BILL NUMBER: SBX1 23 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 2, 2011
INTRODUCED BY Committee on Budget and Fiscal Review
MAY 18, 2011
An act relating to the Budget Act of 2010.
An act to amend Sections 17041.5, 30111, and 32010 of, to add
Section 17041.6 to, and to add Chapter 3.53 (commencing with Section
7289), Chapter 3.54 (commencing with Section 7289.10), Chapter 3.55
(commencing with Section 7289.20), Chapter 3.56 (commencing with
Section 7289.31), Chapter 3.57 (commencing with Section 7289.40), and
Chapter 3.58 (commencing with Section 7289.50), to Part 1.7 of
Division 2 of, the Revenue and Taxation Code, relating to local
taxation, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 23, as amended, Committee on Budget and Fiscal Review.
Budget Act of 2010. Local taxation: counties: school
districts: community college districts: county offices of education:
general authorization.
The California Constitution prohibits the Legislature from
imposing taxes for local purposes, but allows the Legislature to
authorize local governments to impose them.
This bill would authorize the governing board of any county or
city and county, any school district, any community college district,
and any county office of education, subject to specified
constitutional and voter approval requirements, to levy, increase, or
extend a local personal income tax, transactions and use tax,
vehicle license fee, and excise tax, including, but not limited to,
an alcoholic beverages tax, a cigarette and tobacco products tax, a
sweetened beverage tax, and an oil severance tax, as provided.
This bill would require the State Board of Equalization, the
Franchise Tax Board, or the Department of Motor Vehicles to perform
various functions incident to the administration and operation of a
local tax if the county or city and county, the school district, the
community college district, or the county office of education
contracts with the state agency to perform those functions.
This bill would, for each fiscal year, also require a county or
city and county, a school district, a community college district, and
a county office of education to reimburse the state for any losses
incurred by the state General Fund due to any deductions allowed
under the Personal Income Tax Law and the Corporation Tax Law for any
local taxes levied, increased, or extended pursuant to this
authorization by that county or city and county, school district,
community college district, or county office of education, as
specified. This bill would, for each fiscal year, require the
Franchise Tax Board, with the assistance of the State Board of
Equalization, to estimate the losses incurred by the state General
Fund attributable to each county or city and county, a school
district, a community college district, or a county office of
education due to any local taxes levied, increased, or extended by
that county or city and county, school district, community college
district, or county office of education.
The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. Governor Schwarzenegger issued a proclamation
declaring a fiscal emergency, and calling a special session for this
purpose, on December 6, 2010. Governor Brown issued a proclamation on
January 20, 2011, declaring and reaffirming that a fiscal emergency
exists and stating that his proclamation supersedes the earlier
proclamation for purposes of that constitutional provision.
This bill would state that it addresses the fiscal emergency
declared and reaffirmed by the Governor by proclamation issued on
January 20, 2011, pursuant to the California Constitution.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2010.
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
December 6, 2010.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on December 6, 2010,
pursuant to the California Constitution.
Vote: majority. Appropriation: no yes
. Fiscal committee: no yes .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) The recent economic recession and slow recovery has led to an
erosion of tax revenues and sharp reductions in public services at
all levels of government in California.
(b) Counties are geographical and political subdivisions of the
state and administer state and federal laws governing public safety,
public health, child welfare services, and other programs. County
governments have experienced declines in general purpose revenues and
need additional funding stability to adequately protect the public
health and safety.
(c) Our schools and community colleges have lost billions of
dollars in state funding in recent years. Budget reductions have
resulted in larger class sizes and the elimination of extracurricular
activities in many schools and community colleges throughout
California.
(d) California is lagging in per pupil expenditures and simply is
not making the investment in public education needed to ensure that
our children are prepared to compete globally in the 21st century
economy.
(e) Public education and public safety are of vital concern to all
Californians.
(f) Businesses throughout California would benefit if counties
were able to stabilize funding for vital public services and schools
and community colleges were able to have access to the resources they
need to prepare the workforce of tomorrow.
(g) The Legislature controls the delegation of taxing authority to
counties, school districts, community college districts, and county
offices of education. These entities have limited taxing authority
under current law.
(h) Local taxing authority is subject to the provisions of Article
XIII C of the California Constitution, which requires local tax
measures that impose, extend, or increase taxes for special purposes
to be approved by a two-thirds vote of the electorate; and requires
local tax measures that impose, extend, or increase taxes for general
purposes to be approved by a majority vote of the electorate.
(i) Section 1 of Article II of the California Constitution
provides that "a]ll political power is inherent in the people."
(j) Voters want the option of deciding whether taxes should be a
part of the solution to budget shortfalls in their communities. The
voters should have a voice in determining the services they want and
are willing to pay for.
(k) That it is the intent of the Legislature to do both of the
following:
(1) To fund the administrative costs incurred by any state agency
resulting from the exercise of local taxing authority pursuant to
this act with a separate appropriation in a budget act or with a
deficiency appropriation.
(2) That local entities authorizing local tax measures under the
authorization provided by this act ultimately reimburse state
agencies for their administrative costs.
SEC. 2. Chapter 3.53 (commencing with Section
7289) is added to Part 1.7 of Division 2 of the Revenue
and Taxation Code , to read:
CHAPTER 3.53. GENERAL LOCAL TAX AUTHORIZATION
7289. Notwithstanding any other law, but subject to the
limitations of the California Constitution, the governing board of
any county or city and county, any school district, any community
college district, and any county office of education may, in
accordance with Article 3.7 (commencing with Section 53720) of
Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code,
levy, increase, or extend any of the following taxes:
(a) A local personal income tax that is assessed and collected by
the Franchise Tax Board in accordance with Section 17041.6.
(b) A transactions and use tax, adopted in accordance with the
Transactions and Use Tax Law (Part 1.6 (commencing with Section
7251)), notwithstanding any rate limitations specified in that law.
(c) A local vehicle license fee that is assessed and collected in
accordance with Chapter 3.54 (commencing with Section 7289.10).
(d) (1) An excise tax, including, but not limited to, a local
alcoholic beverage tax, a local cigarette and tobacco products tax, a
local sweetened beverage tax, and a local medical marijuana tax.
(A) A local alcoholic beverage tax shall be assessed and collected
in accordance with Chapter 3.55 (commencing with Section 7289.20).
(B) A local cigarette and tobacco products tax shall be assessed
and collected in accordance with Chapter 3.56 (commencing with
Section 7289.31).
(C) A local sweetened beverage tax shall be assessed and collected
in accordance with Chapter 3.58 (commencing with Section 7289.50).
(2) Notwithstanding paragraph (1), an excise tax shall not include
a motor vehicle fuel tax, diesel fuel tax, or use fuel tax.
(3) A county or city and county, a school district, a community
college district, or a county office of education may contract with
the State Board of Equalization to administer an excise tax. The
contract shall contain a provision that the county or city and
county, a school district, a community college district, or a county
office of education shall reimburse the board for all refunds,
losses, and costs incurred in the administration of the tax.
(e) A local tax on extractive business activities, as defined in
paragraph (3) of subdivision (d) of Section 25128, not to exceed 2
percent of the wholesale value per unit measure.
(f) A local oil severance tax that is assessed and collected in
accordance with Chapter 3.57 (commencing with Section 7289.40).
