BILL NUMBER: AB 150	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Smyth

                        JANUARY 22, 2009

   An act to add Section 6398 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 150, as introduced, Smyth. Sales and use taxes: exemption:
energy efficient products.
   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.
   This bill would also exempt from that tax during a qualified
period, which would be defined as April 24 of each year beginning in
2010, energy efficient products, as defined, including specified
layaway agreements.
   Counties and cities are authorized to impose local sales and use
taxes in conformity with state sales and use taxes. Exemptions from
state sales and use taxes enacted by the Legislature are incorporated
into the local taxes.
   Section 2230 of the Revenue and Taxation Code provides that the
state will reimburse counties and cities for revenue losses caused by
the enactment of sales and use tax exemptions.
   This bill would provide that, notwithstanding Section 2230 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse local agencies for sales and use tax revenues
lost by them pursuant to this bill.
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 6398 is added to the Revenue and Taxation Code,
to read:
   6398.  (a) During a qualified period, 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, energy efficient products.
   (b) For purposes of this section, all of the following apply:
   (1) "Energy efficient products" means a product that meets or
exceeds the applicable ENERGY STAR efficiency requirements developed
by the United States Environmental Protection Agency and the United
States Department of Energy.
   (2) "Qualified period" means the period beginning at 12:00 a.m. on
each April 24 and ending at 11:59 p.m. on each April 24, which date
annually occurs during the week of Earth Day. The first qualified
period begins on April 24, 2010.
   (c) The exemption provided for by this section also includes any
of the following sales:
   (1) Layaway agreements entered into during the qualified period
specified in paragraph (2) of subdivision (b) for which the purchaser
has made a deposit of at least 10 percent of the sale price of the
energy efficient product.
   (2) The sale of an energy efficient product pursuant to an order
placed by the purchaser and paid for in full during the qualified
period specified in paragraph (2) of subdivision (b), notwithstanding
the fact that delivery of the energy efficient product is made
subsequent to the period of the exemption.
  SEC. 2.  Notwithstanding Section 2230 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse any local agency for any sales and use tax revenues lost by
it under this act.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.