Bill Text: CA AB1077 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Sales and use taxes: vehicle license fee: alternative fuel motor vehicles.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1077 Detail]

Download: California-2013-AB1077-Amended.html

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BILL NUMBER: AB 1077	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 6, 2013
	AMENDED IN ASSEMBLY  APRIL 2, 2013

INTRODUCED BY   Assembly  Member  
Muratsuchi   Members   Muratsuchi  
and Ting 
   (Coauthors: Assembly Members Stone and Williams)

                        FEBRUARY 22, 2013

   An act to add and repeal Sections  6011.3, 6012.4,
  6378.5  and 10759.5 of the Revenue and Taxation
Code, relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1077, as amended, Muratsuchi. Sales and use taxes: vehicle
license fee: exclusion: alternative fuel motor vehicles. 
   Existing laws impose 
    The Sales and Use Tax Law imposes  state sales and use
taxes 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, measured by the sales price.  The
Sales and Use Tax Law defines the terms "gross receipts" and "sales
price."   Existing law also provides for specific
exemptions from these taxes.  
   This bill would, on and after January 1, 2014, and before January
1, 2022, exclude from the terms "gross receipts" and "sales price,"
in the sale of a new alternative fuel motor vehicle, any amount
allowed as a credit under a specified provision of the Internal
Revenue Code, relating to new qualified plug-in electric drive motor
vehicles, and any amounts received, awarded, or allowed pursuant to a
state incentive program for the purchase or lease of an alternative
fuel vehicle.  
   This bill would, on and after January 1, 2014, and before January
1, 2022, exempt from the taxes imposed by the Sales and Use Tax Law
that portion of the gross receipts from the sale of, and the storage,
use, or other consumption of, a qualified motor vehicle, as defined,
that is the greater of (1) the sum of the amount of any credit under
a specified provision of the Internal Revenue Code relating to new
qualified plug-in electric drive motor vehicles, and any amount
received, awarded, or allowed pursuant to a state incentive program
for the purchase or lease of an alternative fuel vehicle; or (2) the
value of a motor vehicle that is traded in for the motor vehicle that
qualifies for a credit or incentive amount under those programs,
where the value of the trade-in motor vehicle is separately stated on
the new motor vehicle invoice or bill of sale or similar document
provided to the purchaser. 
   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
accordance 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.
   This bill would specify that this exclusion does not apply to
local sales and use taxes and transactions and use taxes  , or to
certain state sales and use tax rates  .
   The Vehicle License Fee Law provides that the annual amount of the
license fee for any vehicle is 0.65% of the market value of the
vehicle, as specified. That law provides for the determination of the
market value of any vehicle, for reclassification to increase the
market value of a vehicle, and for the exemption of certain vehicles
from the imposition of the license fee.
   This bill would, on and after January 1, 2014, and before January
1, 2022, for purposes of determining the vehicle license fee, exempt
from the determination of market value of a new motor vehicle
propelled by alternative fuels any amount allowed as a credit under a
specified provision of the Internal Revenue Code, relating to new
qualified plug-in electric drive motor vehicles, and any amounts
received, awarded, or allowed pursuant to a state incentive program
for the purchase or lease of an alternative fuel vehicle.
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 6378.5 is added to the 
 Revenue and Taxation Code   , to read:  
   6378.5.  (a) There are exempted from the taxes imposed by this
part that portion of the gross receipts, from the sale of, and the
storage, use, or other consumption in this state of, a qualified
motor vehicle, that is equal to the greater of the following:
   (1) The sum of both of the following:
   (A) The amount of any new Qualified Plug-in Electric Drive Motor
Vehicle credit received with respect to the qualified motor vehicle
under Section 30D of the Internal Revenue Code.
   (B) The amount of any state incentive amount received, awarded, or
allowed with respect to the qualified motor vehicle under the Clean
Vehicle Rebate Project, the California Hybrid and Zero-Emission Truck
