Bill Text: CA AB1941 | 2011-2012 | Regular Session | Amended
Bill Title: Taxation: qualified heavy equipment.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-05-14 - In committee: Set, first hearing. Referred to REV. & TAX. suspense file. In committee: Set, first hearing. Held under submission. [AB1941 Detail]
Download: California-2011-AB1941-Amended.html
BILL NUMBER: AB 1941 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Ma
FEBRUARY 22, 2012
An act to amend Section 6093 of 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 1941, as amended, Ma. Sales and use tax.
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, 2013, impose a tax on every qualified lessee,
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. 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 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.
By expanding the application of the Fee Collection Procedures Law,
the violation of which is a crime, this bill would impose a
state-mandate 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.
The Sales and Use Tax Law presumes that all gross receipts are
subject to tax until the contrary is established. This law relieves a
seller from liability for sales tax if the seller in good faith
takes a resale certificate from a purchaser holding a seller's
permit, and the resale certificate is signed and completed as
specified.
This bill would make nonsubstantive, technical changes to this
provision.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no 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) "Local entity" means a city, county, and special district.
(b) "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 self-propelled vehicle that is not designed to be driven on
the highway.
(2) Industrial electrical generation equipment.
(3) Industrial lift equipment.
(4) Industrial material equipment.
(c) "Leasing or renting" means a short-term lease or rental for a
period of 365 days or less.
(d) "Qualified lessee" means a lessee that leases or rents
qualified heavy equipment from a qualified lessor.
(e) "Qualified lessor" means a lessor that satisfies all of the
following:
(1) The principal business of the lessor 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) Is engaged in a line of business described in NAICS Industry
532412 of the North American Industry Classification System published
by the United States Office of Management and Budget, 2012 edition.
5501. On or after January 1, 2013, there is hereby imposed a tax
on every qualified lessee 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 of qualified heavy
equipment.
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.
5503. The State Board of Equalization 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 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.
(b) The State Board of Equalization 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, 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 of the act that added this
subdivision.
5509. For the 2013-14 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.
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.
SECTION 1. Section 6093 of the Revenue and
Taxation Code is amended to read:
6093. The certificate shall be signed by and bear the name and
address of the purchaser, indicate the number of the permit issued to
the purchaser, and indicate the general character of the tangible
personal property sold by the purchaser in the regular course of
business. The certificate shall be substantially in such form as the
board may prescribe.