7289.1. (a) For each fiscal year, a county or city and county, a
school district, a community college district, and a county office of
education shall reimburse the state for any losses incurred by the
state General Fund due to any deductions allowed for that fiscal year
under the Personal Income Tax Law (Part 10 (commencing with Section
17001)) and the Corporation Tax Law (Part 11 (commencing with Section
23001)) for any local taxes levied, increased, or extended pursuant
to this chapter by that county or city and county, school district,
community college district, or county office of education, in
accordance with the estimate prescribed by subdivision (b).
(b) For each fiscal year, the Franchise Tax Board, with assistance
from the State Board of Equalization, shall estimate the losses
incurred by the state General Fund attributable to each county or
city and county, a school district, a community college district, or
a county office of education due to any local taxes levied,
increased, or extended pursuant to this chapter by that county or
city and county, school district, community college district, or
county office of education.
SEC. 3. Chapter 3.54 (commencing with Section
7289.10) is added to Part 1.7 of Division 2 of the Revenue
and Taxation Code , to read:
CHAPTER 3.54. LOCAL VEHICLE LICENSE FEE
7289.10. (a) Subject to the requirements of this chapter, the
governing board of a county or city and county, a school district, a
community college district, and a county office of education may
impose a vehicle license fee for the privilege of operating a vehicle
upon the public highways to the state in the county or city and
county, the school district, the community college district, or the
jurisdiction of the county office of education, as authorized
pursuant to Chapter 3.53 (commencing with Section 7289). The board of
supervisors may impose this fee within an incorporated city within
the county or city and county. An ordinance or resolution imposing a
local vehicle license fee, as authorized pursuant to Chapter 3.53
(commencing with Section 7289), shall not exceed 1.35 percent.
(b) (1) The Department of Motor Vehicles shall administer the
local vehicle license fee.
(2) Prior to the operative date of any ordinance or any resolution
imposing a local vehicle license fee, the county or city and county,
a school district, a community college district, or a county office
of education shall contract with the Department of Motor Vehicles to
perform all functions incident to the administration of the local
vehicle license fee.
(3) The contract shall require the county or city and county, a
school district, a community college district, or a county office of
education to reimburse the Department of Motor Vehicles for all
refunds, losses, and costs incurred in the administration and
operation of the local vehicle license fee.
(4) The local vehicle license fee shall be assessed and collected
in the same manner as the fee imposed by Part 5 (commencing with
Section 10701).
(5) (A) Amounts collected pursuant to this chapter shall be
transmitted to the Treasurer and deposited in the State Treasury to
the credit of the Local Vehicle License Fee Account in the General
Fund, which is hereby created.
(B) Notwithstanding Section 13340 of the Government Code, the
moneys in the Local Vehicle License Fee Account are hereby
continuously appropriated, without regard to fiscal year, to the
Controller for allocation to each county and city and county, school
district, community college district, and jurisdiction of each county
office of education in which the local vehicle license fee is
imposed.
(c) The Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code) shall not apply to any standard, criterion, procedure,
determination, rule, notice, or guideline established or issued by
the Department of Motor Vehicles in the administration of this
chapter.
SEC. 4. Chapter 3.55 (commencing with Section
7289.20) is added to Part 1.7 of Division 2 of the Revenue
and Taxation Code , to read:
CHAPTER 3.55. LOCAL ALCOHOLIC BEVERAGE TAX
7289.20. (a) Subject to the requirements of this chapter, the
governing board of a county or city and county, a school district, a
community college district, and a county office of education may
impose a tax on the privilege of selling beer, wine, or distilled
spirits at retail in the county or city and county, the school
district, the community college district, or the jurisdiction of the
county office of education, as authorized pursuant to Chapter 3.53
(commencing with Section 7289). The board of supervisors may impose
this tax within an incorporated city within the county or city and
county.
(b) Any tax imposed shall not exceed the following:
(1) On beer, five cents ($0.05) per 12 ounces and at a
proportionate rate for any other quantity.
(2) On wine, five cents ($0.05) per 5 ounces and at a
proportionate rate for any other quantity.
(3) On distilled spirits, five cents ($0.05) per 1.5 ounces and at
a proportionate rate for any other quantity.
(c) Any tax imposed shall not be regulatory within the meaning of
Section 22 of Article XX.
7289.21. For purposes of this chapter, "beer," "wine," and
"distilled spirits" have the same meanings as provided in Sections
23006, 23007, and 23005 of the Business and Professions Code.
7289.22. (a) The imposition of a tax pursuant to this chapter
shall not prohibit the concurrent application of a tax imposed
pursuant to the Sales and Use Tax Law (Part 1 (commencing with
Section 6001)), the Bradley-Burns Uniform Sales and Use Tax Law (Part
1.5 (commencing with Section 7200)), or a tax imposed in accordance
with the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251)), on the sale of or the, storage, use, or other
consumption of, beer, wine or distilled spirits.
(b) Notwithstanding Section 7203.5 or any other law, the
imposition of a tax pursuant to this chapter by a county or city and
county, a school district, a community college district, or a county
office of education shall not prohibit the concurrent administration
by the State Board of Equalization of a sales or use tax ordinance
adopted by that county or city and county pursuant to the
Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5
(commencing with Section 7200)) or in accordance with the
Transactions and Use Tax Law (Part 1.6 (commencing with Section
7251)).
7289.23. Any ordinance or resolution levying a tax pursuant to
this chapter shall provide that the tax shall conform to Part 1.6
(commencing with Section 7251). However, a tax imposed pursuant to
this chapter is not a sales or use tax or a transactions or use tax,
and shall not be considered as such for purposes of Section 7251.1.
7289.24. An ordinance or resolution adopted pursuant to this
chapter shall be operative on the first day of a calendar quarter
commencing more than 90 days after the adoption of the ordinance or
resolution.
7289.26. Prior to the operative date of any ordinance or
resolution imposing a tax pursuant to this chapter, the governing
board of the county or city and county, the school district, the
community college district, or the county office of education shall
do either of the following:
(a) Notify the State Board of Equalization in writing that the
county or city and county, the school district, the community college
district, or the county office of education will be responsible for
administering the tax imposed pursuant to an ordinance or resolution
authorized by this chapter on its own behalf, and that the ordinance
or resolution does not impose any duties or responsibilities for
administering the tax upon the board.
(b) Contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance or resolution. If the county or city and county, the school
district, the community college district, or the county office of
education has not contracted with the board prior to the operative
date of the ordinance or resolution, the operative date shall be
delayed until the first day of the first calendar quarter following
the execution of the contract.
7289.27. For a county or city and county, a school district, a
community college district, or a county office of education that
elects to contract with the State Board of Equalization to administer
a tax imposed by the county or city and county, the school district,
the community college district, or the county office of education,
as authorized by this chapter, the following shall apply:
(a) The contract shall require the county or city and county, the
school district, the community college district, or the county office
of education to do both of the following:
(1) Reimburse the State Board of Equalization for, and hold the
board harmless from, any and all costs, losses, or refunds.
(2) In the event that a legal action is commenced challenging the
validity of the tax in its entirety, as opposed to the application of
the tax to an individual taxpayer, place the tax proceeds into an
interest-bearing escrow account until the legality of the tax is
resolved by a final and nonappealable decision rendered by a court of
competent jurisdiction. This paragraph shall be enforceable by any
interested party in a proceeding for a writ of mandate.
