Bill Text: CA AB1247 | 2015-2016 | Regular Session | Amended

California Assembly Bill 1247 (Prior Session Legislation)

Bill Title: Sales and use taxes: exemption: organic input material.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1247 Detail]

Download: California-2015-AB1247-Amended.html

BILL NUMBER: AB 1247	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 24, 2015

INTRODUCED BY   Assembly Member Irwin

                        FEBRUARY 27, 2015

   An act to  add and repeal Section 14502.2 of the Food and
Agricultural Code, relating to fertilizer.   amend
Section 6358 of the Revenue and Taxation Code, relation to taxation,
to take effect immediately, tax levy. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1247, as amended, Irwin.  Fertilizer: organic input
materials.   Sales and use taxes: exemption: organic
input material.  
   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.
That law provides various exemptions from those taxes, including an
exemption for fertilizer to be applied to land, the products of which
are to be used as food for human consumption or are to be sold in
the regular course of business.  
   This bill would additionally exempt from those taxes the gross
receipts from the sale in this state of, and the storage, use, or
other consumption in this state of, organic input material, as
defined, to be applied to land, the products of which are to be used
as food for human consumption or are to be sold in the regular course
of business.  
   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 generally
conforms to the Sales and Use Tax Law. Amendments to state sales and
use taxes are incorporated into these laws.  
   Section 2230 of the Revenue and Taxation Code provides that the
state will reimburse counties and cities for revenue losses caused by
the enactment of sales and use tax exemptions.  
   This bill would provide that, notwithstanding Section 2230 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse any local agencies for sales and use tax revenues
lost by them pursuant to this bill.  
   This bill would take effect immediately as a tax levy, but its
operative date would depend on its effective date.  
   Existing law requires the labeling and registration, as specified,
of fertilizing materials, including organic input materials. Organic
input materials are commercial fertilizers, agricultural minerals,
auxiliary soil and plant substances, specialty fertilizers, or soil
amendments, excluding pesticides, that are to be used in organic crop
and food production and that comply with specified national
standards.  
   Existing law requires all moneys, except for fines and penalties,
collected by the State Air Resources Board from the auction or sale
of allowances as part of a market-based compliance mechanism relative
to reduction of greenhouse gas emissions, to be deposited in the
Greenhouse Gas Reduction Fund.  
   This bill would require the Secretary of Food and Agriculture, on
or before June 30, 2016, to provide to the Legislature a plan to
expand the Department of Food and Agriculture's promotion of organic
input materials for the production of food and fiber. The bill would
express the Legislature's intent that the secretary's plan and the
department's promotion of organic input materials be funded, all or
in part, by the Greenhouse Gas Reduction Fund. The bill would make
findings and declarations regarding the ways in which agricultural
practices, including the application of fertilizer, remove carbon
dioxide from the atmosphere. 
   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 6358 of the   Revenue
and Taxation Code   is amended to read: 
   6358.  There are exempted from the taxes imposed by this part, the
gross receipts from the sale in this state of, and the storage, use,
or other consumption in this state of:
   (a) Any form of animal life the products of which ordinarily
constitute food for human consumption.
   (b) Feed for any form of animal life the products of which
ordinarily constitute food for human consumption or are to be sold in
the regular course of business.
   (c) Seeds and plants the products of which ordinarily constitute
food for human consumption or are to be sold in the regular course of
business.
   (d) Fertilizer to be applied to land the products of which are to
be used as food for human consumption or are to be sold in the
regular course of business. 
   (e) (1) Organic input material to be applied to land, the products
of which are to be used as food for human consumption or are to be
sold in the regular course of business.  
   (2) For purposes of this subdivision, "organic input material"
means auxiliary soil and plant substance, specialty fertilizer, or
soil amendment, excluding pesticides, that complies with the
requirements of the National Organic Program standards, as specified
in Part 205 (commencing with Section 205.1) of Subchapter M of
Chapter I of Subtitle B of Title 7 of the Code of Federal
Regulations.  
   (e) 
    (f)  On or after January 1, 1997, drugs or medicines,
including oxygen, the primary purpose of which is the prevention or
control of disease, that are administered to animal life the products
of which ordinarily constitute food for human consumption.
   SEC. 2.    Notwithstanding Section 2230 of the
Revenue and Taxation Code, no appropriation is made by this act and
the state shall not reimburse any local agency for any sales and use
tax revenues lost by it under this act. 
   SEC. 3.    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 90 days after the effective date of this act. 

  SECTION 1.    The Legislature finds and declares
both of the following:
   (a) A variety of agricultural practices that enhance carbon
storage or sequestration include conservation tillage, cover
cropping, crop rotation, and application of compost and fertilizer to
agricultural and range lands.
   (b) Improved soil and water quality, decreased nutrient loss,
reduced soil erosion, increased water conservation, and greater crop
production may result from increasing the amount of carbon dioxide
stored in agricultural lands, which in turn removes that carbon
dioxide from the atmosphere.  
  SEC. 2.    Section 14502.2 is added to the Food
and Agricultural Code, to read:
   14502.2.  (a) On or before June 30, 2016, the secretary shall
provide to the Legislature a plan to expand the department's
promotion of organic input materials for the production of food and
fiber.
   (b) It is the intent of the Legislature to fund all or part of
these requirements, including the secretary's plan and the department'
s promotion of organic input materials, with the Greenhouse Gas
Reduction Fund.
   (c) (1) A report to be submitted pursuant to subdivision (a) shall
be submitted in compliance with Section 9795 of the Government Code.

   (2) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on June 30, 2020.