and Bus Voucher Incentive Project, or the On-Road Heavy-Duty Voucher
Incentive Program within the Carl Moyer Program.
   (2) The trade-in value of a motor vehicle that is traded in for
the qualified motor vehicle where the value of the trade-in motor
vehicle is separately stated on the new motor vehicle invoice or bill
of sale or similar document provided to the purchaser.
   (b) For purposes of this section, "qualified motor vehicle" means
a motor vehicle that receives, or is awarded or allowed, either or
both of the following:
   (1) A credit for a Qualified Plug-in Electric Drive Motor Vehicle
under Section 30D of the Internal Revenue Code.
   (2) A state incentive amount under the Clean Vehicle Rebate
Project, the California Hybrid and Zero-Emission Truck and Bus
Voucher Incentive Project, or the On-Road Heavy-Duty Voucher
Incentive Program within the Carl Moyer Program.
   (c) (1) Notwithstanding any provision of the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section
7200)) or 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) The exemption established by this section shall not apply with
respect to any tax levied pursuant to Section 6051.2 or 6201.2,
pursuant to Section 35 of Article XIII of the California
Constitution.
   (d) This section shall become operative on January 1, 2014, and
shall remain in effect only until January 1, 2022.  
  SECTION 1.    Legislature finds and declares:
   (a) There is a wide disparity in fees levied on owners of light-,
medium-, and heavy-duty vehicles operated on alternative fuels when
compared to those same taxes and fees levied on owners of comparable
gasoline and diesel fuel vehicles.
   (b) In some cases, the fees on alternative fuel vehicles are more
than twice as much as those for conventional fuel vehicles.
   (c) The disparity in fees exists even though the alternative fuel
vehicle may look identical to the conventional fuel vehicle and
provide the same or lesser utility to the individual owner.
   (d) The existing California vehicle license fee on motor vehicles
that operate on alternative fuels is higher than for comparable
conventional fuel vehicles because alternative fuel vehicles
generally have higher sales prices. The higher sales prices are
largely due to the fact that these vehicles are produced in extremely
low volumes (many assembled by hand), such that their production has
not achieved the economies of scale that would significantly reduce
their cost; and they use many new advanced materials and technologies
that also have not yet achieved economies of scale, and therefore
have a temporarily greater cost to consumers.
   (e) The higher sales prices for these alternative fuel vehicles
are expected to be a short-term, temporary situation because prices
are expected to decline significantly to competitive levels as volume
increases. If this does not occur, these vehicles may never be
competitive, and automakers would likely withdraw them from the
market. The current vehicle license fee does not reflect these
temporary, short-term pricing situations. Instead it intrinsically,
but incorrectly, assumes that these short-term higher prices reflect
true long-term market value of the vehicles.
   (f) Alternative fuel vehicles provide benefits to California
citizens that are external to, or not reflected in, their cost to the
purchaser. These benefits include: increasing our national
independence from foreign energy sources; providing more
transportation choices for consumers and businesses, thus reducing
our economic vulnerability to sudden fuel price increases caused by
external or internal events; reducing air pollutants, climate change
pollutants, and toxic emissions from mobile sources; and reducing
future pressures for additional environmental controls on existing
and new businesses and industries in California.
   (g) It is the public policy of the State of California, the
federal government, and many local governments, to encourage the
development and use of alternative fuel vehicles, for the purpose of
providing the benefits described above to all California citizens.
   (h) Existing vehicle license fee calculations, as they relate to
the determination of market value of alternative fuel vehicles, do
not reflect the critical short-term pricing issues described above,
nor the external benefits that accrue to all California citizens.
Additionally, these existing fees act as a significant disincentive
to potential purchasers of alternative fuel vehicles, and as such,
are contrary to existing public policies at all levels of government.

