BILL NUMBER: AB 88	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gomez
   (Coauthor: Senator Hall)

                        JANUARY 7, 2015

   An act to add Section 6371.5 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 88, as introduced, Gomez. Sales and use taxes: exemption:
energy or water efficient home appliances.
   (1) Existing sales an use tax laws impose a tax on retailers
measured by the gross receipts from their sales of tangible personal
property sold at retail in this state, or on the storage, use, or
other consumption of tangible personal property purchased from a
retailer for storage, use, or other consumption in this state, and
specify certain exemptions from the amount of tax imposed.
   This bill would exempt from these taxes the gross receipts from
the sale of, and the storage, use, or other consumption in this state
of, an energy or water efficient home appliance purchased by a
public utility that is provided at no cost to a low-income
participant in a federal, state, or ratepayer-funded energy
efficiency program for use by that low-income participant in the
energy efficiency program.
   (2) 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. Amendments to 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.
   This 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.
   (3) 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 6371.5 is added to the Revenue and Taxation
Code, to read:
   6371.5.  (a) There are exempted from the taxes imposed by this
part the gross receipts from the sale of, and the storage and use of,
or other consumption in this state of an energy or water efficient
home appliance purchased by a public utility that is provided at no
cost to a low-income participant in a federal, state, or
ratepayer-funded energy efficiency program for use by that low-income
participant in the energy efficiency program.
   (b) For purposes of this section:
   (1) "Energy or water efficient home appliance" means an appliance
that meets performance requirements under the ENERGY STAR program,
established pursuant to Section 6294a of Title 42 of the United
States Code, or a similarly labeled refrigerator, dishwasher, washer,
dryer, or other appliance with a Tier I equivalent or better energy
efficiency rating.
   (2) "Low-income participant" means any person who is, or who is
residing in a home with a person who is, a recipient of Medi-Cal,
CalFresh, CalWORKs, Supplemental Security Income, Women, Infant, and
Children Nutrition Supplement, Low-Income Home Energy Assistance
Program, State Utility Assistance Supplement, or some other state or
federal means tested program or is able to certify that their gross
income, not including any amount of food assistance, is less than 200
percent of the federal poverty guidelines.
   (3) "Public utility" means an entity defined in Section 216 or
224.3 of the Public Utilities Code.
  SEC. 2.  Notwithstanding Section 2230 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse any local agency for any sales and use tax revenues lost by
it under this act.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.