BILL NUMBER: AB 1376	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 4, 2011

INTRODUCED BY   Assembly Member Nestande
    (   Coauthors:   Assembly Members 
 Jeffries   and Silva   ) 
    (   Coauthor:   Senator   Harman
  ) 

                        FEBRUARY 18, 2011

   An act to add Section 6356.7 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1376, as amended, Nestande. Sales and use taxes: exemption:
renewable energy facility.
   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.
   This bill would exempt from those taxes the sale of, or the
storage, use, or other consumption of, tangible personal property
purchased for use by a person for the construction of a facility that
will use solar, biomass, wind, and geothermal energy to generate
electricity of  10 megawatts  one megawatt 
or greater.
   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 into 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 local agencies 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 to transactions and use taxes. 
   This bill would take effect immediately as a tax levy.
   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 6356.7 is added to the Revenue and Taxation
Code, to read:
   6356.7.   (a)    There are exempted 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, tangible
personal property purchased for use by a person for the construction
of a facility that will use solar, biomass, wind, and geothermal
energy to generate electricity of  10 megawatts 
 one megawatt  or greater. 
   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.  
   (b) 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.