Bill Text: CA AB204 | 2011-2012 | Regular Session | Amended
Bill Title: Sales and use taxes: exemption: biomass electrical
Sponsorship: Partisan Bill (Republican 3)
Status: (Introduced - Dead) 2012-02-01 - Died pursuant to Art. IV, Sec. 10(c) of the Constitution. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB204 Detail]
Download: California-2011-AB204-Amended.html
BILL NUMBER: AB 204 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 24, 2011
AMENDED IN ASSEMBLY MARCH 8, 2011
AMENDED IN ASSEMBLY FEBRUARY 16, 2011
INTRODUCED BY Assembly Member Halderman
( Coauthor: Assembly Member
Bill Berryhill )
( Coauthor: Senator La Malfa
)
JANUARY 27, 2011
An act to add and repeal Section 6378.2 to
of the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 204, as amended, Halderman. Sales and use taxes: exemption:
biomass electrical energy production.
The Sales and Use Tax Law imposes 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. That
law provides various exemptions from those taxes.
This bill would , until January 1, 2017, exempt from
those taxes the sale of, and the storage, use, or other consumption
in this state of, equipment specified
tangible personal property purchased by a biomass energy
facility, as defined, for use in its biomass energy
production in this state to be used primarily for the
production of electrical energy from biomass materials, as defined,
and to maintain and repair that property .
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 in 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 specify that this exemption does not apply to
local sales and use taxes or ,
transactions and use taxes , and state taxes
from which revenues are deposited into the Local Public Safety Fund,
the Local Revenue Fund, or the Fiscal Recovery Fund.
This bill would take effect immediately as a tax levy, but its
operative date would depend on its effective date.
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 6378.2 is added to the Revenue and Taxation
Code, to read:
6378.2. (a) There are exempt from the taxes imposed by this part
the gross receipts from the sale of, and the storage, use, or other
consumption in this state of, equipment purchased by a
biomass energy facility for use in its biomass energy production in
this state. both of the following:
(1) Tangible personal property purchased for use by a biomass
energy facility to be used primarily for the production of electrical
energy from biomass materials.
(2) Tangible personal property purchased for use by a biomass
energy facility to be used primarily to maintain or repair any
property described in paragraph (1).
(b) The exemption provided by this section shall not apply to the
sale of, or the storage, use, or other consumption of, tangible
personal property that is used primarily in administration, general
management, or marketing.
(b)
(c) For purposes of this section, the following terms
have the following meanings:
(1) "Agricultural wastes and residues" include, but are not
limited to, animal wastes, remains and tallow, food wastes, recycled
cooking oils, and pure vegetable oils.
(2)
(1) "Biomass energy facility" means a facility that
primarily produces energy for distribution using biomass
materials.
(3)
(2) "Biomass materials" means any organic material not
derived from fossil fuels, including, but not limited to,
agricultural crops, agricultural wastes and residues, waste pallets,
crates, dunnage, manufacturing and construction wood wastes,
landscape and right-of-way tree trimmings, mill residues that result
from milling lumber, rangeland maintenance residues, biosolids,
sludge derived from organic matter, and wood and wood waste from
timbering operations.
(4)
(3) "Landscape and right-of-way tree trimmings" include
all solid waste materials that result from tree or vegetation
trimming or removal to establish or maintain a right-of-way on public
or private land for the provision of public utilities, including,
but not limited to, natural gas, water, electricity, and
telecommunications, for fuel hazard reduction resulting in fire
protection and prevention, or for the public's recreational use.
(4) "Primarily" means tangible personal property used 50 percent
or more of the time in an activity described in subdivision (a).
(5) "Production of electrical energy from biomass materials" means
the activity of producing electricity from a facility that has been
certified by the State Energy Resources Conservation and Development
Commission as being renewables portfolio standard (RPS) eligible.
(6) (A) "Tangible personal property" includes, but is not limited
to, all of the following:
(i) Machinery and equipment, including component parts.
(ii) All equipment or devices used or required to operate,
control, regulate, or maintain machinery, including, without
limitation, computers and electronic controllers, data processing
equipment, and computer software, together with all repair and
replacement parts, whether purchased separately or in conjunction
with a complete machine and regardless of whether the machine or
component parts are assembled by the biomass energy facility or
another party.
(B) "Tangible personal property" does not include furniture,
inventory, or equipment used to store products.
(c)
(d) (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.
(d)
(2) Notwithstanding subdivision (a), the exemption
provided by this section shall not apply with respect to any tax
levied pursuant to Section 6051.2, 6051.5, 6201.2, or 6201.5, or
pursuant to Section 35 of Article XIII of the California
Constitution.
(e) Notwithstanding subdivision (a), the exemption provided by
this section shall not apply to any sale or use of tangible personal
property which, within one year from the date of purchase, is removed
from California, converted from an exempt use under subdivision (a)
to some other use not qualifying for the exemption, or used in a
manner not qualifying for the exemption.
(f) If a purchaser certifies in writing to the seller that the
tangible personal property purchased without payment of the tax will
be used in a manner entitling the seller to regard the gross receipts
from the sale as exempt from the sales tax, and within one year from
the date of purchase, the purchaser (1) removes that property
outside California, (2) converts that property for use in a manner
not qualifying for the exemption, or (3) uses that property in a
manner not qualifying for the exemption, the purchaser shall be
liable for payment of sales tax, with applicable interest, as if the
purchaser were a retailer making a retail sale of the property at the
time the property is so removed, converted, or used, and the sales
price of the property to the purchaser shall be deemed the gross
receipts from that retail sale.
(g) This section shall remain in effect only until January 1,
2017, and as of that date is repealed.
SEC. 2. 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.
