Keep letters to one page and let them know this is important to you. If you know someone who has left the state because of our Sales and Use Tax laws, or if you are considering moving your business to another state, let them know. For the letter to your own Assemblyperson, you might want to add the following: "...as a constituent and llama (or alpaca) rancher, I am writing to ask for your support of AB 1050." You might insert a few lines about why this bill is important to you and how passage would affect your life.
SAMPLE SUPPORT LETTER FOR AB 1050
-who to contact-
Please use this letter to assist you in writing your own letter, then mail to the two committees listed below and mail or fax to Assemblyman Arambula (we want him to get a bunch of letters before Tuesday, so if you can, please write something and fax it to him immediately). If you have the time, please also fax or send to the other Revenue and Taxation Committee members that Bruce listed in his earlier email, and also send to the Assembly member for your district. If you don't know who that is, go to:
http://www.legislature.ca.gov/legislators_and_districts/legislators/your_legislator.html
Assembly Committee on Revenue and Taxation
1020 N Street
Legislative Office Building, Room 162
Sacramento, CA 95814
and
Assembly Republican Policy Office
Michele Justin, Revenue & Taxation Consultant
1020 N Street
Legislative Office Building, Room 400
Sacramento, CA 95814
and
Juan Arambula- Democrat, District 31
State Capitol
P.O. Box 942849
Sacramento, CA 94249-0031
(916) 319 - 2131 Fax
Please be sure to mail or fax the letters to the Sacramento Offices of the Committee Members. You can use the local district office for your Assemblyman. Do not send by email. Keep it to one page, and let them know this is important to you. If you know someone who has left the state because of our Sales and Use Tax laws, or if you are considering moving your business to another state, let them know! For the letter to your own Assemblyman, you might want to add the following: …as a constituent and an alpaca (or llama) rancher/farmer, I am writing to ask for your support for AB1050. You might insert a few lines about why this is important to you and how passage of this bill would affect your life.
Make sure you also fax a copy of any letter you send to Assemblyman Doug La Malfa's Office at (916) 319-2102 since he is the author of this bill!!
Sample Letter
[Date]
Juan Arambula- Democrat, District 31
Capitol Office:
State Capitol
P.O. Box 942849
Sacramento, CA 94249-0031
RE: Support of AB 1050 - Sales and Use Taxes: Exemptions: Fiber Animals
Dear Assemblyman Arambula:
I strongly support Assembly Bill 1050 and request your support for AB 1050. 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. That law provides various exemptions from that tax, including an exemption for any form of animal life the products of which ordinarily constitute food for human consumption. AB 1050 would additionally exempt from those state taxes the gross receipts from the sale in this state of, and the storage, use, or other consumption of, any form of animal life used in fiber production, as defined.
Agriculture is the number one industry in California, which is the leading agricultural state in the country. Family owned farms produce most of the food and fiber in California and the economic strength of California's agricultural industry depends on farmers and ranchers being able to profitably market the products they raise. Alpacas and llamas are fiber animals that are increasing in popularity as alternative livestock enterprises that fit well into a small farming operation. Marginal pastureland, not prime farmland, is suitable for raising alpacas and llamas with some supplemental feeding. Alpaca and llama ranches and mills processing alpaca and llama fiber are contributing to the California economy by purchasing equipment, supplies and services to support their businesses and by providing employment. An increasing number of these ranches are retailing alpaca and llama products that they produce or purchase for resale. While we are still a young industry, we are growing and our contributions to the California economy are growing.
Today, California alpaca and llama owners are disadvantaged due to the application of the Sales and Use Tax Law on the sale or use of alpacas and llamas in this state, and California alpaca and llama owners are having a difficult time profitably building their businesses. Furthermore, although all animals used in the production of food or fiber are included in “business inventories” that are eligible for exemption from property taxes, some fiber animals, such as sheep and goats, are exempt from sales and use taxes when alpacas and llamas are not.
I am 100% behind AB 1050! It has the potential to significantly improve the economic strength of California's alpaca and llama industries by improving the marketability of our alpacas and llamas which, in turn, helps us build a strong, economically viable fiber and end-product industry. Thank you for your consideration on this very important issue. Should you have any questions, please do not hesitate to contact me.
Sincerely,
[Your Name]
[Your Address]
[Your Phone Number}
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