BILL NUMBER: SB 1257	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 16, 2012

INTRODUCED BY   Senator Hernandez

                        FEBRUARY 23, 2012

   An act to amend Section 7284.2 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1257, as amended, Hernandez.  Taxation: utility
  Utility  user tax: public transit vehicles.
   Existing law provides that the board of supervisors of any county
may levy a utility user tax on the consumption of, among other
things, electricity, in the unincorporated area of the county.
   This bill would provide that no utility user tax shall be imposed
under these provisions upon  the consumption of  electricity
 consumed from an in-route fast charger   used
to charge electric bus propulsion batteries  , within a local
jurisdiction, that is separately metered and is dedicated to
providing electricity as fuel for an electric public transit bus.
   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.   It is the intent of the Legislature to recognize that
public transit operators are moving towards the use of electricity as
the primary fuel source to meet air quality objectives at the state
and regional levels, as well as to provide vital public
transportation services to transit-dependent citizens in California.
Further, the Mills-Hayes Act (Section 8655 of the Revenue and
Taxation Code)  states   provides  that
 no   a  tax shall  not  be
imposed upon  the use of  fuel  used  by
public transit operations. Enactment of this legislation will clarify
that, pursuant to the Mills-Hayes Act, the use of electricity as a
motor vehicle fuel for use by an electric public transit bus shall be
exempt from any taxes imposed upon fuel.
  SEC. 2.  Section 7284.2 of the Revenue and Taxation Code is amended
to read:
   7284.2.  (a) The board of supervisors of any county may levy a
utility user tax on the consumption of electricity, gas, water,
sewer, telephone, telegraph, and cable television services in the
unincorporated area of the county.
   (b) (1) For purposes of this section, "gas" shall not be construed
as referring to the consumption of compressed natural gas dispensed
by a gas compressor, within a local jurisdiction, that is separately
metered and is dedicated to providing compressed natural gas as a
motor vehicle fuel for use by the local agency or public transit
operator.
   (2) For purposes of this section, "electricity" shall not be
construed as referring to the consumption of electricity 
from an in-route fast charger   used to charge electric
bus propulsion batteries  , within a local jurisdiction, that is
separately metered and is dedicated to providing electricity as a
motor vehicle fuel for use by an electric public transit bus.
   (c) For purposes of this section, "local jurisdiction" means any
city, county, city and county, including any chartered city, county,
or city and county, district, or public or municipal corporation.
   (d) For purposes of this section "public transit operator" means a
local or regional transit agency or a joint powers agency operating
bus transportation service as defined pursuant to Article 1
(commencing with Section 99200) of Chapter 4 of Part 11 of Division
10 of the Public Utilities Code.