Amended in Senate January 26, 2016

Amended in Senate May 14, 2015

Senate Bill No. 680

Introduced by Senator Wieckowski

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(Coauthor: Senator Hill)

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(Coauthors: Senators Hill and Stone)

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February 27, 2015

An act to add begin insert and repeal end insert Section 6388.6 begin delete to end delete begin insert of end insert the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

SB 680, as amended, Wieckowski. Sales begin insert and use end insert taxes: exemption: begin delete motor end delete begin insert passenger end insert 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 begin delete bill end delete begin insert bill, until January 1, 2020, end insert would begin delete provide an exemption from the sales tax for end delete begin insert exempt those taxes, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, a end insert qualified new begin delete motor vehicles, end delete begin insert passenger vehicle, end insert as defined, and qualified accessories, as defined, that are purchased in California for permanent use outside this state, as provided. begin insert The bill would provide that a qualified new passenger vehicle sold or purchased without payment of tax pursuant to this exemption would be ineligible for any electric vehicle incentive offered by the State of California, as specified. end insert

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 begin delete these end delete begin insert the local tax end insert laws.

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Section 2230 of the Revenue and Taxation Code provides that

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begin insert Existing law requires end insert the state begin delete will end delete begin insert to end insert reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions.

This bill would provide begin delete that, notwithstanding Section 2230 of the Revenue and Taxation Code, end delete begin insert that notwithstanding those provisions, end insert no appropriation is made and the state shall not reimburse begin delete any end delete 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 1.  

Section 6388.6 is added to the Revenue and
Taxation Code, to read:

6388.6.  

(a) There are exempted from the begin delete computation of the
amount of sales tax end delete begin insert taxes imposed by this part, end insert the gross receipts
from the sale begin delete of end delete begin insert in this state of, and the storage, use, or other
consumption in this state of, end insert any qualified new begin delete motor end delete begin insert passenger end insert
vehicle and qualified accessories sold to a person for permanent
use outside this state, provided all of the following conditions are
met:

(1) The qualified new begin delete motor end delete begin insert passenger end insert vehicle is moved to a
point outside of this state within 30 days from the date of purchase.

(2) A one-trip permit for driving or moving the qualified new
begin delete motor end delete begin insert passenger end insert vehicle to a point outside of this state pursuant
to Section 4003 of the Vehicle Code is obtained by a person who
presented an out-of-state driver’s license at the time he or she
obtained the permit.

(3) The purchaser provides the retailer at time of purchase with
an exemption certificate as provided in Section 6421.

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(4) The purchaser is not a California resident, as defined in
Section 516 of the Vehicle Code.

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(b) The exemption certificate shall identify the vehicle, seller,
begin delete and end delete purchaser, begin insert and purchaser’s out-of-state driver’s license or
permit number, end insert state that the vehicle will be removed from this
state within 30 days of the date of purchase, and state that the
vehicle will be licensed and registered outside this state for
permanent use outside this state.

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(c) Notwithstanding any other law, the purchaser of any
qualified new passenger vehicle pursuant to this section is
ineligible for all of the following:

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(1) A rebate administered by the State Air Resources Board or
offered by the Clean Vehicle Rebate Project.

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(2) Any incentive or exemption provided under the Clean Air
Vehicle decal program.

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(3) Any other electric vehicle incentive offered by the State of
California.

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(c)

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begin insert (d) end insert  For purposes of this section:

(1) “Permanent use outside this state” means that the qualified
new begin delete motor end delete begin insert passenger end insert vehicle is licensed, registered, and used
outside this state and the qualified new begin delete motor end delete begin insert passenger end insert vehicle
and qualified accessories do not return to this state within 12
months from the date of purchase.

(2) “Qualified accessories” means tangible personal property
that is affixed or attached to, or sold with, the qualified new begin delete motor end delete
begin insert passenger end insert vehicle, a power source for the qualified new begin delete motor end delete
begin insert passenger end insert vehicle, or other accessories commonly sold with a new
begin delete motor end delete begin insert passenger end insert vehicle that are sold together with the qualified
new begin delete motor end delete begin insert passenger end insert vehicle.

(3) “Qualified new begin delete motor end delete begin insert passenger end insert vehicle” means a begin delete motor
vehicle end delete begin insert passenger vehicle, end insert as begin delete described end delete begin insert defined end insert in begin delete subdivision (a)
of end delete Section begin delete 415 end delete begin insert 465 end insert of the Vehicle begin delete Code end delete begin insert Code, end insert that has not
previously been begin delete sold. end delete begin insert sold, except any of the following motor
vehicles: end insert

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(A) Motorcycles.

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(B) Housecars.

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(C) Motor vehicles constructed on truck chassis.

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(e) This section shall remain in effect only until January 1, 2020,
and as of that date is repealed.

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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.