Amended in Assembly August 26, 2013

Amended in Assembly May 21, 2013

Amended in Assembly April 16, 2013

Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 777


Introduced by Assembly Member Muratsuchi

(Principalbegin delete coauthor:end deletebegin insert coauthors:end insert Assemblybegin delete Memberend deletebegin insert Members Bradford andend insert Hall)

(Coauthors: Assembly Membersbegin insert Achadjian,end insert Bloom,begin insert Bocanegra,end insert Ian Calderon, Chau,begin insert Dahle,end insert Fox, Garcia, Gomez, Gorell,begin insert Harkey,end insert Holden,begin insert Medina,end insert V. Manuel Pérez, and Rendon)

(Coauthors: Senators Emmerson, Knight, Roth, and Wright)

February 21, 2013


An act to add and repeal Section 242 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 23 vote of the membership of each house.

Pursuant to this constitutional authorization, this billbegin delete would, for lien dates from 2007 to 2022, inclusive,end deletebegin insert would, for the January 1, 2013, lien date to, and including, the January 1, 2023, lien date,end insert exempt qualified property, as defined, forbegin delete use, or intended for use,end deletebegin insert useend insert 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: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 242 is added to the Revenue and Taxation
2Code
, to read:

3

242.  

(a) There is exempted from the taxes imposed by this
4part qualified property forbegin delete use, or for intended use,end deletebegin insert useend insert in space
5flight.

6(b) For purposes of this section:

7(1) “Qualified property” means any of the following:

8(A) Tangible personal property, whether raw materials, work
9in process or finished goods, that has, or upon manufacture,
10assembly, or installation has, space flight capacity, including, but
11not limited to, an orbital space facility, space propulsion system,
12space vehicle, launch vehicle, satellite, or space station of any
13kind, and any component thereof, regardless of whether that
14property is to be ultimately returned to this state.

P3    1(B) Tangible personal property to be placed or used aboard any
2facility, system, vehicle, satellite, or station described in
3subparagraph (A), regardless of whether that property is to be
4ultimately returned to this state.

5(C) Fuel of a quality that is not adaptable for use in ordinary
6motor vehicles, but is produced, sold, and used exclusively for
7space flight.

8(2) “Space flight” means any flight designed for suborbital,
9orbital, or interplanetary travel by a space vehicle, satellite, space
10facility, or space station of any kind.

11(c) The exemption established by this section shall not be denied
12by reason of failure, postponement, or cancellation of a launch of
13a space vehicle, satellite, space facility, or space station of any
14 kind, or the destruction of any launch vehicle or any component
15thereof, but the exemption shall not apply to any material that is
16not intended to be launched into space.

begin delete

17(d) The exemption pursuant to this section shall apply to lien
18dates on or after January 1, 2007, and before January 1, 2023.

end delete
begin insert

19(d) This section shall be operative from the January 1, 2013,
20lien date to, and including, the January 1, 2023, lien date, and is
21inoperative for any lien date thereafter.

end insert
begin insert

22(e) A taxpayer shall provide, upon request of the assessor,
23evidence that the qualified property exempted from the taxes
24imposed by this part pursuant to this section has been or will be
25used as described in subparagraph (A) or (B) of paragraph (1) of
26subdivision (b).

end insert
begin insert

27(f) The exemption provided by this section from the taxes
28imposed by this part shall be limited to taxpayers that have a
29primary business purpose in space flight activities.

end insert
begin delete

16 30(e)

end delete

31begin insert(g)end insert This section shall remain in effect only untilbegin delete January 1, 2024,end delete
32begin insert July 1, 2024,end insert and as of that date is repealed.

33

SEC. 2.  

The Legislature finds and declares that this act fulfills
34a statewide public purpose because it promotes businesses within
35the state that consistently expand and provide secure employment
36in a much needed industry.

37

SEC. 3.  

 If the Commission on State Mandates determines
38that this act contains costs mandated by the state, reimbursement
39to local agencies and school districts for those costs shall be made
P4    1pursuant to Part 7 (commencing with Section 17500) of Division
24 of Title 2 of the Government Code.

3

SEC. 4.  

 Notwithstanding Section 2229 of the Revenue and
4Taxation Code, no appropriation is made by this act and the state
5shall not reimburse any local agency for any property tax revenues
6lost by it pursuant to this act.

7

SEC. 5.  

 This act provides for a tax levy within the meaning
8of Article IV of the Constitution and shall go into immediate effect.



O

    95