Amended in Senate May 14, 2014

Amended in Assembly January 6, 2014

Amended in Assembly April 23, 2013

Amended in Assembly April 8, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 769

Introduced by Assembly Member Skinner

February 21, 2013

begin delete An act to amend Section 402.5 of the Revenue and Taxation Code, relating to taxation. end delete begin insert An act to add and repeal Section 6356.9 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 769, as amended, Skinner. begin delete Property taxation: valuing property: comparable sales. end delete begin insert Sales and use taxes: exemption: efficient clothes washers. end insert

begin insert

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 storage, use, or other consumption in this state, as measured by sales price. Those laws provides various exemptions from those taxes.

end insert begin insert

This bill would, on and after July 1, 2014, exempt from those taxes the gross receipts and the sales price that do not exceed $750 from the sale of, and the storage, use, or other consumption in this state of, a qualified efficient clothes washer purchased for installation and use in this state.

end insert begin insert

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 conformity with the Transactions and Use Tax Law, which conforms to the Sales and Use Tax Law. Exemptions from state sales and use taxes are incorporated into these laws.

end insert begin insert

This bill would specify that this exemption does not apply to local sales and use taxes, transactions and use taxes, and specified state taxes from which revenues are deposited into the Fiscal Recovery Fund, Local Public Safety Fund, the Education Protection Account, Local Revenue Fund, and Local Revenue Fund 2011.

end insert begin insert

This bill would be in effect until July 1, 2015, unless the state of emergency declared by the Governor due to drought conditions on January 17, 2014, is terminated before July 1, 2015, and would provide that in that event, this bill would remain in effect only until midnight on the first day of the first calendar quarter commencing more than 60 days after the date of the termination of the state of emergency.

end insert begin insert

This bill would take effect immediately as a tax levy.

end insert begin delete

Existing property tax law requires, when valuing property by comparison with sales of other properties, that to be considered comparable the sales be sufficiently near in time to the valuation date and that the properties sold be located sufficiently near, and be sufficiently alike, the property being valued, as specified.

end delete begin delete

This bill would make a clarifying change to this provision.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

end insert begin insert

The Legislature finds and declares all of the
following:

end insert begin insert

(a) Water is a finite resource in California, and dry hydrologic
conditions caused by current drought conditions increase the
uncertainty of water supplies.

end insert begin insert

(b) The 2013 calendar year was the driest year on record in
California, and persistent dry conditions since 2012 have led to
alarmingly low water levels in the state’s snowpack, reservoirs,
river systems, and underground aquifers.

end insert begin insert

(c) Reliable water supplies are essential for public health and
safety; the stability of local, regional, and statewide economies;
and food security.

end insert begin insert

(d) Water use efficiency and conservation measures, including
the use of efficient clothes washers, are effective strategies for
helping local communities withstand drought conditions and
respond to increasing water scarcity.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert begin insert

It is the intent of the Legislature to provide for a sales
and use tax exemption for the sale of, and the storage, use, or other
consumption of, efficient clothes washers from a portion of the
state sales and use taxes to reduce household water usage amid
the exceptional drought California is facing.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 6356.9 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 6356.9. end insert   

(a) On and after July 1, 2014, there are exempted
from the taxes imposed by this part the gross receipts that do not
exceed seven hundred fifty dollars ($750) from the sale of, and the
storage, use, or other consumption in this state, as measured by
sales price that does not exceed seven hundred fifty dollars ($750)
of, a qualified efficient clothes washer purchased for installation
and use in this state.

(b) For purposes of this section, “qualified efficient clothes
washer” means any residential or commercial washer of a model
that has been recognized by the United States Environmental
Protection Agency as meeting the agency’s performance
requirements under the ENERGY STAR program, established
pursuant to Section 6294a of Title 42 of the United States Code,
and at the time of sale or purchase is included on the list entitled
“ENERGY STAR Certified Residential Clothes Washers” or
“ENERGY STAR Certified Commercial Clothes Washers”
maintained by the agency, in effect on the effective date of this
section.

(c) (1) Notwithstanding the Bradley-Burns Uniform Local Sales
and Use Tax Law (Part 1.5 (commencing with Section 7200)) and
the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251)), the exemption established by this section shall not
apply with respect to any tax levied by a county, city, or district
pursuant to, or in accordance with, either of those laws.

(2) Notwithstanding subdivision (a), the exemption established
by this section shall not apply with respect to any tax levied
pursuant to Section 6051.2, 6051.5, 6201.2, or 6201.5, pursuant
to Section 35 and subdivision (f) of Section 36 of Article XIII of
the California Constitution, or any tax levied pursuant to Section
6051 or 6201 that is deposited in the State Treasury to the credit
of the Local Revenue Fund 2011 pursuant to Section 6051.15 or
6201.15.

(d) This section shall remain in effect until July 1, 2015, and as
of that date is repealed, unless the state of emergency declared by
the Governor due to drought conditions on January 17, 2014, is
terminated before July 1, 2015, in accordance with Section 8629
of the Government Code. In that event, this section shall remain
in effect only until midnight on the first day of the first calendar
quarter commencing more than 60 days after the date of the
termination of the state of emergency, and as of that date is
repealed.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert begin insert

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

end insert

begin delete

SECTION 1.  

Section 402.5 of the Revenue and Taxation Code
is amended to read:

402.5.  

When valuing property by comparison with sales of
other properties, in order to be considered comparable, the sales
shall be sufficiently near in time to the valuation date, and the
properties sold shall be located sufficiently near the property being
valued, and shall be sufficiently alike in respect to character, size,
situation, usability, zoning, or other legal restriction as to use unless
rebutted pursuant to Section 402.1, to make it clear that the
properties sold and the properties being valued are comparable in
value and that the cash equivalent price realized for the properties
sold may fairly be considered as shedding light on the value of the
property being valued. “Near in time to the valuation date” does
not include any sale more than 90 days after the valuation date.

end delete