(b) The county or city and county, the school district, the
community college district, or the county office of education shall
reimburse the State Board of Equalization for any costs the board
incurs in preparing to administer and operate the tax. The county or
city and county, the school district, the community college district,
or the county office of education shall reimburse the board as the
costs are incurred and billed by the board, on a monthly basis. These
reimbursable costs shall include costs incurred for the following:
(1) Developing procedures.
(2) Programming for data processing.
(3) Developing and adopting appropriate regulations.
(4) Designing and printing forms.
(5) Developing instructions for the State Board of Equalization
staff and for taxpayers.
(6) Any other necessary preparatory costs, including the State
Board of Equalization's direct and indirect costs as specified by
Section 11256 of the Government Code.
(c) Any dispute as to the amount of preparatory costs incurred by
the State Board of Equalization shall be resolved by the Director of
Finance, whose decision shall be final. The maximum amount of all
preparatory costs to be paid by the county or city and county, the
school district, the community college district, or the county office
of education to the board shall not exceed one hundred seventy-five
thousand dollars ($175,000).
(d) In addition to the amounts paid to the State Board of
Equalization for the preparatory costs described in subdivision (b),
the county or city and county, the school district, the community
college district, or the county office of education shall reimburse
the board for the cost of the board's services in administering the
tax. The amount of this cost shall be determined by the board with
the concurrence of the Department of Finance.
(e) All revenues collected from taxes imposed pursuant to the
authorization of this chapter in counties or a city and county,
school districts, community college districts, or county offices of
education that have contracted with the State Board of Equalization
to administer the tax shall be remitted to the board and allocated by
the board as follows:
(1) First, for reimbursement to the State Board of Equalization
for the reasonable costs, as specified in subdivisions (b) and (d),
of administering and enforcing the tax ordinance on behalf of the
county or city and county, the school district, the community college
district, or the county office of education pursuant to the contract
between the board and the county or city and county, the school
district, the community college district, or the county office of
education.
(2) Second, for transmission to each county or city and county,
school district, community college district, or county office of
education that has contracted with the State Board of Equalization
pursuant to subdivision (b) of Section 7289.26, in proportion to the
amount of revenues derived from each county's or city and county's,
school district's, community college district's, or county office of
education's respective tax.
(f) The State Board of Equalization shall transmit to a county or
city and county, a school district, a community college district, or
a county office of education all revenues derived from the taxes
imposed pursuant to this chapter and collected by the board pursuant
to a contract with the county or city and county, the school
district, the community college district, or the county office of
education periodically as promptly as feasible. The transmittals
shall be made at least twice in each calendar quarter.
7289.28. Except as provided in Section 7289.29, to the extent
practicable, Chapter 5 (commencing with Section 6451), Chapter 6
(commencing with Section 6701), Chapter 7 (commencing with Section
6901), and Chapter 8 (commencing with Section 7051) of Part 1, shall
govern determinations, collection of tax, overpayments, and refunds,
and administration of all taxes imposed under the authorization of
this chapter.
7289.29. The return and payment of any tax imposed pursuant to
the authorization of this chapter shall be due and payable to the
State Board of Equalization on the same date as the return and
payment of the tax imposed pursuant to Part 1 (commencing with
Section 6001), provided that the retailer is within the jurisdiction
of a county or city and county, a school district, a community
college district, or a county office of education that elects to
contract with the board to administer the tax, pursuant to
subdivision (b) of Section 7289.26. If the retailer is within the
jurisdiction of a county or city and county, a school district, a
community college district, or a county office of education that has
elected not to contract with the board to administer the tax, the
return and payment of the tax imposed pursuant to the authorization
of this chapter is due and payable from the retailer as prescribed in
the ordinance or resolution adopted by the county or city and
county, the school district, the community college district, or the
county office of education.
7289.30. The Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code) shall not apply to any standard, criterion,
procedure, determination, rule, notice, or guideline established or
issued by the State Board of Equalization in the administration of
this chapter.
SEC. 5. Chapter 3.56 (commencing with Section
7289.31) is added to Part 1.7 of Division 2 of the Revenue
and Taxation Code , to read:
CHAPTER 3.56. LOCAL CIGARETTE AND TOBACCO PRODUCT TAX
7289.31. (a) Subject to the requirements of this chapter, the
governing board of a county or city and county, a school district, a
community college district, and a county office of education may
impose a tax on the privilege of distributing cigarettes and tobacco
products in the county or city and county, the school district, the
community college district, or the jurisdiction of the county office
of education, as authorized pursuant to Chapter 3.53 (commencing with
Section 7289). The board of supervisors may impose this tax within
an incorporated city within the county or city and county.
(b) Any tax imposed shall not exceed the following:
(1) On cigarettes, five cents ($0.05) per cigarette.
(2) On tobacco products, based on the wholesale cost of these
products, at a tax rate, as determined annually by the State Board of
Equalization, which is equivalent to five cents ($0.05) per
cigarette.
(3) Any tax imposed shall be assessed and collected in the same
manner as the taxes imposed by the Cigarette and Tobacco Products Tax
Law (Part 13 (commencing with Section 30001)).
7289.32. An ordinance or resolution adopted pursuant to this
chapter shall be operative on the first day of a calendar quarter
commencing more than 110 days after the adoption of the ordinance or
resolution.
7289.33. Prior to the operative date of any ordinance or
resolution imposing a tax pursuant to this chapter, the governing
board of the county or city and county, the school district, the
community college district, or the county office of education shall
do either of the following:
(a) Notify the State Board of Equalization in writing that the
county or city and county, the school district, the community college
district, or the county office of education will be responsible for
administering the tax imposed pursuant to an ordinance or resolution
authorized by this chapter on its own behalf, and that the ordinance
or resolution does not impose any duties or responsibilities for
administering the tax upon the board.
(b) Contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance or resolution. If the county or city and county, the school
district, the community college district, or the county office of
education has not contracted with the board prior to the operative
date of the ordinance or resolution, the operative date shall be
delayed until the first
day of the first calendar quarter following the execution of the
contract.
7289.34. For a county or city and county, a school district, a
community college district, or a county office of education that
elects to contract with the State Board of Equalization to administer
a tax imposed by the county or city and county, the school district,
the community college district, or the county office of education,
as authorized by this chapter, the following shall apply:
(a) The contract shall require the county or city and county, the
school district, the community college district, or the county office
of education to do both of the following:
(1) Reimburse the State Board of Equalization for, and hold the
board harmless from, any and all costs, losses, or refunds.
(2) In the event that a legal action is commenced challenging the
validity of the tax in its entirety, as opposed to the application of
the tax to an individual taxpayer, place the tax proceeds into an
interest-bearing escrow account until the legality of the tax is
resolved by a final and nonappealable decision rendered by a court of
competent jurisdiction. This paragraph shall be enforceable by any
interested party in a proceeding for a writ of mandate.
(b) The county or city and county, the school district, the
community college district, or the county office of education shall
reimburse the State Board of Equalization for any costs the board
incurs in preparing to administer and operate the tax. The county or
city and county, the school district, the community college district,
or the county office of education shall reimburse the board as the
costs are incurred and billed by the board, on a monthly basis. These
reimbursable costs shall include costs incurred for the following:
(1) Developing procedures.
(2) Programming for data processing.
(3) Developing and adopting appropriate regulations.
(4) Designing and printing forms.
(5) Developing instructions for the State Board of Equalization
staff and for taxpayers.
