SB 19, as amended, Knight. Sales and use taxes: exemptions: property for use in space flight.
begin deleteThe Sales and Use Tax Law imposes end deletebegin insertExisting sales and use tax laws impose end inserta 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 storage, use, or other consumption in this state.begin delete That lawend deletebegin insert The Sales and Use Tax Lawend insert provides various exemptions frombegin delete that taxend deletebegin insert
those taxesend insert, including an exemption for the gross receipts from the sale of, and the storage, use, or other consumption of, qualified property for use in space flight.
This bill would expand this exemption to also include equipment and materials used to construct, reconstruct, or improve new or existing facilities designed to launch, manufacture, fabricate, assemble, or process equipment that facilitates the renovation, rehabilitation, or reconstruction of commercial space launch sites.
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 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. Section 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 deleteThis bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for sales and use tax revenues lost by them pursuant to this bill.
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 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 insertThis bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 6380 of the Revenue and Taxation Code
2 is amended to read:
(a) There are exempted from the taxes imposed by this
4part the gross receipts from the sale of, and the storage, use, or
5other consumption in this state of, qualified property for use in
6space flight.
7(b) For purposes of this section:
begin insert
8(1) “Facilities designed to launch” includes, but is not limited
9to, a mission control center.
10(1)
end delete11begin insert(2)end insert “Qualified property” means any of the following:
P3 1(A) Tangible personal property that has space flight capability,
2including, but not limited to, an orbital space facility, space
3propulsion system, space vehicle, satellite, or space station of any
4kind, and any component thereof.
5(B) Tangible personal property to be placed or used aboard any
6facility, system, vehicle, satellite, or station described in
7subparagraph (A), regardless of whether that property is to be
8ultimately returned to this state for subsequent use, storage, or
9other consumption.
10(C) Tangible personal property in the form of equipment and
11materials used to construct, reconstruct, or improve new or existing
12facilities designed to launch,
manufacture, fabricate, assemble, or
13process equipment that facilitates the renovation, rehabilitation,
14or reconstruction of commercial space launch sites.
15(D) Fuel of a quality that is not adaptable for use in ordinary
16motor vehicles, but is produced, sold, and used exclusively for
17space flight.
18(2)
end delete
19begin insert(3)end insert “Space flight” means any flight designed for suborbital,
20orbital, or interplanetary travel by a space vehicle, satellite, space
21facility, or space station of any kind.
22(c) The exemption established by this section
shall not be denied
23by reason of a failure, postponement, or cancellation of a launch
24of a space vehicle, satellite, space facility, or space station of any
25kind, or the destruction of any launch vehicle or any component
26thereof.
Notwithstanding Section 2230 of the Revenue and
28Taxation Code, no appropriation is made by this act and the state
29shall not reimburse any local agency for any sales and use tax
30revenues lost by it under this act.
This act provides for a tax levy within the meaning of
32Article IV of the Constitution and shall go into immediate effect.
33However, the provisions of this act shall become operative on the
34first day of the first calendar quarter commencing more than 90
35days after the effective date of this act.
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