Bill Text: CA AB1055 | 2013-2014 | Regular Session | Amended
Bill Title: Taxation: qualified heavy equipment.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1055 Detail]
Download: California-2013-AB1055-Amended.html
BILL NUMBER: AB 1055 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 2, 2013
AMENDED IN ASSEMBLY MARCH 21, 2013
INTRODUCED BY Assembly Member Pan
FEBRUARY 22, 2013
An act to add Part 11 (commencing with Section 5500) to Division 1
of the Revenue and Taxation Code, relating to taxation, to take
effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1055, as amended, Pan. Taxation: qualified heavy equipment.
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.
This bill would, pursuant to this constitutional authorization,
on and after January 1, 2014, impose a tax on
every qualified lessee rentee , as
defined, of qualified heavy equipment, as defined, for the privilege
of leasing or renting qualified heavy equipment in
this state at the rate of 1.25% ____%
of the gross receipts of the qualified lessee
rental price from the renting of qualified heavy equipment. This
bill would require a qualified renter to collect the tax from the
qualified rentee at the time of rental, as provided . This bill
would provide that this tax shall be in lieu of any personal
property tax on qualified heavy equipment. This bill would require
the tax to be administered by the State Board of Equalization and to
be collected pursuant to the procedures set forth in the Fee
Collection Procedures Law. This bill would require all revenues,
interest, penalties, and other amounts , less refunds and the
board's costs of administration, derived from the imposition of
the tax to be deposited in the Heavy Equipment Revenue Fund in the
State Treasury, established by this bill. This bill would require all
revenues in the fund, upon appropriation by the Legislature, to be
used to reimburse local entities for their loss of property tax
revenues resulting from this bill. This bill would allow the
Director of Finance to authorize a loan from the General Fund to the
board to meet cash needs resulting from the delay in receipt of
revenues into the Heavy Equipment Revenue Fund, provided the loan is
repaid from the Heavy Equipment Revenue Fund, as provided.
By expanding the application of the Fee Collection Procedures Law,
the violation of which is a crime, this bill would impose a
state-mandated local program.
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 no reimbursement is required by this
act for a specified reason.
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.
This bill would take effect immediately as a tax levy, but its
operative date would depend on its effective date.
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 1. Part 11 (commencing with Section 5500) is added to
Division 1 of the Revenue and Taxation Code, to read:
PART 11. Taxation of Qualified Heavy Equipment
5500. For purposes of this part, all of the following definitions
shall apply:
(a) "Rental price" means the total amount of the charge for
renting the qualified rental equipment, excluding any separately
stated charges that are not rental charges, including but not limited
to, separately stated charges for delivery and pickup fees, damage
waivers, environmental mitigation fees, or use taxes.
(a)
(b) "Local entity" means a city, county, and special
district.
(b)
(c) (1) "Qualified heavy
equipment" means construction, earthmoving, or industrial equipment
that is mobile, including attachments for the equipment, including,
but not limited to, all of the following:
(1)
(A) A self-propelled vehicle that is not designed to be
driven on the highway.
(2)
(B) Industrial electrical generation equipment.
(3)
(C) Industrial lift equipment.
(4)
(D) Industrial material equipment.
(E) Equipment used in shoring, shielding, and ground trenching.
(2) Qualified heavy equipment is mobile if the qualified heavy
equipment is not intended to be permanently affixed to real property
for the purpose of using the qualified heavy equipment for its
intended use. Qualified heavy equipment is mobile if it is intended
to be moved among worksites as needed.
(c) "Leasing or renting" means a short-term lease or rental for a
period of 365 days or less.
(d) "Qualified lessee" rentee "
means a lessee rentee that
leases or rents qualified heavy equipment from a
qualified lessor renter .
(e) "Qualified lessor" renter "
means a lessor renter that
satisfies all of the following:
(1) The principal business of the lessor
renter is the short-term lease or rental of
qualified heavy equipment.
(2) ____ percent of the total gross receipts of the qualified
lessor's business is derived from the lease or rental of qualified
heavy equipment.
(3)
(2) Is engaged in a line of business described in
NAICS Industry Code 532412 of the North
American Industry Classification System published by the United
States Office of Management and Budget, 2012 edition.
(f) "Renting" or "rent" means a rental for a period of less than
365 days or for an undefined period.
5501. On or after January 1, 2014, there
(a) There is hereby imposed a
tax on every qualified lessee rentee of
qualified heavy equipment for the privilege of leasing or
renting qualified heavy equipment in this state at the rate
of 1.25 ____ percent of the
gross receipts of the qualified lessee from the lease or
rental price from the renting of qualified heavy
equipment.
