SBX3 8 Senate Bill, 3rd Ext. Session

BILL NUMBER: SBX3 8	AMENDED
	BILL TEXT

	AMENDED IN SENATE  FEBRUARY 13, 2008

INTRODUCED BY   Committee on Budget and Fiscal Review

                        FEBRUARY 7, 2008

   An act  relating to the Budget Act of 2007  
to amend Section 6248 of the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 8, as amended, Committee on Budget and Fiscal Review. 
Budget Act of 2007.   Vehicles: sales and use taxes.
 
   The Sales and Use Tax Law imposes a tax on the gross receipts from
the storage, use, or other consumption in this state of tangible
personal property. Under existing law, there is a presumption that a
vehicle shipped or brought into this state within 90 days from the
date of its purchase was purchased from a retailer for storage, use,
or other consumption in this state, under specified circumstances.
 
   This bill would expand this presumption to a vehicle, vessel, or
aircraft brought into California within 12 months from the date of
its purchase, if that vehicle, vessel, or aircraft is (1) purchased
by a California resident, (2) subject to California's registration or
property tax laws during the first 12 months of ownership, or (3)
used or stored in this state more than 1/2 of the time during the
first 12 months of ownership. This bill would provide that the
presumption may be controverted by documentary evidence, as
specified. This bill would also provide that the presumption does not
apply to aircraft or vessels brought into this state, on or after
the effective date of this act, for the purpose of repair, retrofit,
or modification.  
   The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. The Governor issued a proclamation declaring a fiscal
emergency, and calling a special session for this purpose, on January
10, 2008.  
   This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on January 10, 2008,
pursuant to the California Constitution.  
   This bill, by expanding the application of an existing presumption
that requires the imposition of use tax on vehicles, vessels, and
aircraft purchased outside of this state, 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 2/3
of the membership of each house of the Legislature.  
   This bill would take effect immediately as a tax levy. 

   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2007. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee:  no   yes  .
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 6248 of the   Revenue
and Taxation Code   is amended to read: 
   6248.  (a) On and after  July 1, 2007   the
effective date of this section  , there shall be a rebuttable
presumption that any vehicle  , vessel, or aircraft  bought
outside of this state  , and  which is brought into
California within  90 days   12 months 
from the date of its purchase,  and which is subject to
registration under Chapter 1 (commencing with Section 4000) of
Division 3 of the Vehicle Code,  was acquired for storage,
use, or other consumption in this  state.  
state and is subject to use tax if any of the following occur: 

   (1) The vehicle, vessel, or aircraft was purchased by a California
resident as defined in Section 516 of the Vehicle Code.  
   (2) In the case of a vehicle, the vehicle was subject to
registration under Chapter 1 (commencing with Section 4000) of
Division 3 of the Vehicle Code during the first 12 months of
ownership.  
   (3) In the case of a vessel or aircraft, that vessel or aircraft
was subject to property tax in this state during the first 12 months
of ownership.  
   (4) The vehicle, vessel, or aircraft is used or stored in this
state more than one-half of the time during the first 12 months of
ownership. 
   (b) This  section shall become operative on July 1, 2007
  presumption may be controverted by documentary evi
  dence that the vehicle, vessel, or aircraft was purchased
for use outside of this state during the first 12 months of
ownership. This evidence may include, but is not limited to, evidence
of registration of that vehicle, vessel, or aircraft, with the
proper authority, outside of this state  . 
   (c) This section does not apply to any vehicle, vessel, or
aircraft used in interstate or foreign commerce pursuant to
regulations prescribed by the board.  
   (d) The amendments made to this section by the act adding this
subdivision do not apply to any vehicle, vessel, or aircraft that is
either purchased, or is the subject of a binding purchase contract
that is entered into, on or before the operative date of this
subdivision.  
   (e) (1) Notwithstanding subdivision (a), aircraft or vessels
brought into this state for the purpose of repair, retrofit, or
modification shall not be deemed to be acquired for storage, use, or
other consumption in this state.  
   (2) This subdivision does not apply if, during the period
following the time the aircraft or vessel is brought into this state
and ending when the repair, retrofit, or modification of the aircraft
or vessel is complete, more than 25 hours of airtime in the case of
an airplane or 25 hours of sailing time in the case of a vessel are
logged on the aircraft or vessel by the registered owner of that
aircraft or vessel or by an authorized agent operating the aircraft
or vessel on behalf of the registered owner of the aircraft or
vessel. The calculation of airtime or sailing time logged on the
aircraft or vessel does not include airtime or sailing time following
the completion of the repair, retrofit, or modification of the
aircraft or vessel that is logged for the sole purpose of returning
or delivering the aircraft or vessel to a point outside of this
state.  
   (3) This subdivision applies to aircraft or vessels brought into
this state for the purpose of repair, retrofit, or modification on or
after the operative date of this subdivision.  
   (f) The presumption set forth in subdivision (a) may be
controverted by documentary evidence that the vehicle was brought
into this state for the exclusive purpose of warranty or repair
service and was used or stored in this state for that purpose for 30
days or less. The 30-day period begins when the vehicle enters this
state, includes any time of travel to and from the warranty or repair
facility, and ends when the vehicle is returned to a point outside
the state. The documentary evidence shall include a work order
stating the dates that the vehicle is in the possession of the
warranty or repair facility and a statement by the owner of the
vehicle specifying dates of travel to and from the warranty or repair
facility. 
   SEC. 2.    This act addresses the fiscal emergency
declared by the Governor by proclamation on January 10, 2008,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution. 
   SEC. 3.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  
  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2007.