Amended in Assembly June 15, 2013

Amended in Assembly June 6, 2013

Amended in Assembly April 2, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1077

Introduced by Assembly Members Muratsuchi and Ting

(Coauthors: Assembly Members Stone and Williams)

February 22, 2013

An act to add begin delete and repeal Sections end delete begin insert Section end insert 6378.5 begin insert to, end insert and begin insert to add and repeal Section end insert 10759.5 of begin insert , end insert the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

AB 1077, as amended, Muratsuchi. Sales and use taxes: vehicle license fee: begin delete exclusion: end delete alternative fuel motor vehicles.

begin delete

The Sales and Use Tax Law imposes state

end delete

begin insert Existing sales and use tax laws impose end insert sales and use taxes 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 storage, use, or other consumption in this state, measured by the sales price. Existing law also provides for specific exemptions from these taxes.

This bill would, on and after January 1, 2014, and before January 1, 2022, exempt from begin delete the end delete begin insert those end insert taxes begin delete imposed by the Sales and Use Tax Law end delete begin insert , end insert that portion of the gross receipts from the sale of, and begin insert that portion of the sales price with respect to end insert the storage, use, or other consumption of, a qualified motor vehicle, as defined, that is the greater of (1) the sum of the amount of any credit under a specified provision of the Internal Revenue Code relating to new qualified plug-in electric drive motor vehicles, and any amount received, awarded, or allowed pursuant to a state incentive program for the purchase or lease of an alternative fuel vehicle; or (2) the value of a motor vehicle that is traded in for the motor vehicle that qualifies for a credit or incentive amount under those programs, begin delete where end delete begin insert if end insert the value of the trade-in motor vehicle is separately stated on the new motor vehicle invoice or bill of sale or similar document provided to the purchaser.

The 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. Exemptions from state sales and use taxes are incorporated into these laws.

This bill would specify that this exclusion does not apply to local sales and use taxes begin delete and end delete begin insert , end insert transactions and use taxes, or to begin delete certain end delete begin insert specified end insert state sales and use begin delete tax rates end delete begin insert taxes end insert .

The Vehicle License Fee Law provides that the annual amount of the license fee for any vehicle is 0.65% of the market value of the vehicle, as specified. That law provides for the determination of the market value of any vehicle, for reclassification to increase the market value of a vehicle, and for the exemption of certain vehicles from the imposition of the license fee.

This bill would, on and after January 1, 2014, and before January 1, 2022, for purposes of determining the vehicle license fee, exempt from the determination of market value of a new motor vehicle propelled by alternative fuels any amount allowed as a credit under a specified provision of the Internal Revenue Code, relating to new qualified plug-in electric drive motor vehicles, and any amounts received, awarded, or allowed pursuant to a state incentive program for the purchase or lease of an alternative fuel vehicle begin insert , as provided end insert .

This bill would take effect immediately as a tax levy.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

Section 6378.5 is added to the Revenue and
Taxation Code, to read:

6378.5.  

(a) There are exempted from the taxes imposed by
this part that portion of the gross receipts begin delete , end delete from the sale of, and
begin insert that portion of the sales price with respect to end insert the storage, use, or
other consumption in this state of, a qualified motor vehicle, that
is equal to the greater of the following:

(1) The sum of both of the following:

(A) The amount of any new Qualified Plug-in Electric Drive
Motor Vehicle credit received with respect to the qualified motor
vehicle under Section 30D of the Internal Revenue Code.

(B) The amount of any state incentive amount received,
awarded, or allowed with respect to the qualified motor vehicle
under the Clean Vehicle Rebate Project, the California Hybrid and
Zero-Emission Truck and Bus Voucher Incentive Project, or the
On-Road Heavy-Duty Voucher Incentive Program within the Carl
Moyer Program.

(2) The trade-in value of a motor vehicle that is traded in for
the qualified motor vehicle begin delete where end delete begin insert if end insert the value of the trade-in motor
vehicle is separately stated on the new motor vehicle invoice or
bill of sale or similar document provided to the purchaser.

(b) For purposes of this section, “qualified motor vehicle” means
a motor vehicle that receives, or is awarded or allowed, either or
both of the following:

(1) A credit for a Qualified Plug-in Electric Drive Motor Vehicle
under Section 30D of the Internal Revenue Code.

(2) A state incentive amount under the Clean Vehicle Rebate
Project, the California Hybrid and Zero-Emission Truck and Bus
Voucher Incentive Project, or the On-Road Heavy-Duty Voucher
Incentive Program within the Carl Moyer Program.

(c) (1) Notwithstanding any provision of the Bradley-Burns
Uniform Local Sales and Use Tax Law (Part 1.5 (commencing
with Section 7200)) or the Transactions and Use Tax Law (Part
1.6 (commencing with Section 7251)), the exemption established
by this section shall not apply with respect to any tax levied by a
county, city, or district pursuant to, or in accordance with, either
of those laws.

(2) The exemption established by this section shall not apply
with respect to any tax levied pursuant to Section 6051.2 or 6201.2,
begin insert or end insert pursuant to Section 35 of Article XIII of the California
Constitution.

(d) This section shall become operative on January 1, 2014, and
shall remain in effect only until January 1, 2022.

SEC. 2.  

Section 10759.5 is added to the Revenue and Taxation
Code, to read:

10759.5.  

(a) For purposes of determining the vehicle license
fee imposed by this part, there are exempted from the determination
of market value of a new motor vehicle propelled by alternative
fuels the sum of the amount allowed as a credit under Section 30D
of the Internal Revenue Code, relating to new qualified plug-in
electric drive motor vehicles, and any state incentive amount
received, awarded, or allowed under the Clean Vehicle Rebate
Project, the California Hybrid and Zero-Emission Truck and Bus
Voucher Incentive Project, or the On-Road Heavy-Duty Voucher
Incentive Program within the Carl Moyer Program.

begin insert

(b) This exemption shall apply to the initial and subsequent
determinations of market value pursuant to subdivision (a).

end insert begin delete

(b)

end delete

begin insert (c) end insert  This section shall become operative on January 1, 2014, and
shall remain in effect only until January 1, 2022, and as of that
date is repealed.

SEC. 3.  

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