BILL NUMBER: SB 1257 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 25, 2012
AMENDED IN SENATE APRIL 16, 2012
INTRODUCED BY Senator Hernandez
FEBRUARY 23, 2012
An act to amend Section 7284.2 of , and to add Section 7284.3
to, the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1257, as amended, Hernandez. Utility user tax: exemption:
public transit vehicles.
Existing law generally provides that the legislative body of
any city and any charter city may make and enforce all ordinances and
regulations with respect to municipal affairs, as provided,
including, but not limited to, a utility user tax on the consumption
of gas and electricity . Existing law
provides that the board of supervisors of any county may levy a
utility user tax on the consumption of, among other things, gas
and electricity, in the unincorporated area of the county.
This bill would provide that no a local
jurisdiction, as defined, may not impose a utility user tax
shall be imposed under these provisions upon
, as specified, upon either the consumption of compressed natural
gas dispensed by a gas compressor, within a local jurisdiction, that
is separately metered and is dedicated to providing compressed
natural gas as a motor vehicle fuel for use by the local agency or
public transit operator or the consumption of electricity used
to charge electric bus propulsion batteries, within a local
jurisdiction, that is separately metered and is dedicated to
providing electricity as fuel for an electric public transit bus.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature to recognize that
public transit operators are moving towards the use of electricity as
the a primary fuel source to meet air
quality objectives at the state and regional levels, as well as to
provide vital public transportation services to transit-dependent
citizens in California. Further, the Mills-Hayes Act (Section 8655 of
the Revenue and Taxation Code) provides that a tax shall not be
imposed upon the use of fuel by public transit operations. Enactment
of this legislation will clarify that, pursuant to the Mills-Hayes
Act, the use consumption of electricity
as a motor vehicle fuel for use by an electric public transit bus
shall be exempt from any taxes imposed upon fuel
the consumption of electricity .
SEC. 2. Section 7284.2 of the Revenue and Taxation Code is amended
to read:
7284.2. (a) The board of
supervisors of any county may levy a utility user tax on the
consumption of electricity, gas, water, sewer, telephone, telegraph,
and cable television services in the unincorporated area of the
county.
(b) (1) For purposes of this section, "gas" shall not be construed
as referring to the consumption of compressed natural gas dispensed
by a gas compressor, within a local jurisdiction, that is separately
metered and is dedicated to providing compressed natural gas as a
motor vehicle fuel for use by the local agency or public transit
operator.
(2) For purposes of this section, "electricity" shall not be
construed as referring to the consumption of electricity used to
charge electric bus propulsion batteries, within a local
jurisdiction, that is separately metered and is dedicated to
providing electricity as a motor vehicle fuel for use by an electric
public transit bus.
(c) For purposes of this section, "local jurisdiction" means any
city, county, city and county, including any chartered city, county,
or city and county, district, or public or municipal corporation.
(d) For purposes of this section "public transit operator" means a
local or regional transit agency or a joint powers agency operating
bus transportation service as defined pursuant to Article 1
(commencing with Section 99200) of Chapter 4 of Part 11 of Division
10 of the Public Utilities Code.
SEC. 3. Section 7284.3 is added to the
Revenue and Taxation Code , to read:
7284.3. (a) For the purposes of this section:
(1) "Local jurisdiction" means any city, county, city and county,
including any chartered city, county, or city and county, district,
or public or municipal corporation.
(2) "Public transit operator" means a local or regional transit
agency or a joint powers agency operating bus transportation service
as described pursuant to Article 1 (commencing with Section 99200) of
Chapter 4 of Part 11 of Division 10 of the Public Utilities Code.
(b) There are exempted from any utility user tax, imposed by any
local jurisdiction, a local agency's or public transit operator's
consumption of compressed natural gas dispensed by a gas compressor,
within a local jurisdiction, that is separately metered and is
dedicated to providing compressed natural gas as a motor vehicle fuel
for use by the local agency or public transit operator.
(c) There are exempted from any utility user tax on the
consumption of electricity, imposed by any local jurisdiction, a
local agency's or public transit operator's consumption of
electricity used to charge electric bus propulsion batteries, within
a local jurisdiction, that is separately metered and is dedicated to
providing electricity as a motor vehicle fuel for use by an electric
public transit bus.
SEC. 4. The Legislature finds and declares that
exempting the consumption of natural gas, electricity, or both, by a
local agency or public transit operator from local utility user taxes
will ensure statewide uniformity and fairness in the overall cost of
providing vital public transportation services to transit dependent
citizens in California. Therefore, exempting from utility user taxes
the consumption of natural gas, electricity, or both, as a motor
vehicle fuel for public transit vehicles by local agencies or public
transit operators is a matter of statewide concern, and not a
municipal affair, as that term is used in Section 5 of
Article XI of the California Constitution.