BILL NUMBER: AB 777	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 21, 2013
	AMENDED IN ASSEMBLY  APRIL 16, 2013
	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Muratsuchi
    (   Principal coauthor:   Assembly Member
  Hall   ) 
    (   Coauthors:   Assembly Members 
 Bloom,   Ian Calderon,   Chau,  Fox,
  Garcia,   Gomez,   Gorell,  
Holden,   V. Manuel Pérez,   and Rendon  
) 
    (   Coauthors:   Senators  
Emmerson,   Knight,   Roth,   and Wright
  ) 

                        FEBRUARY 21, 2013

   An act to add  and repeal  Section 242  to
  of  the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy.



	LEGISLATIVE COUNSEL'S DIGEST


   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 would
 , for lien dates from 2007 to 2022, inclusive,  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 1.  Section 242 is added to the Revenue and Taxation Code,
to read:
   242.  (a) There is exempted from the taxes imposed by this part
qualified property for use, or for intended use, in space flight.
   (b) For purposes of this section:
   (1) "Qualified property" means any of the following:
   (A) Tangible personal property, whether raw materials, work in
process or finished goods, that has, or upon manufacture, assembly,
or installation has, space flight capacity, including, but not
limited to, an orbital space facility, space propulsion system, space
vehicle, launch vehicle, satellite, or space station of any kind,
and any component thereof, regardless of whether that property is to
be ultimately returned to this state.
   (B) Tangible personal property to be placed or used aboard any
facility, system, vehicle, satellite, or station described in
subparagraph (A), regardless of whether that property is to be
ultimately returned to this state.
   (C) Fuel of a quality that is not adaptable for use in ordinary
motor vehicles, but is produced, sold, and used exclusively for space
flight.
   (2) "Space flight" means any flight designed for suborbital,
orbital, or interplanetary travel by a space vehicle, satellite,
space facility, or space station of any kind.
   (c) The exemption established by this section shall not be denied
by reason of failure, postponement, or cancellation of a launch of a
space vehicle, satellite, space facility, or space station of any
kind, or the destruction of any launch vehicle or any component
thereof, but the exemption shall not apply to any material that is
not intended to  by   be  launched into
space.
   (d) The exemption pursuant to this section shall apply to lien
dates  that are  on or after January 1, 
2007.   2007, and before January 1, 2023.  
   (e) This section shall remain in effect only until January 1,
2024, and as of that date is repealed. 
  SEC. 2.  The Legislature finds and declares that this act fulfills
a statewide public purpose because it promotes businesses within the
state that consistently expand and provide secure employment in a
much needed industry.
  SEC. 3.   If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
  SEC. 4.   Notwithstanding Section 2229 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse any local agency for any property tax revenues lost by it
pursuant to this act.
  SEC. 5.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.