Amended in Assembly June 8, 2016

Amended in Senate January 26, 2016

Amended in Senate May 14, 2015

Senate BillNo. 680


Introduced by Senator Wieckowski

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(Coauthors: Senators Hill and Stone)

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(Coauthor: Senator Beall)

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February 27, 2015


An actbegin delete to add and repeal Section 6388.6 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.end deletebegin insert relating to state real property, and making an appropriation thereforend insertbegin insert.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 680, as amended, Wieckowski. begin deleteSales and use taxes: exemption: passenger vehicles. end deletebegin insertState real property: surplus: City of Santa Clara.end insert

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Existing law provides that the Director of General Services may acquire and dispose of surplus state real property where that property is not needed by another state agency and the Legislature has authorized disposal of the property. Existing law also specifies the manner in which the Department of General Services is to dispose of surplus state real property. Existing law authorizes the director, subject to certain conditions, to sell, lease, or exchange a specified parcel of real property in the City of Santa Clara upon terms and conditions and subject to reservations and exceptions that the director determines are in the best interests of the state.

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This bill would authorize the director to modify the existing terms and conditions of the transfer to the Housing Authority of the City of Santa Clara of a specified parcel of real property within the City of Santa Clara to allow for residential development of that parcel, as provided. The bill would exempt related state activities from certain provisions of the California Environmental Quality Act. The bill would, as a condition of modifying the terms and conditions of the transfer, require the City of Santa Clara to indemnify, defend, and hold harmless the state from any and all claims, damages, or liabilities arising out of, in connection with, or directly or indirectly resulting from the exercise of the rights authorized by these provisions by the City of Santa Clara, the Housing Authority of the City of Santa Clara, and any subsequent purchaser or transferee of the property. The bill would also require the state to select counsel in any action arising out of, in connection with, or directly or indirectly resulting from the exercise of these rights.

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The California Constitution requires that the proceeds from the sale of surplus state property be used to pay the principal and interest on bonds issued pursuant to the Economic Recovery Bond Act until the principal and interest on those bonds are fully paid, after which these proceeds are required to be deposited into the Special Fund for Economic Uncertainties, a continuously appropriated fund.

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This bill would, if the property described above is used for a residential development, require the department to determine the difference between the actual price paid by the local agency for the property and the fair market value of the property and require the Housing Authority of the City of Santa Clara to pay that difference to the department. By increasing the amount transferred into continuously appropriated funds, this bill would make an appropriation.

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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.

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This bill, until January 1, 2020, would 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 qualified new passenger vehicle, as defined, and qualified accessories, as defined, that are purchased in California for permanent use outside this state, as provided. 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.

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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 the local tax laws.

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

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This bill would provide that notwithstanding those provisions, 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.

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This bill would take effect immediately as a tax levy.

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Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

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begin insert(a)end insertbegin insertend insertbegin insertThe Director of General Services may modify
2the existing terms and conditions, including, but not limited to, the
3existing purchase and sale agreement, as amended, the grant deed,
4and any other applicable transaction documents, of the transfer
5to the Housing Authority of the City of Santa Clara of an
6approximately sixend insert
begin insert-acre parcel of real property within the City of
7Santa Clara, Assessor’s Parcel Number 303-17-053, for the
8purposes set forth in subdivision (b). The director is authorized to
9make any modifications pursuant to this subdivision on terms and
10conditions and subject to any reservations and exceptions that the
11director determines are in the best interests of the state.end insert

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12
(b) (1) The property described in subdivision (a) may be used
13for a residential development including both residential units that
14are affordable to persons of extremely low, very low, or low or
15moderate income and residential units at market rate. As a result
16of any property modification to the original entitlements, the
17Department of General Services shall determine the difference
18between the actual price paid by the local agency for the property
19and the fair market value of the property, which shall be paid by
20the Housing Authority of the City of Santa Clara to the department.

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21
(2) The City of Santa Clara may, subject to the consent of the
22other parties to the agreement, amend the development agreement
P4    1applicable to the property described in subdivision (a) in order to
2remove that property from the agreement.