(b) (1) The qualified renter shall collect the tax from the
qualified rentee at the time of rental and remit the tax to the board
as required by this part. Any amount unreturned to the qualified
rentee who paid an amount in excess of the tax, but was collected
from the qualified rentee under the representation by the qualified
renter that it was owed as tax, constitutes debts owed by the
qualified renter to this state.
(2) Every qualified rentee who rents qualified heavy equipment in
this state is liable for the tax until it has been paid to this
state, except that payment to a qualified renter relieves the
qualified rentee from further liability for the tax. Any tax
collected from a qualified rentee that has not been remitted to the
board shall be a debt owed to the state by the qualified renter
required to collect and remit the tax. Nothing in this part shall
impose any obligation upon a qualified renter to take any legal
action to enforce the collection of the tax imposed by this part.
(c) The qualified renter shall separately state the amount of the
tax imposed under this section on any contract, receipt, invoice, or
other similar document given by the qualified renter to the qualified
rentee at the time of rental.
(d) The board shall administer and collect the tax imposed by this
part pursuant to the Fee Collection Procedures Law (Part 30
(commencing with Section 55001) of Division 2). For purposes of this
part, the references in the Fee Collection Procedures Law to "fee"
shall include the tax imposed by this part, and references to
"feepayer" shall include a person liable for the payment of the taxes
imposed by this part and collected pursuant to that law.
5502. The State Board of Equalization shall administer and
collect the tax imposed by this part pursuant to the Fee Collection
Procedures Law (Part 30 (commencing with Section 55001) of Division
2). For purposes of this part, the references in the Fee Collection
Procedures Law to "fee" shall include the tax imposed by this part
and references to "feepayer" shall include a person required to pay
the tax imposed by this part.
5502. Every qualified renter required to collect the tax imposed
under this part shall register with the board. Every application for
registration shall be made upon a form prescribed by the board and
shall set forth the name under which the applicant transacts or
intends to transact business, the location of its place or places of
business, and other information as the board may require. An
application for an account shall be authenticated in a form or
pursuant to methods as may be prescribed by the board.
5503. The State Board of Equalization
board may prescribe, adopt, and enforce regulations relating to
the administration and enforcement of this part, including, but not
limited to, collections, reporting, refunds, and appeals.
5504. The taxes imposed by this part are due and payable to the
State Board of Equalization board
quarterly on or before the last day of the month next succeeding each
quarterly period.
5506. (a) On or before the last day of the month following each
quarterly period of three months, a return for the preceding
quarterly period shall be filed using electronic media with the
State Board of Equalization board .
(b) The State Board of Equalization board
may prescribe those forms and reporting requirements as are
necessary to implement the tax.
(c) Returns shall be authenticated in a form or pursuant to
methods as may be prescribed by the board.
5507. The qualified lessor shall collect the tax imposed pursuant
to this part on each lease or rental of qualified heavy equipment
and remit the tax to State Board of Equalization as required by this
part.
5508. (a) All revenues, interest, penalties, and other amounts
collected pursuant to this part, less refunds and the board's
costs of administration , shall be deposited in the Heavy
Equipment Revenue Fund, which is hereby established in the State
Treasury.
(b) Upon appropriation by the Legislature, revenues in the fund
shall be used to reimburse local entities for their loss of property
tax revenues resulting from the act that added this subdivision.
(c) Notwithstanding any other law, the Director of Finance may
authorize a loan from the General Fund to the board to meet cash
needs resulting from the delay in receipt of revenues into the Heavy
Equipment Revenue Fund, provided the loan is repaid from the Heavy
Equipment Revenue Fund by December 31 of the second fiscal year
following that in which the loan was authorized. Interest charges
shall be waived pursuant to subdivision (e) of Section 16314 of the
Government Code. The Director of Finance shall notify the Chairperson
of the Joint Legislative Budget Committee and the chairperson of the
committees in each house of the Legislature that consider
appropriations no later than 30 days after authorizing the loan.
5509. (a) For the 2014-15 fiscal year and
for each fiscal year thereafter, the tax imposed pursuant to this
part shall be in lieu of any property tax on qualified heavy
equipment subject to taxation pursuant to this part.
(b) Qualified heavy equipment of a business that is not for rent
shall remain subject to any applicable property taxes.
5510. This part shall not apply to any rental contract for
qualified heavy equipment that was entered into before the operative
date of the act adding this section.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
SEC. 3. 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. 4. This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.
SEC. 4. This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect. However, the provisions of this act shall become
operative on the first day of the first calendar quarter commencing
more than 180 days after the effective date of this act.
