BILL NUMBER: AB 2603	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Morrell

                        FEBRUARY 24, 2012

   An act to amend Section 6357.1 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2603, as introduced, Morrell. Sales and use taxes.
   Existing law partially exempts from the taxes imposed by sales and
use tax laws the gross receipts from the sale in this state of, and
the storage, use, or other consumption in this state of, diesel fuel
used in farming and food processing.
   This bill would make a technical, nonsubstantive change to this
provision.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 6357.1 of the Revenue and Taxation Code is
amended to read:
   6357.1.  (a) There are exempted from the taxes imposed by this
part, the gross receipts from the sale in this state of, and the
storage, use, or other consumption in this state of, diesel fuel used
in farming activities and food processing. This section shall be
implemented as soon as possible, but in no case later than September
1, 2001.
   (b) For purposes of this section, "farming activities" has the
same meaning as "farming  business"   business,"
 as set forth in Section 263A of the Internal Revenue Code.
"Farming activities" also includes the transportation and delivery of
farm products to the marketplace.
   (c) The exemption established by this section does not apply with
respect to either of the following:
   (1) A tax imposed under the Bradley-Burns Uniform Local Sales and
Use Tax Law (Part 1.5 (commencing with Section 7200)) or in
accordance with the Transactions and Use Tax Law (Part 1.6
(commencing with Section 7251)).
   (2) A tax imposed under Section 6051.2 or 6201.2, or under Section
35 of Article XIII of the California Constitution.