(6) Any other necessary preparatory costs, including the State
Board of Equalization's direct and indirect costs as specified by
Section 11256 of the Government Code.
(c) Any dispute as to the amount of preparatory costs incurred by
the State Board of Equalization shall be resolved by the Director of
Finance, whose decision shall be final. The maximum amount of all
preparatory costs to be paid by the county or a city and county, the
school district, the community college district, or the county office
of education to the board shall not exceed one hundred seventy-five
thousand dollars ($175,000).
(d) In addition to the amounts paid to the State Board of
Equalization for the preparatory costs described in subdivision (b),
the county or a city and county, the school district, the community
college district, or the county office of education shall reimburse
the board for the cost of the board's services in administering the
tax. The amount of this cost shall be determined by the board with
the concurrence of the Department of Finance.
(e) All revenues collected from taxes imposed pursuant to the
authorization of this chapter in counties or a city and county,
school districts, community college districts, or county offices of
education that have contracted with the State Board of Equalization
to administer the tax shall be remitted to the board and allocated by
the board as follows:
(1) First, for reimbursement to the State Board of Equalization
for the reasonable costs, as specified in subdivisions (b) and (d),
of administering and enforcing the tax ordinance on behalf of the
county or city and county, the school district, the community college
district, or the county office of education pursuant to the contract
between the board and the county or city and county, the school
district, the community college district, or the county office of
education.
(2) Second, for transmission to each county or city and county,
school district, community college district, or county office of
education that has contracted with the State Board of Equalization
pursuant to subdivision (b) of Section 7289.33, in proportion to the
amount of revenues derived from each county's or city and county's,
school district's, community college district's, or county office of
education's respective tax.
(f) The State Board of Equalization shall transmit to a county or
city and county, a school district, a community college district, or
a county office of education all revenues derived from the taxes
imposed pursuant to this chapter and collected by the board pursuant
to a contract with the county or city and county, the school
district, the community college district, or the county office of
education periodically as promptly as feasible. The transmittals
shall be made at least twice in each calendar quarter.
7289.35. Except as provided in Section 7289.36, to the extent
practicable, Chapter 4 (commencing with Section 30181), Chapter 5
(commencing with Section 30301), Chapter 6 (commencing with Section
30361), and Chapter 8 (commencing with Section 30451) of Part 13,
shall govern determinations, collection of tax, overpayments, and
refunds, and administration of all taxes imposed under the
authorization of this chapter.
7289.36. The return and payment of any tax imposed pursuant to
the authorization of this chapter is due and payable to the State
Board of Equalization on the same date as the return and payment of
the tax imposed pursuant to Part 13 (commencing with Section 30001),
provided that the retailer is within the jurisdiction of a county or
city and county, a school district, a community college district, or
a county office of education that elects to contract with the board
to administer the tax, pursuant to subdivision (b) of Section
7289.33. If the retailer is within the jurisdiction of a county or
city and county, a school district, a community college district, or
a county office of education that has elected not to contract with
the board to administer the tax, the return and payment of the tax
imposed pursuant to the authorization of this chapter is due and
payable from the retailer as prescribed in the ordinance or
resolution adopted by the county or city and county, the school
district, the community college district, or the county office of
education.
7289.37. The Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code) shall not apply to any standard, criterion,
procedure, determination, rule, notice, or guideline established or
issued by the State Board of Equalization in the administration of
this chapter.
SEC. 6. Chapter 3.57 (commencing with Section
7289.40) is added to Part 1.7 of Division 2 of the Revenue
and Taxation Code , to read:
CHAPTER 3.57. LOCAL OIL SEVERANCE TAX
7289.40. (a) Subject to the requirements of this chapter, the
governing board of a county or city and county, a school district, a
community college district, and a county office of education may
impose a tax upon a producer for the privilege of severing oil from
the earth or water in the county or city and county, the school
district, the community college district, or the jurisdiction of the
county office of education for sale, transport, consumption, storage,
profit, or use, as authorized pursuant to Chapter 3.53 (commencing
with Section 7289). The board of supervisors may impose this tax
within an incorporated city within the county or city and county.
(b) Any tax imposed shall not exceed 10 percent of the gross value
of the product.
(c) Except as otherwise provided in this chapter, the tax shall be
upon the entire production in the county or city and county, the
school district, the community college district, or the jurisdiction
of the county office of education, regardless of the place of sale or
to whom sold or by whom used, or the fact that the delivery may be
made to points outside the county or city and county, school
district, community college district, or the jurisdiction of the
county office of education.
(d) The tax shall be in addition to any ad valorem taxes imposed
by the state, or any of its political subdivisions, or any local
business license taxes that may be incurred for the privilege of
severing oil from the earth or water or doing business in that
locality. An exemption shall not be allowed from the payment of an ad
valorem tax related to equipment, material, or property by reason of
the payment of the gross severance tax.
(e) Two or more producers that are corporations and are owned or
controlled directly or indirectly, as defined in Section 25105, by
the same interests shall be considered as a single producer for
purposes of application of the tax.
(f) There shall be exempted from the imposition of the tax imposed
pursuant to this part oil produced by a stripper well in which the
average value of oil as of January 1 of the prior year is less than
thirty dollars ($30) per barrel price of California oil. The Division
of Oil, Gas, and Geothermal Resources in the Department of
Conservation shall provide notification of all wells that have been
certified as a stripper well.
(g) For oil produced in this state from a well that qualifies
under Section 3251 of the Public Resources Code or which has been
inactive for a period of at least the preceding five consecutive
years, the imposition of the tax imposed pursuant to this part shall
be reduced to zero for a period of 10 years. The Division of Oil,
Gas, and Geothermal Resources in the Department of Conservation shall
determine which wells qualify under Section 3251 of the Public
Resources Code or which have been inactive for a period of at least
the preceding five consecutive years, and shall provide notification
of its determinations.
(h) There shall be exempted from the imposition of a tax imposed
all oil owned or produced by the state and any political subdivision'
s (including any local public entity, as defined by Section 900.4 of
the Government Code) proprietary share of oil produced under any
unit, cooperative, or other pooling agreement.
7289.41. For purposes of any tax imposed, all of the following
definitions shall apply:
(a) "Barrel of oil" means 42 United States gallons of 231 cubic
inches per gallon computed at a temperature of 60 degrees Fahrenheit.
(b) "Gross value" means the sale price at the mouth of the well,
including any bonus, premium, or other thing of value paid for the
oil. If there is no sale at the time of severance, "gross value"
means the sale price when the oil is sold, including any bonus,
premium, or other thing of value paid for the oil. If oil is
exchanged for something other than cash, or if the relation between
the buyer and the seller is such that the consideration paid, if any,
is not indicative of the true value or market price, then the board
shall determine the value of the oil subject to the tax based on the
cash price paid to producers for like quality oil in the vicinity of
the well.
(c) "Oil" means petroleum, or other crude oil, condensate, casing
head gasoline, or other mineral oil that is mined, produced, or
withdrawn from below the surface of the soil or water in the county
or city and county, the school district, the community college
district, or the jurisdiction of the county office of education.
