BILL NUMBER: AB 88	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 20, 2015
	AMENDED IN ASSEMBLY  APRIL 6, 2015

INTRODUCED BY   Assembly Member Gomez
   (Principal coauthor: Senator Hall)
   (Coauthors: Assembly Members Alejo, Bonta, Brown, Chau, Chiu,
Dababneh, Dodd, Gipson, Gray, Jones-Sawyer, Levine, Lopez, McCarty,
Nazarian, O'Donnell, Rendon, Salas, Waldron, and Wilk)
   (Coauthors: Senators Cannella, Mendoza, and Vidak)

                        JANUARY 7, 2015

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



	LEGISLATIVE COUNSEL'S DIGEST


   AB 88, as amended, Gomez. Sales and use taxes: exemption: energy
or water efficient home appliances.
   (1) Existing sales and 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   bill, until January 1, 2021,
 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.
 This bill would define terms for its purposes. 
   (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  generally  in accordance with the Transactions and
Use Tax Law, which generally 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.
 
   (3) This 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: 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) (1) 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   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) Any amounts that would have been paid as sales tax
reimbursement or use tax by the public utility but for the exemption
provided by paragraph (1) shall be used by the public utility to
purchase additional energy or water efficient home appliances to be
provided at no cost to low-income participants in the energy
efficiency program.
   (b) For purposes of this section:
   (1) "Energy or water efficient home appliance" means a 
refrigerator, dishwasher, washer, dryer, or other appliance 
 refrigerator or clothes washer  that meets performance
requirements under the ENERGY STAR program, established pursuant to
Section 6294a of Title 42 of the United States  Code.
  Code. 
   (2) "Low-income participant" means  any   a
 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, Special Supplemental Nutrition Program
for Women, Infants, and Children 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.   is a
participant in the California Alternate Rates for Energy program,
also known as the CARE program, as established by Section 739.1 of
the Public Utilities Code. 
   (3) "Public utility" means an entity defined in Section 216 or
224.3 of the Public Utilities Code. 
   (c) This section shall remain in effect only until January 1,
2021, and as of that date is repealed. 
  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. 
   SEC. 3.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect. However, the provisions of this act shall become
operative on the first day of the first calendar quarter commencing
more than 90 days after the effective date of this act.