   (i) It is the intent of the Legislature to equalize the vehicle
license fee between alternative fuel vehicles and conventional fuel
vehicles for a period of eight years, beginning January 1, 2014, and
ending December 31, 2021.  
  SEC. 2.    Section 6011.3 is added to the Revenue
and Taxation Code, to read:
   6011.3.  (a) Notwithstanding Section 6011 or any other law, on and
after January 1, 2014, and before January 1, 2022, "sales price"
from the purchase of a new alternative fuel motor vehicle shall not
include any amount allowed as a credit under Section 30D of the
Internal Revenue Code, relating to new qualified plug-in electric
drive motor vehicles, and any amounts received, awarded, or allowed
pursuant to a state incentive program for the purchase or lease of an
alternative fuel vehicle, including, but not limited to, state
income tax credits, the Clean Vehicle Rebate Project, the California
Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, and
the On-Road Heavy-Duty Voucher Incentive Program under the Carl
Moyer Program.
   (b) For purposes of this section, all of the following shall
apply:
   (1) "Alternative fuel vehicle" means a motor vehicle subject to
registration under the Vehicle Code that operates some or all of the
time on a fuel other than gasoline or diesel.
   (2) "Motor vehicle" means "motor vehicle" as defined by Section
415 of the Vehicle Code.
   (c) The cost of the vehicle after deducting the amounts described
in subdivision (a) shall be stated in the contract for sale or lease
with the purchaser, and shall be reported to the board quarterly.
   (d) Notwithstanding any provision of the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200))
or the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251)), the exclusion 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.
   (e) This section shall be repealed on January 1, 2022. 

  SEC. 3.    Section 6012.4 is added to the Revenue
and Taxation Code, to read:
   6012.4.  (a) Notwithstanding Section 6012 or any other law, on and
after January 1, 2014, and before January 1, 2022, "gross receipts"
from the sale of a new alternative fuel motor vehicle shall not
include any amount allowed as a credit under Section 30D of the
Internal Revenue Code, relating to new qualified plug-in electric
drive motor vehicles, and any amounts received, awarded, or allowed
pursuant to a state incentive program for the purchase or lease of an
alternative fuel vehicle, including, but not limited to, state
income tax credits, the Clean Vehicle Rebate Project, the California
Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, and
the On-Road Heavy-Duty Voucher Incentive Program under the Carl
Moyer Program.
   (b) For purposes of this section, all of the following shall
apply:
   (1) "Alternative fuel vehicle" means a motor vehicle subject to
registration under the Vehicle Code that operates some or all of the
time on a fuel other than gasoline or diesel.
   (2) "Motor vehicle" means "motor vehicle" as defined by Section
415 of the Vehicle Code.
   (c) The cost of the vehicle after deducting the amounts described
in subdivision (a) shall be stated in the contract for sale or lease
with the purchaser, and shall be reported to the board quarterly.
   (d) Notwithstanding any provision of the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200))
or the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251)), the exclusion 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.
   (e) This section shall be repealed on January 1, 2022. 
   SEC. 4.   SEC. 2.   Section 10759.5 is
added to the Revenue and Taxation Code, to read:
   10759.5.  (a) For purposes of determining the vehicle license fee
imposed by this part, there are exempted from the determination of
market value of a new motor vehicle propelled by alternative fuels
 , any   the sum of the  amount allowed as
a credit under Section 30D of the Internal Revenue Code, relating to
new qualified plug-in electric drive motor vehicles, and any 
amounts   state incentive amount  received,
awarded, or allowed  pursuant to a state incentive program
for the purchase or lease of an alternative fuel vehicle, including,
but not limited to, state income tax credits,   under
 the Clean Vehicle Rebate Project, the California Hybrid and
Zero-Emission Truck and Bus Voucher Incentive Project,  and
  or  the On-Road Heavy-Duty Voucher Incentive
Program  under   within  the Carl Moyer
Program.  This exemption shall apply to the subsequent
payments of the vehicle license fee.  
   (b) For purposes of this section, "motor vehicle propelled by
alternative fuels" means a motor vehicle that operates some or all of
the time on a fuel other than gasoline or diesel.  

   (c) 
   (b)  This section shall become operative on January 1,
2014, and shall remain in effect only until January 1, 2022, and as
of that date is repealed.
   SEC. 5.   SEC. 3.   This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.