AB 777, as amended, Muratsuchi. Taxes: exemption: space flight property.
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.
Pursuant to this constitutional authorization, this bill would, for the January 1,begin delete 2013,end deletebegin insert 2014,end insert lien date to, and including, the January 1,begin delete 2023,end deletebegin insert 2024,end insert
lien date, exempt qualified property, as defined, for use in space flight.
By imposing new duties upon local tax officials with respect to the personal property tax exemption described above, this bill would impose a state-mandated local program.
This bill would make a legislative finding and declaration as to the public purpose served by the bill.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Section 2229 of the Revenue and Taxation Code requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
This bill would take effect immediately as a tax levy.
Vote: 2⁄3. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 242 is added to the Revenue and Taxation
2Code, to read:
(a) There is exempted from the taxes imposed by this
4part qualified property for use in space flight.
5(b) For purposes of this section:
6(1) “Qualified property” means any of the following:
7(A) Tangible personal property, whether raw materials, work
8in process or finished goods, that has, or upon manufacture,
9assembly, or installation has, space flight capacity, including, but
10not limited to, an orbital space facility, space propulsion system,
11space vehicle, launch vehicle, satellite, or space station of any
P3 1kind, and any component thereof, regardless
of whether that
2property is to be ultimately returned to this state.
3(B) Tangible personal property to be placed or used aboard any
4facility, system, vehicle, satellite, or station described in
5subparagraph (A), regardless of whether that property is to be
6ultimately returned to this state.
7(C)
end delete
8begin insert(B)end insert Fuel of a quality that is not adaptable for use in ordinary
9motor vehicles, but is produced, sold, and used exclusively for
10space flight.
11(2) “Space flight” means any flight designed for suborbital,
12orbital, or interplanetary travel by a space vehicle, satellite, space
13facility, or space station of any kind.
14(c) The exemption established by this section shall not be denied
15by reason of failure, postponement, or cancellation of a launch of
16a space vehicle, satellite, space facility, or space station of any
17
kind, or the destruction of any launch vehicle or any component
18thereof, but the exemption shall not apply to any material that is
19not intended to be launched into space.
20(d) This section shall be operative from the January 1,begin delete 2013,end delete
21begin insert 2014,end insert lien date to, and including, the January 1,begin delete 2023,end deletebegin insert 2024,end insert lien
22date, and is inoperative for any lien date thereafter.
23(e) A taxpayer shall provide, upon request of the assessor,
24evidence that the
qualified property exempted from the taxes
25imposed by this part pursuant to this section has been or will be
26used as described in subparagraph (A)begin delete or (B)end delete of paragraph (1) of
27subdivision (b).
28(f) The exemption provided by this section from the taxes
29imposed by this part shall be limited to taxpayers that have a
30primary business purpose in space flight activities.
31(g) This section shall remain in effect only until
July 1,begin delete 2024,end delete
32begin insert 2025,end insert and as of that date is repealed.
The Legislature finds and declares that this act fulfills
34a statewide public purpose because it promotes businesses within
35the state that consistently expand and provide secure employment
36in a much needed industry.
If the Commission on State Mandates determines
38that this act contains costs mandated by the state, reimbursement
39to local agencies and school districts for those costs shall be made
P4 1pursuant to Part 7 (commencing with Section 17500) of Division
24 of Title 2 of the Government Code.
Notwithstanding Section 2229 of the Revenue and
4Taxation Code, no appropriation is made by this act and the state
5shall not reimburse any local agency for any property tax revenues
6lost by it pursuant to this act.
This act provides for a tax levy within the meaning
8of Article IV of the Constitution and shall go into immediate effect.
An inference shall not be drawn from this act with
10respect to whether space flight property qualifies as “business
11inventories” as defined or described by Sections 129 and 219 of
12the Revenue and Taxation Code, or Board of Equalization Property
13Tax Rule 133.
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