SB 680, as amended, Wieckowski. Sales taxes: exemption: motor vehicles.
Existing sales and use tax laws impose a 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 the storage, use, or other consumption in this state, and provides various exemptions from those taxes.
This bill would provide an exemption from the sales tax for qualified new motor vehicles, as defined, and qualified accessories, as defined, that are purchased in California for permanent use outside this state, as provided.
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.
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 6388.6 is added to the Revenue and
2Taxation Code, to read:
(a) There are exempted from the computation of the
4amount of sales tax the gross receipts from the sale of any qualified
5new motor vehicle and qualified accessories sold to a person for
6permanent use outside this state, provided all of the following
7conditions are met:
8(1) The qualified new motor vehicle is moved to a point outside
9of this state within 30 days from the date of purchase.
10(2) A one-trip permit for driving or moving the qualified new
11motor vehicle to a point outside of this state pursuant to Section
124003 of the Vehicle Code isbegin delete obtained.end deletebegin insert
obtained by a person who
13presented an out-of-state driver’s license at the time he or she
14obtained the permit.end insert
15(3) The purchaser provides the retailer at time of purchase with
16an exemption certificate as provided in Section 6421.
17(b) The exemption certificate shall identify the vehicle, seller,
18and purchaser, state that the vehicle will be removed from this
19state within 30 days of the date of purchase, and state that the
20vehicle will be licensed and registered outside this state for
21permanent use outside this state.
22(c) For purposes of this section:
23(1) “Permanent use outside this state” means that the qualified
24new motor vehicle is
licensed, registered, and used outside this
25state and the qualified new motor vehicle and qualified accessories
26do not return to this state within 12 months from the date of
27purchase.
P3 1(2) “Qualified accessories” means tangible personal property
2that is affixed or attached to, or sold with, the qualified new motor
3vehicle, a power source for the qualified newbegin insert motorend insert vehicle, or
4other accessories commonly sold with a new motor vehicle that
5are sold together with the qualified new motor vehicle.
6(3) “Qualified new motor vehicle” means a motor vehicle as
7described in subdivision (a) of Section 415 of the Vehicle Code
8that has not previously been
sold.
Notwithstanding Section 2230 of the Revenue and
10Taxation Code, no appropriation is made by this act and the state
11shall not reimburse any local agency for any sales and use tax
12revenues lost by it under this act.
This act provides for a tax levy within the meaning of
14Article IV of the Constitution and shall go into immediate effect.
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