(d) "Producer" means any person or entity that takes oil from the
earth or water in the county or city and county, the school district,
the community college district, or the jurisdiction of the county
office of education in any manner; any person that owns, controls,
manages, or leases any oil well in the earth or water of the county
or city and county, the school district, the community college
district, or the jurisdiction of the county office of education; any
person that produces or extracts in any manner any oil by taking it
from the earth or water in the county or city and county, the school
district, the community college district, or the jurisdiction of the
county office of education; any person that acquires the severed oil
from a person or agency exempt from property taxation under the
United States Constitution or other laws of the United States or
under the California Constitution or other laws of the State of
California; and any person that owns an interest, including a royalty
interest, in oil or its value, whether the oil is produced by the
person owning the interest or by another on the person's behalf by
lease, contract, or other arrangement.
(e) "Production" means the total gross amount of oil produced,
including the gross amount attributable to a royalty or other
interest.
(f) "Severed" or "severing" means the extraction or withdrawing
from below the surface of the earth or water of any oil, regardless
of whether the extraction or withdrawal shall be by natural flow,
mechanical flow, forced flow, pumping, or any other means employed to
get the oil from below the surface of the earth or water, and shall
include the extraction or withdrawal by any means whatsoever of oil
upon which the tax has not been paid, from any surface reservoir,
natural or artificial, or from a water surface.
(g) "Stripper well" means a well that has been certified by the
Division of Oil, Gas, and Geothermal Resources in the Department of
Conservation as an oil well incapable of producing an average of more
than 10 barrels of oil per day during the entire taxable month. Once
a well has been certified as a stripper well, that stripper well
shall remain certified as a stripper well until the well produces an
average of more than 10 barrels of oil per day during an entire
taxable month.
7289.42. Prior to the operative date of any ordinance or
resolution imposing a tax pursuant to this chapter, the governing
board of the county or city and county, the school district, the
community college district, or the county office of education shall
do either of the following:
(a) Notify the State Board of Equalization in writing that the
county or city and county, the school district, the community college
district, or the county office of education will be responsible for
administering the tax imposed pursuant to an ordinance or a
resolution authorized by this chapter on its own behalf, and that the
ordinance or resolution does not impose any duties or
responsibilities for administering the tax upon the board.
(b) Contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance or resolution. If the county or city and county, the school
district, the community college district, or the county office of
education has not contracted with the board prior to the operative
date of the ordinance or resolution, but shall contract, the
operative date shall be delayed until the first day of the first
calendar quarter following the execution of the contract.
7289.43. For a county or city and county, a school district, a
community college district, or a county office of education that
elects to contract with the State Board of Equalization to administer
a tax imposed by the county or city and county, the school district,
the community college district, or the county office of education,
as authorized by this chapter, the following shall apply:
(a) The contract shall require the county or city and county, the
school district, the community college district, or the county office
of education to do both of the following:
(1) Reimburse the State Board of Equalization for, and hold the
board harmless from, any and all costs, losses, or refunds.
(2) In the event that a legal action is commenced challenging the
validity of the tax in its entirety, as opposed to the application of
the tax to an individual taxpayer, place the tax proceeds into an
interest-bearing escrow account until the legality of the tax is
resolved by a final and nonappealable decision rendered by a court of
competent jurisdiction. This paragraph shall be enforceable by any
interested party in a proceeding for a writ of mandate.
(b) The county or city and county, the school district, the
community college district, or the county office of education shall
reimburse the State Board of Equalization for any costs the board
incurs in preparing to administer and operate the tax. The county or
city and county, the school district, the community college district,
or the county office of education shall reimburse the board as the
costs are incurred and billed by the board, on a monthly basis. These
reimbursable costs shall include costs incurred for the following:
(1) Developing procedures.
(2) Programming for data processing.
(3) Developing and adopting appropriate regulations.
(4) Designing and printing forms.
(5) Developing instructions for the State Board of Equalization
staff and for taxpayers.
(6) Any other necessary preparatory costs, including the State
Board of Equalization's direct and indirect costs as specified by
Section 11256 of the Government Code.
(c) Any dispute as to the amount of preparatory costs incurred by
the State Board of Equalization shall be resolved by the Director of
Finance, whose decision shall be final. The maximum amount of all
preparatory costs to be paid by the county or city and county, the
school district, the community college district, or the county office
of education to the board shall not exceed one hundred seventy-five
thousand dollars ($175,000).
(d) In addition to the amounts paid to the State Board of
Equalization for the preparatory costs described in subdivision (b),
the county or city and county, the school district, the community
college district, or the county office of education shall reimburse
the board for the cost of the board's services in administering the
tax. The amount of this cost shall be determined by the board with
the concurrence of the Department of Finance.
(e) All revenues collected from taxes imposed pursuant to the
authorization of this chapter in counties or a city and county,
school districts, community college districts, or county offices of
education that have contracted with the State Board of Equalization
to administer the tax shall be remitted to the board and allocated by
the board as follows:
(1) First, for reimbursement to the State Board of Equalization
for the reasonable costs, as specified in subdivisions (b) and (d),
of administering and enforcing the tax ordinance on behalf of the
county or city and county, the school district, the community college
district, or the county office of education pursuant to the contract
between the board and the county or city and county, the school
district, the community college district, or the county office of
education.
(2) Second, for transmission to each county or city and county,
school district, community college district, or county office of
education that has contracted with the State Board of Equalization
pursuant to subdivision (b) of Section 7289.42, in proportion to the
amount of revenues derived from each county's or city and county's,
school district's, community college district's, or county office of
education's respective tax.
(f) The State Board of Equalization shall transmit to a county or
city and county, a school district, a community college district, or
a county office of education all revenues derived from the taxes
imposed pursuant to this chapter and collected by the board pursuant
to a contract with the county or city and county, the school
district, the community college district, or the county office of
education periodically as promptly as feasible. The transmittals
shall be made at least twice in each calendar quarter.
7289.44. (a) For a producer within a jurisdiction of a county or
city and county, a school district, a community college district, or
a county office of education that elects to contract with the State
Board of Equalization to administer the tax pursuant to subdivision
(b) of Section 7289.42, the following apply:
(1) (A) The return and payment of any tax imposed pursuant to the
authorization of this chapter is due and payable to the board
quarterly on or before the last day of the month next succeeding each
calendar quarter.
(B) Each producer shall prepare and file with the State Board of
Equalization a return in the form prescribed by the board containing
information as the board deems necessary or appropriate for the
proper administration of the tax. The return shall be filed on or
before the last day of the calendar month following the calendar
quarter to which it relates, together with a remittance payable to
the board for the amount of tax due for that period.
(2) The State Board of Equalization may prescribe those forms and
reporting requirements as necessary to implement the tax, including,
but not limited to, information regarding the location of the well,
by the county or city and county, the school district, the community
college district, or jurisdiction of the county office of education,
the gross amount of oil produced, the quantity sold and the selling
price, the prevailing market price of oil, and the amount of tax due.
(3) The State Board of Equalization shall administer and collect
the tax, to the extent practicable, pursuant to the Fee Collection
Procedures Law (Part 30 (commencing with Section 55001) of Division
2). For purposes of this part, the references in the Fee Collection
Procedures Law to "fee" shall include the tax imposed by this part,
and to "feepayer" shall include a producer required to pay the tax
imposed by this part.
(4) The State Board of Equalization may prescribe, adopt, and
enforce regulations relating to the administration and enforcement of
this chapter.
(b) If the producer is within the jurisdiction of a county or city
and county, a school district, a community college district, or a
county office of education that has elected not to contract with the
State Board of Equalization to administer the tax, the
determinations, collection of tax, overpayments, and refunds, and
administration of the tax imposed under the authorization of this
chapter shall be prescribed in the ordinance or resolution adopted by
the county or city and county, the school district, the community
college district, or the county office of education.
