Bill Text: CA AB777 | 2013-2014 | Regular Session | Chaptered
Bill Title: Taxes: exemption: space flight property.
Spectrum: Slight Partisan Bill (Democrat 18-9)
Status: (Passed) 2014-04-29 - Chaptered by Secretary of State - Chapter 13, Statutes of 2014. [AB777 Detail]
Download: California-2013-AB777-Chaptered.html
BILL NUMBER: AB 777 CHAPTERED
BILL TEXT
CHAPTER 13
FILED WITH SECRETARY OF STATE APRIL 29, 2014
APPROVED BY GOVERNOR APRIL 29, 2014
PASSED THE SENATE APRIL 10, 2014
PASSED THE ASSEMBLY APRIL 24, 2014
AMENDED IN SENATE FEBRUARY 19, 2014
AMENDED IN ASSEMBLY AUGUST 26, 2013
AMENDED IN ASSEMBLY MAY 21, 2013
AMENDED IN ASSEMBLY APRIL 16, 2013
AMENDED IN ASSEMBLY MARCH 19, 2013
INTRODUCED BY Assembly Member Muratsuchi
(Principal coauthors: Assembly Members Bradford and Hall)
(Coauthors: Assembly Members Achadjian, Bloom, Bocanegra, Ian
Calderon, Chau, Dahle, Daly, Fox, Garcia, Gomez, Gorell, Hagman,
Harkey, Holden, Levine, Medina, V. Manuel Pérez, Rendon, Waldron, and
Wilk)
(Coauthors: Senators Emmerson, Knight, Roth, and Wright)
FEBRUARY 21, 2013
An act to add and repeal Section 242 of the Revenue and Taxation
Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 777, 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, 2014, lien date to, and including, the January 1,
2024, 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 242 is added to the Revenue and Taxation Code,
to read:
242. (a) There is exempted from the taxes imposed by this part
qualified property for use in space flight.
(b) For purposes of this section:
(1) "Qualified property" means any of the following:
(A) Tangible personal property, whether raw materials, work in
process or finished goods, that has, or upon manufacture, assembly,
or installation has, space flight capacity, including, but not
limited to, an orbital space facility, space propulsion system, space
vehicle, launch vehicle, satellite, or space station of any kind,
and any component thereof, regardless of whether that property is to
be ultimately returned to this state.
(B) Fuel of a quality that is not adaptable for use in ordinary
motor vehicles, but is produced, sold, and used exclusively for space
flight.
(2) "Space flight" means any flight designed for suborbital,
orbital, or interplanetary travel by a space vehicle, satellite,
space facility, or space station of any kind.
(c) The exemption established by this section shall not be denied
by reason of failure, postponement, or cancellation of a launch of a
space vehicle, satellite, space facility, or space station of any
kind, or the destruction of any launch vehicle or any component
thereof, but the exemption shall not apply to any material that is
not intended to be launched into space.
(d) This section shall be operative from the January 1, 2014, lien
date to, and including, the January 1, 2024, lien date, and is
inoperative for any lien date thereafter.
(e) A taxpayer shall provide, upon request of the assessor,
evidence that the qualified property exempted from the taxes imposed
by this part pursuant to this section has been or will be used as
described in subparagraph (A) of paragraph (1) of subdivision (b).
(f) The exemption provided by this section from the taxes imposed
by this part shall be limited to taxpayers that have a primary
business purpose in space flight activities.
(g) This section shall remain in effect only until July 1, 2025,
and as of that date is repealed.
SEC. 2. The Legislature finds and declares that this act fulfills
a statewide public purpose because it promotes businesses within the
state that consistently expand and provide secure employment in a
much needed industry.
SEC. 3. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
SEC. 4. Notwithstanding Section 2229 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse any local agency for any property tax revenues lost by it
pursuant to this act.
SEC. 5. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
SEC. 6. An inference shall not be drawn from this act with respect
to whether space flight property qualifies as "business inventories"
as defined or described by Sections 129 and 219 of the Revenue and
Taxation Code, or Board of Equalization Property Tax Rule 133.
