BILL NUMBER: AB 204	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 8, 2011
	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  
taxes  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 specify that this exemption does not apply to
local sales and use taxes or transactions and use taxes  and
taxes from which revenues are deposited into the Local Public Safety
Fund, the Local Revenue Fund, or the Fiscal Recovery Fund  .

   This bill would take effect immediately as a tax levy. 

   This bill would take effect immediately as a tax levy, but its
operative date would depend on its effective date. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: 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  
the following terms have the fo   llowing meanings: 
    (1)    "Agricultural   wastes and
residues" include, but are not limited to, animal wastes, remains and
tallow, food wastes, recycled cooking oils, and pure vegetable oils.

    (2)     "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.   produces energy
for distribution using biomass materials. 
    (3) "Biomass materials" means any organic material not
derived from fossil fuels, including, but not limited to,
agricultural crops, agricultural wastes and residues, waste pallets,
crates, dunnage, manufacturing and construction wood wastes,
landscape and right-of-way tree trimmings, mill residues that result
from milling lumber, rangeland maintenance residues, biosolids,
sludge derived from organic matter, and wood and wood waste from
timbering operations. 
    (4) "Landscape and right-of-way tree trimmings" include all
solid waste materials that result from tree or vegetation trimming or
removal to establish or maintain a right-of-way on public or private
land for the provision of public utilities, including, but not
limited to, natural gas, water, electricity, and telecommunications,
for fuel hazard reduction resulting in fire protection and
prevention, or for the public's recreational use. 
   (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. 
   (d) Notwithstanding subdivision (a), the exemption provided by
this section shall not apply with respect to any tax levied pursuant
to Section 6051.2, 6051.5, 6201.2, or 6201.5, or pursuant to Section
35 of Article XIII of the California Constitution.  
  SEC. 2.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect. 
   SEC. 2.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect. However, the provisions of this act shall become
operative on the first day of the first calendar quarter commencing
more than 90 days after the effective date of this act.