BILL NUMBER: AB 204	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  FEBRUARY 16, 2011

INTRODUCED BY   Assembly Member Halderman

                        JANUARY 27, 2011

   An act to add Section 6378.2 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 204, as amended, Halderman. Sales and use taxes: exemption:
biomass energy production.
   The Sales and Use Tax Law imposes a tax on retailers measured by
the gross receipts from the sale of tangible personal property sold
at retail in this state, or on the storage, use, or other consumption
in this state of tangible personal property purchased from a
retailer for storage, use, or other consumption in this state. That
law provides various exemptions from those taxes.
   This bill would exempt from those taxes the sale of, and the
storage, use, or other consumption in this state of, equipment
purchased by a biomass energy facility, as defined, for use in its
biomass energy production in this state.
   The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes
counties and cities to impose local sales and use taxes in conformity
with the Sales and Use Tax Law, and existing law authorizes
districts, as specified, to impose transactions and use taxes in
accordance with the Transactions and Use Tax Law, which conforms to
the Sales and Use Tax Law. Exemptions from state sales and use taxes
are incorporated in these laws. 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 cities and counties for sales and use tax
revenues lost by them pursuant to this bill.  
   This bill would specify that this exemption does not apply to
local sales and use taxes or transactions and use taxes. 
   This bill would take effect immediately as a tax levy. 
   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
automatically 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 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. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  yes   no  .


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

  SECTION 1.  Section 6378.2 is added to the Revenue and Taxation
Code, to read:
   6378.2.  (a) There are exempt from the taxes imposed by this part
the gross receipts from the sale of, and the storage, use, or other
consumption in this state of, equipment purchased by a biomass energy
facility for use in its biomass energy production in this state.
   (b) For purposes of this section, "biomass energy facility" means
a facility that engages in the controlled combustion, when separated
from other solid waste, of any of the following materials for the
purpose of producing electricity or heat:
   (1) Agricultural crop residues.
   (2) Bark, lawn, yard, and garden clippings.
   (3) Leaves, silvicultural residue, and tree and brush pruning.
   (4) Wood, wood chips, and wood waste.
   (5) Nonrecyclable pulp or nonrecyclable paper materials. 
   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.  
   (c) Notwithstanding any provision of the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200))
or the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251)), the exemption established by this section shall not
apply with respect to any tax levied by a county, city, or district
pursuant to, or in accordance with, either of those laws. 
   SEC. 3.  SEC. 2.   This act provides for
a tax levy within the meaning of Article IV of the Constitution and
shall go into immediate effect.