7289.45. The Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code) shall not apply to any standard, criterion,
procedure, determination, rule, notice, or guideline established or
issued by the State Board of Equalization in the administration of
this chapter.
SEC. 7. Chapter 3.58 (commencing with Section
7289.50) is added to Part 1.7 of Division 2 of the Revenue
and Taxation Code , to read:
CHAPTER 3.58. LOCAL SWEETENED BEVERAGE TAX
7289.50. (a) Subject to the requirements of this chapter, the
governing board of a county or city and county, a school
district, a community college
district, and a county office of education may impose a tax upon a
distributor for the privilege of distributing bottled sweetened
beverages and concentrate in the county or city and county, the
school district, the community college district, or the jurisdiction
of the county office of education, as authorized pursuant to Chapter
3.53 (commencing with Section 7289). The board of supervisors may
impose this tax within an incorporated city within the county or city
and county.
(b) Any tax imposed shall be calculated as follows:
(1) The tax on bottled sweetened beverages distributed in the
county or city and county, the school district, the community college
district, or the jurisdiction of the county office of education,
shall be imposed per fluid ounce, not to exceed one cent ($0.01) per
fluid ounce.
(2) The tax on concentrate distributed in the county or city and
county, the school district, the community college district, or the
jurisdiction of the county office of education, either as concentrate
or as a sweetened beverage derived from that concentrate, shall be
imposed per fluid ounce of sweetened beverage produced from that
concentrate, not to exceed one cent ($0.01) per fluid ounce. For
purposes of calculating the tax for concentrate, the volume of
sweetened beverage to be produced from concentrate shall be the
largest volume resulting from use of the concentrate according to any
manufacturer's instructions.
(c) There shall be exempted from the imposition of a tax imposed
the distribution of bottled sweetened beverages or concentrate
distributed by a distributor to:
(1) To a person when, pursuant to the contract of sale, the
bottled sweetened beverages or concentrates are shipped to a point
outside of this state by the distributor by means of any of the
following:
(A) Facilities operated by the distributor.
(B) Delivery by the distributor to a carrier, customs broker, or
forwarding agent, whether hired by the purchaser or not, for shipment
to the out-of-county point.
(2) To a person where the county or city and county, the school
district, the community college district, or the county office of
education is prohibited from taxing that sale, use, or consumption
under the Constitution or laws of the United States or under the
Constitution of this state.
7289.51. For purposes of any tax imposed, all of the following
definitions shall apply:
(a) "Beverage container" means any closed or sealed container
regardless of size or shape, including, without limitation, those
made of glass, metal, paper, plastic, or any other material or
combination of materials.
(b) "Bottled sweetened beverage" means a sweetened beverage
contained in a beverage container.
(c) "Beverage dispensing machine" means a device which mixes
concentrate with any one or more other ingredients and dispenses the
resulting mixture into an open container as a ready-to-drink
beverage.
(d) "Caloric sweetener" means any caloric substance suitable for
human consumption that humans perceive as sweet and includes, without
limitation, sucrose, fructose, including high fructose corn
sweetener, glucose, other sugars, and fruit juice concentrates.
"Caloric" means a substance that adds calories to the diet of a
person who consumes that substance.
(e) "Concentrate" means a syrup, powder, or base product that is
used for mixing, compounding, or making sweetened beverages in a
beverage dispensing machine. For purposes of this part, "concentrate"
does not include any of the following:
(1) Any product that is solely used in preparing coffee or tea.
(2) Any product for consumption by infants and which is commonly
referred to as "infant formula."
(3) Any product for use for weight reduction.
(4) Any product containing milk or milk products or plant proteins
sources.
(5) Any frozen concentrate or freeze-dried concentrate to which
only water is added to produce a sweetened beverage containing more
than 10 percent natural fruit juice or more than 10 percent natural
fruit juice.
(6) Any product that is sold and is intended to be used for the
purpose of an individual consumer mixing a sweetened beverage.
(7) Medical food.
(8) Any product to which no caloric sweeteners have been added.
(f) "Consumer" means a person who purchases a bottled sweetened
beverage or concentrate for a purpose other than resale in the
ordinary course of business.
(g) "Distribution" includes:
(1) The sale of bottled sweetened beverages or concentrate to a
retailer.
(2) The receipt of untaxed bottled sweetened beverages or
concentrate in this state from an unregistered out-of-state
distributor by a retailer.
(h) "Distributor" means any person, or the distributor's agent,
who makes a distribution of bottled sweetened beverages, sweetened
beverages, or concentrate in the state, whether or not that person
also sells these products to consumers.
(i) "Medical food" means medical food as defined in Section 109971
of the Health and Safety Code.
(j) "Milk" means natural liquid milk, regardless of animal source
or butterfat content, natural milk concentrate, whether or not
reconstituted, regardless of animal source, plant source, or
butterfat content, or dehydrated natural milk, whether or not
reconstituted and regardless of animal source or butterfat content.
(k) "Natural fruit juice" means the original liquid resulting from
the pressing of fruit, the liquid resulting from the reconstitution
of natural fruit juice concentrate, or the liquid resulting from the
restoration of water to dehydrated natural fruit juice.
(l) "Natural vegetable juice" means the original liquid resulting
from the pressing of vegetables, the liquid resulting from the
reconstitution of natural vegetable juice concentrate, or the liquid
resulting from the restoration of water to dehydrated natural
vegetable juice.
(m) "Nonalcoholic beverage" means any beverage not subject to tax
under Part 14 (commencing with Section 32001).
(n) "Person" means an individual, trust, firm, joint stock
company, business concern, business trust, receiver, trustee,
syndicate, social club, fraternal organization, estate, corporation,
including, but not limited to, a government corporation, partnership,
limited liability company, and association or any other group or
combination acting as a unit. "Person" also includes any city,
county, city and county, district, commission, the state, or any
department, agency, or political subdivision thereof, any interstate
body, and the United States and its agencies and instrumentalities to
the extent permitted by law.
(o) "Powder" or "base product" means a solid mixture of
ingredients used in making, mixing, or compounding sweetened
beverages by mixing the powder or base product with any one or more
other ingredients, including, without limitation, water, ice, syrup,
simple syrup, fruits, vegetables, fruit juice, vegetable juice, or
carbonation or other gas.
(p) "Retail sale" means the sale of bottled sweetened beverages or
sweetened beverages to a consumer.
(q) "Retailer" means any person who sells in this state bottled
sweetened beverages or sweetened beverages to a consumer, whether or
not that person is also a distributor as defined in this section.
(r) "Sale" means the transfer of title or possession for
consideration in any manner or by any means whatever.
(s) "Simple syrup" means a mixture of sugar and water.
(t) (1) "Sweetened beverage" means any sweetened nonalcoholic
beverage sold for human consumption that contains any added caloric
sweeteners, including, but not limited to, the following: soda water,
ginger ale, root beer, all beverages commonly referred to as cola,
lime, lemon, lemon-lime, and other flavored beverages, including any
fruit or vegetable beverage containing 10 percent or less natural
fruit juice or natural vegetable juice, and all other drinks and
beverages commonly referred to as "soda," "soda pop," and "soft
drinks."
(2) "Sweetened beverage" does not include any of the following:
(A) Any product sold in liquid form for consumption by infants,
which is commonly referred to as "infant formula."
