AB 777, as amended, Muratsuchi. Taxes: exemption: space flight property.
The California Constitution authorizes the Legislature to classify personal property for differential taxation or for exemption by means of a statute approved by a 2⁄3 vote of the membership of each house.
Pursuant to this constitutional authorization, this bill wouldbegin insert, for lien dates from 2007 to 2022, inclusive,end insert exempt qualified property, as defined, for use, or intended for use, in space flight.
By imposing new duties upon local tax officials with respect to the personal property tax exemption described above, this bill would impose a state-mandated local program.
This bill would make a legislative finding and declaration as to the public purpose served by the bill.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Section 2229 of the Revenue and Taxation Code requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
This bill would take effect immediately as a tax levy.
Vote: 2⁄3. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 242 is added to the Revenue and Taxation
2Code, to read:
(a) There is exempted from the taxes imposed by this
4part qualified property for use, or for intended use, in space flight.
5(b) For purposes of this section:
6(1) “Qualified property” means any of the following:
7(A) Tangible personal property, whether raw materials, work
8in process or finished goods, that has, or upon manufacture,
9assembly, or installation has, space flight capacity, including, but
10not limited to, an orbital space facility, space propulsion system,
11space vehicle, launch vehicle, satellite, or space station of any
12kind, and any component
thereof, regardless of whether that
13property is to be ultimately returned to this state.
14(B) Tangible personal property to be placed or used aboard any
15facility, system, vehicle, satellite, or station described in
16subparagraph (A), regardless of whether that property is to be
17ultimately returned to this state.
P3 1(C) Fuel of a quality that is not adaptable for use in ordinary
2motor vehicles, but is produced, sold, and used exclusively for
3space flight.
4(2) “Space flight” means any flight designed for suborbital,
5orbital, or interplanetary travel by a space vehicle, satellite, space
6facility, or space station of any kind.
7(c) The exemption established by this
section shall not be denied
8by reason of failure, postponement, or cancellation of a launch of
9a space vehicle, satellite, space facility, or space station of any
10
kind, or the destruction of any launch vehicle or any component
11thereof, but the exemption shall not apply to any material that is
12not intended tobegin delete byend deletebegin insert beend insert launched into space.
13(d) The exemption pursuant to this section shall apply to lien
14datesbegin delete that areend delete on or after January 1,begin delete 2007.end deletebegin insert 2007, and before January
151, 2023. end insert
16(e) This section shall remain in effect only until January 1, 2024,
17and as of that date is repealed.
The Legislature finds and declares that this act fulfills
19a statewide public purpose because it promotes businesses within
20the state that consistently expand and provide secure employment
21in a much needed industry.
If the Commission on State Mandates determines that
23this act contains costs mandated by the state, reimbursement to
24local agencies and school districts for those costs shall be made
25pursuant to Part 7 (commencing with Section 17500) of Division
264 of Title 2 of the Government Code.
Notwithstanding Section 2229 of the Revenue and
28Taxation Code, no appropriation is made by this act and the state
29shall not reimburse any local agency for any property tax revenues
30lost by it pursuant to this act.
This act provides for a tax levy within the meaning of
32Article IV of the Constitution and shall go into immediate effect.
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