AB 220, as amended, Ting. Sales and use taxes: exemption: low-emission vehicles.
(1) Existing sales and use tax laws impose 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 the storage, use, or other consumption in this state, and provides various exemptions from those taxes.
The bill would, until January 1, 2018, exempt from those taxes the gross receipts from the sale of, and the storage, use, or other consumption of, specified low-emission vehicles purchased by a person.
end deleteThe 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 also authorizes districts, as specified, to impose transactions and use taxes in conformity 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.
end deleteThis bill would specify that this exemption does not apply to local sales and use taxes.
end deleteThe bill would, until January 1, 2018, provide either a partial exemption or a partial exclusion from those taxes with respect to the sale of specified low-emission vehicles, as provided.
end insertbegin insertThe 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. Amendments to state sales and use taxes are incorporated into these laws.
end insertbegin insertSection 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.
end insertbegin insertThis bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse any local agencies for sales and use tax revenues lost by them pursuant to this bill.
end insert(2) This bill would take effect immediately as a tax levy.
Vote: majority.
Appropriation: no.
Fiscal committee: yes.
State-mandated local program: begin deleteno end deletebegin insertyesend insert.
The people of the State of California do enact as follows:
Section 6377 is added to the Revenue and
2Taxation Code, to read:
(a) There are exempted from the taxes imposed by this
4part thebegin insert end insertbegin insertgreater of either of the following:end insert
5begin insert(1)end insertbegin insert end insertbegin insertTheend insert gross receipts from the sale of, and the storage and use
6of, or other consumption in this state of, any vehicle, as specified
7in paragraphs (1) or (5) of subdivision (a) of Section 5205.5 of the
8Vehicle Code, or any
successor to thosebegin delete provisionsend deletebegin insert
provisions, or
9advanced technology medium and heavy duty vehicles that are
10eligible for the California Hybrid and Zero-Emission Truck and
P3 1Bus Voucher Incentive Project funded under the Air Quality
2Improvement Program at the Air Resources Board or the Natural
3Gas and Propane Vehicle Buydown program funded by the
4Alternative and Renewable Fuel and Vehicle Technology Program
5at the California Energy Commission, which exemption shall not
6include any tax levied by a county, city, or district pursuant to, or
7in accordance with, either the Bradley-Burns Uniform Local Sales
8and Use Tax Law (Part 1.5 (commencing with Section 7200)) or
9the Transactions and Use Tax Law (Part 1.6 (commencing with
10Section 7251)) of those lawsend insert.
11(b) Notwithstanding any provision of the Bradley-Burns
12Uniform Local Sales and Use Tax Law (Part 1.5 (commencing
13with Section 7200)) or the Transactions and Use Tax Law (Part
141.6
(commencing with Section 7251)), the exemption established
15by this section shall not apply with respect to any tax levied by a
16county, city, or district pursuant to, or in accordance with, either
17of those laws.
18(2) The gross receipts measured by the value of a motor vehicle
19traded in for a vehicle described in paragraph (1) or (5) of
20subdivision (a) of Section 5205.5 of the Vehicle Code, or any
21successor to those provisions, or advanced technology medium
22and heavy duty vehicles that are eligible for the California Hybrid
23and Zero-Emission Truck and Bus Voucher Incentive Project
24funded under the Air Quality Improvement Program at the Air
25Resources Board or the Natural Gas and Propane Vehicle
26Buydown program funded by the Alternative and Renewable Fuel
27and Vehicle Technology Program at the California
Energy
28Commission, if the value of the trade-in motor vehicle is separately
29stated on the new motor vehicle invoice or bill of sale or similar
30document provided to the purchaser.
31(b) Notwithstanding subdivision (a), the exemption established
32by this section shall not apply with respect to any tax levied
33pursuant to Section 6051.2 or 6201.2, pursuant to Section 35 of
34Article XIII of the California Constitution, or any tax levied
35pursuant to Section 6051 or 6201 that is deposited in the State
36Treasury to the credit of the Local Revenue Fund 2011 pursuant
37to Section 6051.15 or 6201.15.
38(c) This section shall remain in effect only until January 1, 2018,
39and as of that date is repealed, unless a later enacted statute, that
40is
enacted before January 1, 2018, deletes or extends that date.
Notwithstanding Section 2230 of the Revenue and
2Taxation Code, no appropriation is made by this act and the state
3shall not reimburse any local agency for any sales and use tax
4revenues lost by it under this act.
This act provides for a tax levy within the meaning of
7Article IV of the Constitution and shall go into immediate effect.
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