(B) Any product sold in liquid form for use for weight reduction.
(C) Water, to which no caloric sweeteners have been added.
(D) Any product containing milk or milk products or plant protein
sources.
(E) Medical food.
(F) Coffee or tea.
(u) "Syrup" means the liquid mixture of ingredients used in
making, mixing, or compounding sweetened beverages using one or more
other ingredients including, without limitation, water, ice, a
powder, simple syrup, fruits, vegetables, fruit juice, vegetable
juice, or carbonation or other gas.
7289.52. Prior to the operative date of any ordinance or
resolution imposing a tax pursuant to this chapter, the governing
board of the county or city and county, the school district, the
community college district, or the county office of education shall
do either of the following:
(a) Notify the State Board of Equalization in writing that the
county or city and county, the school district, the community college
district, or the county office of education will be responsible for
administering the tax imposed pursuant to an ordinance or a
resolution authorized by this chapter on its own behalf, and that the
ordinance or resolution does not impose any duties or
responsibilities for administering the tax upon the State Board of
Equalization.
(b) Contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance or resolution. If the county or city and county, the school
district, the community college district, or the county office of
education has not contracted with the board prior to the operative
date of the ordinance or resolution, but shall contract, the
operative date shall be delayed until the first day of the first
calendar quarter following the execution of the contract.
7289.53. For a county or city and county, a school district, a
community college district, or a county office of education that
elects to contract with the State Board of Equalization to administer
a tax imposed by the county or city and county, the school district,
the community college district, or the county office of education,
as authorized by this chapter, the following shall apply:
(a) The contract shall require the county or city and county, the
school district, the community college district, or the county office
of education to do both of the following:
(1) Reimburse the State Board of Equalization for, and hold the
board harmless from, any and all costs, losses, or refunds.
(2) In the event that a legal action is commenced challenging the
validity of the tax in its entirety, as opposed to the application of
the tax to an individual taxpayer, place the tax proceeds into an
interest-bearing escrow account until the legality of the tax is
resolved by a final and nonappealable decision rendered by a court of
competent jurisdiction. This paragraph shall be enforceable by any
interested party in a proceeding for a writ of mandate.
(b) The county or city and county, the school district, the
community college district, or the county office of education shall
reimburse the State Board of Equalization for any costs the board
incurs in preparing to administer and operate the tax. The county or
city and county, the school district, the community college district,
or the county office of education shall reimburse the board as the
costs are incurred and billed by the board, on a monthly basis. These
reimbursable costs shall include costs incurred for the following:
(1) Developing procedures.
(2) Programming for data processing.
(3) Developing and adopting appropriate regulations.
(4) Designing and printing forms.
(5) Developing instructions for the State Board of Equalization
staff and for taxpayers.
(6) Any other necessary preparatory costs, including the State
Board of Equalization's direct and indirect costs as specified by
Section 11256 of the Government Code.
(c) Any dispute as to the amount of preparatory costs incurred by
the State Board of Equalization shall be resolved by the Director of
Finance, whose decision shall be final. The maximum amount of all
preparatory costs to be paid by the county or city and county, the
school district, the community college district, or the county office
of education to the board shall not exceed one hundred seventy-five
thousand dollars ($175,000).
(d) In addition to the amounts paid to the State Board of
Equalization for the preparatory costs described in subdivision (b),
the county or city and county, the school district, the community
college district, or the county office of education shall reimburse
the board for the cost of the board's services in administering the
tax. The amount of this cost shall be determined by the board with
the concurrence of the Department of Finance.
(e) All revenues collected from taxes imposed pursuant to the
authorization of this chapter in counties or a city and county,
school districts, community college districts, or county offices of
education that have contracted with the State Board of Equalization
to administer the tax shall be remitted to the board and allocated by
the board as follows:
(1) First, for reimbursement to the State Board of Equalization
for the reasonable costs, as specified in subdivisions (b) and (d),
of administering and enforcing the tax ordinance on behalf of the
county or city and county, the school district, the community college
district, or the county office of education pursuant to the contract
between the board and the county or city and county, the school
district, the community college district, or the county office of
education.
(2) Second, for transmission to each county or city and county,
school district, community college district, or county office of
education that has contracted with the State Board of Equalization
pursuant to subdivision (b) of Section 7289.52, in proportion to the
amount of revenues derived from each county's or city and county's,
school district's, community college district's, or county office of
education's respective tax.
(f) The State Board of Equalization shall transmit to a county or
city and county, a school district, a community college district, or
a county office of education all revenues derived from the taxes
imposed pursuant to this chapter and collected by the board pursuant
to a contract with the county or city and county, the school
district, the community college district, or the county office of
education periodically as promptly as feasible. The transmittals
shall be made at least twice in each calendar quarter.
7289.54. (a) For a distributor that is subject to the
jurisdiction of a county or city and county, a school district, a
community college district, or a county office of education that
elects to contract with the State Board of Equalization to administer
the tax pursuant to subdivision (b) of Section 7289.52, the
following apply:
(1) Every distributor shall register with the State Board of
Equalization. Every application for registration shall be made upon a
form prescribed by the board and shall set forth the name under
which the applicant transacts or intends to transact business, the
location of his or her place or places of business, and any other
information as the board may require. An application for an account
shall be authenticated in a form or pursuant to methods as may be
prescribed by the board.
(2) (A) There is exempt from any tax the distribution of bottled
sweetened beverages or concentrate distributed by a distributor to a
distributor registered with the board under paragraph (1) when
supported by a properly completed exemption certificate.
(B) The exemption certificate to be provided by a distributor to
another distributor as described in subparagraph (A) shall consist of
a statement that is signed under penalty of perjury by a person with
authority to bind the distributor. The certificate shall be dated
and include the distributor's name and account number. A new
certificate shall be given if any information in the current
certificate changes. The certificate may be included as part of any
business records normally used to document a sale or distribution.
(C) A distributor who has paid a tax, either directly to the State
Board of Equalization or to another distributor registered pursuant
to paragraph (1), and makes a subsequent distribution of bottled
sweetened beverages or concentrate may claim a credit on its return
for the period in which the subsequent sale or distribution occurs.
(3) (A) The return and payment of any tax imposed pursuant to the
authorization of this chapter is due and payable to the State Board
of Equalization quarterly on or before the last day of the month next
succeeding each calendar quarter.
(B) Each distributor shall prepare and file with the State Board
of Equalization a return in the form prescribed by the board
containing information as the board deems necessary or appropriate
for the proper administration of the tax. The return shall be filed
on or before the last day of the calendar month following the
calendar quarter to which it relates, together with a remittance
payable to the board for the amount of tax due for that period.
(4) The State Board of Equalization may prescribe those forms and
reporting requirements as necessary to implement the tax, including,
but not limited to, information regarding the total amount of bottled
sweetened beverages and concentrate sold and the amount of tax due.
(5) The State Board of Equalization shall administer and collect
the tax, to the extent practicable, pursuant to the Fee Collection
Procedures Law (Part 30 (commencing with Section 55001) of Division
2). For purposes of this part, the references in the Fee Collection
Procedures Law to "fee" shall include the tax imposed by this part,
and to "feepayer" shall include a producer required to pay the tax
imposed by this part.
(6) The State Board of Equalization may prescribe, adopt, and
enforce regulations relating to the administration and enforcement of
this chapter.
