(Thurmond D) Taxation: prison contracts: goods and services.
Summary: Current law imposes various taxes, including taxes on the privilege of engaging in certain activities. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges. This bill, for the privilege of contracting with a state prison, the Department of Corrections and Rehabilitation, or the Department of General Services to provide a state prison with goods, services, or both, would impose a tax on vendors, as defined, at the rate equal to 10% of the final contract price, as defined, for contracts entered into on or after the effective date of the bill.