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3
(c) Any action by the Department of General Services or any
4other state agency necessary to implement this act is exempt from
5Chapter 3 (commencing with Section 21100) to Chapter 6
6(commencing with Section 21165), inclusive, of Division 13 of the
7Public Resources Code, as permitted by paragraph (2) of
8subdivision (k) of Section 11011 of the Government Code.
9However, the City of Santa Clara, the Housing Authority of the
10City of Santa Clara, and any subsequent purchaser or transferee
11of the property described in subdivision (a) shall be subject to any
12local government land use entitlement approval requirements and
13to Chapter 3 (commencing with Section 21100) to Chapter 6
14(commencing with Section 21165), inclusive, of Division 13 of the
15Public Resources Code.

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begin insertSEC. 2.end insert  

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begin insertAs a condition of modifying the terms and conditions
17as provided in subdivision (a) of Section 1 of this act, the City of
18Santa Clara shall indemnify, defend, and hold harmless the state
19from any and all claims, damages, or liabilities arising out of, in
20connection with, or directly or indirectly resulting from the exercise
21of the rights authorized by this act by the City of Santa Clara, the
22Housing Authority of the City of Santa Clara, and any subsequent
23purchaser or transferee. In any action arising out of, in connection
24 with, or directly or indirectly resulting from the exercise of these
25rights, the state shall select counsel to defend the state.end insert

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26

SECTION 1.  

Section 6388.6 is added to the Revenue and
27Taxation Code
, to read:

28

6388.6.  

(a) There are exempted from the taxes imposed by
29this part, the gross receipts from the sale in this state of, and the
30storage, use, or other consumption in this state of, any qualified
31new passenger vehicle and qualified accessories sold to a person
32for permanent use outside this state, provided all of the following
33conditions are met:

34(1) The qualified new passenger vehicle is moved to a point
35outside of this state within 30 days from the date of purchase.

36(2) A one-trip permit for driving or moving the qualified new
37 passenger vehicle to a point outside of this state pursuant to Section
384003 of the Vehicle Code is obtained by a person who presented
39an out-of-state driver’s license at the time he or she obtained the
40permit.

P5    1(3) The purchaser provides the retailer at time of purchase with
2an exemption certificate as provided in Section 6421.

3(4) The purchaser is not a California resident, as defined in
4Section 516 of the Vehicle Code.

5(b) The exemption certificate shall identify the vehicle, seller,
6purchaser, and purchaser’s out-of-state driver’s license or permit
7number, state that the vehicle will be removed from this state within
830 days of the date of purchase, and state that the vehicle will be
9licensed and registered outside this state for permanent use outside
10this state.

11(c) Notwithstanding any other law, the purchaser of any qualified
12new passenger vehicle pursuant to this section is ineligible for all
13of the following:

14(1) A rebate administered by the State Air Resources Board or
15offered by the Clean Vehicle Rebate Project.

16(2) Any incentive or exemption provided under the Clean Air
17Vehicle decal program.

18(3) Any other electric vehicle incentive offered by the State of
19California.

20(d) For purposes of this section:

21(1) “Permanent use outside this state” means that the qualified
22new passenger vehicle is licensed, registered, and used outside
23this state and the qualified new passenger vehicle and qualified
24accessories do not return to this state within 12 months from the
25date of purchase.

26(2) “Qualified accessories” means tangible personal property
27that is affixed or attached to, or sold with, the qualified new
28passenger vehicle, a power source for the qualified new passenger
29vehicle, or other accessories commonly sold with a new passenger
30vehicle that are sold together with the qualified new passenger
31vehicle.

32(3) “Qualified new passenger vehicle” means a passenger
33vehicle, as defined in Section 465 of the Vehicle Code, that has
34not previously been sold, except any of the following motor
35vehicles:

36(A) Motorcycles.

37(B) Housecars.

38(C) Motor vehicles constructed on truck chassis.

39(e) This section shall remain in effect only until January 1, 2020,
40and as of that date is repealed.

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SEC. 2.  

Notwithstanding Section 2230 of the Revenue and
2Taxation Code, no appropriation is made by this act and the state
3shall not reimburse any local agency for any sales and use tax
4revenues lost by it under this act.

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SEC. 3.  

This act provides for a tax levy within the meaning of
6Article IV of the Constitution and shall go into immediate effect.

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