SB 1394,
as amended, Hall. begin deleteSales and use taxes. end deletebegin insertPrivate railroad car tax: valuation.end insert
The California Constitution authorizes the Legislature to classify personal property for differential taxation or for exemption by means of a statute approved by a 2⁄3 vote of the membership of each house. Under the Private Railroad Car Tax Law, the State Board of Equalization assesses and taxes private railroad cars operated upon railroads in this state. In making an assessment, the board is required to determine the average number of each class of private railroad cars physically present in the state in the calendar year immediately preceding the fiscal year in which the tax is imposed upon the basis of car days.
end insertbegin insertThis bill would, commencing with the 2018-19 fiscal year and for each fiscal year thereafter, instead require the board, in making the assessment, to determine the physical presence of private railroad cars in the state in the calendar year immediately preceding the fiscal year in which the tax is imposed upon the basis of mileage. For assessments for the 2017-18 fiscal year, the bill would require the board to determine the physical presence of private railroad cars for the 2016 calendar year on the basis of both mileage and car days equally weighted.
end insertbegin insertExisting law also requires the board, in making the above assessment, to value the cars by class based on the owner’s acquisition cost, less depreciation.
end insertbegin insertThis bill would instead require the board, in making the assessment, to value the cars based on the owner’s acquisition cost, including additions and betterments, less depreciation.
end insertbegin insertExisting law defines the term “class of private railroad cars” for purposes of the Private Railroad Car Tax Law.
end insertbegin insertThis bill would delete the definition of the term “class of private railroad cars” and make various conforming changes.
end insertbegin insertThis bill would take effect immediately as a tax levy.
end insertExisting sales and use tax laws impose taxes 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 storage, use, or other consumption in this state, and provides various exemptions from those taxes. Existing law authorizes the State Board of Equalization to file a certificate relating to a person’s unpaid sales and use tax, within 10 years after the amount is due, with the office of the Clerk of the Superior Court of Sacramento County or of any county in the state requesting judgment be entered.
end deleteThis bill would make nonsubstantive changes to these provisions.
end deleteVote: begin deletemajority end deletebegin insert2⁄3end insert.
Appropriation: no.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 11206 of the end insertbegin insertRevenue and Taxation Codeend insert
2
begin insert is repealed.end insert
“Class of private railroad cars” means the Association
4of American Railroad’s, or successor organization’s, one letter
5alpha component of its car type codes as contained in that
6organization’s Exhibit D of the UMLER specification manual or
7successor exhibit.
begin insertSection 11292 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
9amended to read:end insert
In making the assessment, the board shall value the
11carsbegin delete by classend delete based on the owner’s acquisition cost,begin insert including
P3 1additions and betterments,end insert less depreciation. The depreciation
2shall be computed for these enumerated Association of American
3Railroad’s, or successor organization’s, car type groups on a
4straight-line basis with the indicated depreciable life schedules
5with a maximum of 80 percent depreciation allowed.
6(a) Stack cars (alpha S): 22 years minus the age at acquisition.
7(b) Lightweight, low profile intermodal cars (alpha Q): 22 years
8minus the age at acquisition.
9(c) Flat cars (alpha F): 22 years minus the age at acquisition.
10(d) Conventional intermodal cars (alpha P): 22 years minus the
11age at acquisition.
12(e) Vehicular flat cars (alpha V): 22 years minus the age at
13acquisition.
14(f) All other cars (all other alphas): 25 years minus the age at
15acquisition.
16(g) Betterments: the remaining depreciable life of the car to
17which the betterment is applied.
18Acquisition cost is defined as the expenditures required to be
19capitalized by generally accepted accounting principles.
begin insertSection 11293 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
21amended to read:end insert
In making anbegin delete assessment,end deletebegin insert assessment when the tax is
23imposed on the basis of car days,end insert the board shall determine the
24average numberbegin delete of each classend delete of private railroad cars physically
25present in the state in the calendar year immediately preceding the
26fiscal year in which the tax is imposed upon the basis of car days.
27The board shall multiply the average number so determined by the
28begin insert average carend insert valuebegin delete of a car of that classend delete
as determined under Section
2911292 and use the product for the assessment of the cars.
begin insertSection 11293.5 is added to the end insertbegin insertRevenue and Taxation
31Codeend insertbegin insert, to read:end insert
In making an assessment when the tax is imposed on
33the basis of mileage, the board shall determine the physical
34presence of private railroad cars in this state in the calendar year
35immediately preceding the fiscal year in which the tax is imposed
36upon the basis of mileage, using the ratio of miles in this state to
37the total miles. The board shall multiply the ratio so determined
38by the value as determined under Section 11292 and use the
39product for the assessment of the cars.
begin insertSection 11294 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
2amended to read:end insert
In determining the averages required in Section 11293,
4the board shall exclude from the California factorbegin delete car mileage,end delete car
5days or such other data which occurs while cars are not qualified
6for revenue service and are in a repair facility in this state requiring
7and undergoing or awaiting remodeling, overhaul, renovation,
8conversion or repair which necessitates total labor in excess of 10
9man-hours.
10Car days excluded pursuant to this section shall not exceed 90
11days per car unless the claimant provides substantiation of the
12necessity for the additional days in such form as prescribed by the
13board.
begin insertSection 11295 is added to the end insertbegin insertRevenue and Taxation
15Codeend insertbegin insert, to read:end insert
(a) For the assessment of tax for the 2017-18 fiscal
17year, the board shall determine the physical presence of private
18railroad cars in this state for the 2016 calendar year upon the
19basis of both mileage and car days equally weighted.
20
(b) Commencing with the 2018-19 fiscal year and for each
21fiscal year thereafter, the board shall impose the tax on the basis
22of mileage.
This act provides for a tax levy within the meaning of
24Article IV of the Constitution and shall go into immediate effect.
Section 6736 of the Revenue and Taxation Code
26 is amended to read:
If any amount required to be paid to the state under this
28part is not paid when due, the board may, within 10 years after the
29amount is due, file in the office of the Clerk of the Superior Court
30of Sacramento County or of any county within the state a certificate
31specifying the amount required to be paid, interest
and penalty
32due, the name and address as it appears on the records of the board
33of the person liable, the compliance of the board with this part in
34relation to the determination of the amount required to be paid,
35and a request that judgment be entered against the person in the
36amount required to be paid, together with interest and penalty as
37set forth in the certificate.
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