(7) Returns shall be authenticated in a form or pursuant to
methods as may be prescribed by the board.
(b) If the distributor is within the jurisdiction of a county or
city and county, a school district, a community college district, or
a county office of education that has elected not to contract with
the State Board of Equalization to administer the tax, the
determinations, collection of tax, overpayments, refunds, and
administration of the tax imposed under the authorization of this
chapter shall be prescribed in the ordinance or resolution adopted by
the county or city and county, the school district, the community
college district, or the county office of education.
7289.55. The Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code) shall not apply to any standard, criterion,
procedure, determination, rule, notice, or guideline established or
issued by the State Board of Equalization in the administration of
this chapter.
SEC. 8. Section 17041.5 of the Revenue
and Taxation Code is amended to read:
17041.5. Notwithstanding any statute, ordinance, regulation, rule
or decision to the contrary, no a
city, county, city and county, governmental
subdivision, district, public and quasi-public corporation, municipal
corporation, whether incorporated or not or whether chartered or
not, shall not levy or collect or cause to be levied or
collected any tax upon the income, or any part thereof, of any
person, resident or nonresident. For purposes of this section,
"governmental subdivision, district, public and quasi-public
corporation, municipal corporation, whether incorporated or not or
whether chartered or not," shall not inclu de a school
district, a community college district, or a county office of
education.
This section shall not be construed so as to prohibit the levy or
collection of any otherwise authorized license tax upon a business
measured by or according to gross receipts.
SEC. 9. Section 17041.6 is added to the
Revenue and Taxation Code , to read:
17041.6. (a) A local ordinance or resolution, authorized pursuant
to Chapter 3.53 (commencing with Section 7289) of Part 1.7, imposing
a local personal income tax shall become operative for taxable years
beginning on or after January 1 of the year in which the ordinance
or resolution is approved by the voters of the county or city and
county, the school district, the community college district, or the
county office of education.
(b) (1) A local personal income tax may be calculated as a
percentage of taxable income shown on the state personal income tax
return filed for a taxable year by a resident of the county or city
and county, the school district, the community college district, or
the jurisdiction of the county office of education in which the local
personal income tax is imposed.
(2) A local personal income tax shall not exceed 1 percent of
taxable income for a taxable year.
(3) A local personal income tax may be imposed on one or more of
the income tax brackets prescribed in Section 17041.
(c) For each taxable year for which a local personal income tax is
operative under subdivision (a), in addition to any other taxes
imposed by this part, an additional tax on the taxable income of a
county or city and county, a school district, a community college
district, and a county office of education resident shall be imposed
at the rate approved by the voters of that county or city and county,
that school district, that community college district, or that
county office of education.
(d) For purposes of applying Part 10.2 (commencing with Section
18401), including, but not limited to, the requirement for the
payment of estimated tax and wage withholding, the tax imposed under
this section shall be treated as if it were imposed under Section
17041.
(e) Any credit authorized under this part shall not be applied to
reduce taxes imposed under this section.
(f) (1) Prior to the operative date of any ordinance or resolution
imposing a local personal income tax, the county or city and county,
the school district, the community college district, or the county
office of education shall contract with the Franchise Tax Board to
perform all functions incident to the administration of the local
personal income tax.
(2) The contract shall require the county or city and county, the
school district, the community college district, or the county office
of education to reimburse the Franchise Tax Board for all refunds,
losses, and costs incurred in the administration and operation of the
local personal income tax.
(g) Any information, information sources, or enforcement remedies
and capabilities available to the county or city and county, the
school district, the community college district, or the county office
of education shall be made available to the Franchise Tax Board to
be used in
conjunction with, or independent of, the information, information
sources, or remedies and capabilities available to the Franchise Tax
Board for purposes of administering this section.
(h) The Franchise Tax Board may adopt regulations necessary to
administer this section.
(i) (1) Amounts collected pursuant to this section shall be
transmitted to the Treasurer and deposited in the State Treasury to
the credit of the Local Personal Income Tax Account in the General
Fund, which is hereby created.
(2) Notwithstanding Section 13340 of the Government Code, the
moneys in the Local Personal Income Tax Account are hereby
continuously appropriated, without regard to fiscal year, to the
Controller for allocation to each county and city and county, school
district, community college district, and county office of education
in which the local personal income tax is imposed.
(j) Any payments and withholding credits shown on the return shall
be applied in the following order:
(1) Taxes imposed under Part 10 (commencing with Section 17001) or
Part 11 (commencing with Section 23001), including penalties,
interest, and fees, if any, imposed under Part 10.2 (commencing with
Section 18401).
(2) Qualified use tax reported on the return in accordance with
Section 6452.1.
(3) Local personal income taxes imposed under Section 17041.6. If
a taxpayer owes a local personal income tax to more than one county
or city and county, school district, community college district, or
county office of education, and the payments and withholding credits
received are insufficient to satisfy the total amount of all local
personal income taxes due by the taxpayer for the taxable year, the
Franchise Tax Board shall allocate the payments and withholding
credits on a pro rata basis to the county or city and county, school
district, community college district, or county office of education.
(k) For a county office of education, any revenues derived from
the imposition of a local personal income tax as authorized by this
section shall be apportioned to the school districts located within
the jurisdiction of the county office of education on the basis of
average daily attendance.
(l) Notwithstanding Section 19551, the tax officials of a county
or city and county, a school district, a community college district,
or a county office of education shall not be required to do either of
the following:
(1) Request information from the Franchise Tax Board by affidavit.
(2) Provide the affected person with a copy of the affidavit.
(m) The Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code) shall not apply to any standard, criterion, procedure,
determination, rule, notice, or guideline established or issued by
the Franchise Tax Board pursuant to this section.
SEC. 10. Section 30111 of the Revenue
and Taxation Code is amended to read:
30111. The taxes imposed by this part are in lieu of all other
state, county, municipal, or district taxes on the privilege of
distributing cigarettes or tobacco products.
This section does not prohibit the application of Part 1
(commencing with Section 6001), Part 1.5 (commencing with Section
7200), Part 1.6 (commencing with Section 7251), or Article 2
(commencing with Section 37021) of Part 17 to the sale, storage, use
or other consumption of cigarettes or tobacco products , or a
local ordinance or resolution, authorized pursuant to Chapter 3.53
(commencing with Section 7289), imposing a local alcoholic beverage
tax in accordance with Chapter 3.55 (commencing with Section 7289.20)
.
SEC. 11. Section 32010 of the Revenue
and Taxation Code is amended to read:
32010. The taxes imposed by this part are in lieu of all county,
municipal, or district taxes on the sale of beer, wine, or distilled
spirits.
This section does not prohibit the application of Part 1
(commencing with Section 6001), Part 1.5 (commencing with Section
7200) or Part 1.6 (commencing with Section 7251) to the sale,
storage, use or other consumption of beer, wine, or distilled spirits
, or a local ordinance or resolution, authorized pursuant to
Chapter 3.53 (commencing with Section 7289), imposing a local
cigarette and tobacco products tax in accordance with Chapter 3.56
(commencing with Section 7289.31) .
SEC. 12. This act addresses the fiscal emergency
declared and reaffirmed by the Governor by proclamation on January
20, 2011, pursuant to subdivision (f) of Section 10 of Article IV of
the California Constitution.
SECTION 1. It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2010.
SEC. 2. This act addresses the fiscal emergency
declared by the Governor by proclamation on December 6, 2010,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution.