BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 70
                                                                  Page  1


          (  Without Reference to File  )

          SENATE THIRD READING
          SB 70 ( Budget and Fiscal Review Committee)
          As Amended  March 22, 2010
          Majority vote

           SENATE VOTE  :Vote not relevant  
           
           SUMMARY  :  Deletes the current version of this bill and instead,  
          makes technical changes to clarify that those entities that are  
          currently exempt from either paying excise taxes on diesel or  
          the sales tax on gasoline would not be subject to the fuel tax  
          increases contained in AB 6 X8 (Budget Committee) of the  
          2009-2010 session.  Specifically,  this bill:
           
          1)Excludes from the diesel sales tax increase the "dyed-diesel"  
            users, such as railroads and off-road equipment, which are  
            exempt in current law from the excise tax but pay the sales  
            tax.

          2)Excludes from the diesel sales tax increase those that pay  
            only the 1 cent excise tax rate such as school and transit  
            buses.

          3)Excludes from the gasoline excise tax increase users of  
            aircraft fuel that are exempt from the sales tax under current  
            law but are required to pay the excise tax.

          4)Amends the sales tax pre-payment provisions for both gas and  
            diesel to allow the Board of Equalization to adjust  
            pre-payment requirements to match the rate of taxes being  
            levied.

          5)Amends the true-up provisions to clarify intent that the March  
            1 true-up calculation becomes effective during the next fiscal  
            year following the calculation.


           Analysis Prepared by  :    Keali'i Bright / BUDGET / (916)  
          319-2099 

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