Bill Text: CA AB2262 | 2013-2014 | Regular Session | Amended

California Assembly Bill 2262 (Prior Session Legislation)

Bill Title: Private railroad car tax.

Spectrum: Moderate Partisan Bill (Democrat 4-1)

Status: (Engrossed - Dead) 2014-08-14 - In committee: Held under submission. [AB2262 Detail]

Download: California-2013-AB2262-Amended.html

BILL NUMBER: AB 2262	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 1, 2014

INTRODUCED BY   Assembly Member Frazier
    (   Coauthors:   Assembly Members 
 Bonta,   Brown,   Harkey,   and
Rodriguez   ) 

                        FEBRUARY 21, 2014

   An act to amend  Section   Sections 11292 and
 11293 of  , and to repeal Sections 11206 and 11294 of,
 the Revenue and Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2262, as amended, Frazier. Private railroad car tax.
   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. Under the Private Railroad Car Tax Law, the State Board of
Equalization assesses and taxes private railroad cars operated upon
railroads in this state by class based on the owner's acquisition
cost, less depreciation, as provided. In making an assessment, the
board is required to determine the average number of each class of
private railroad cars physically present in the state in the calendar
year immediately preceding the fiscal year in which the tax is
imposed upon the basis of car days. 
   This bill would instead require the board, in making the
assessment, to determine the physical presence of private railroad
cars in the state in the calendar year immediately preceding the
fiscal year in which the tax is imposed upon the basis of mileage.
 
   Existing law also requires the board, in making the above
assessment, to value the cars by class based on the owner's
acquisition cost, less depreciation, and sets forth the manner in
which depreciation is calculated for each class of cars, as
specified.  
   This bill would instead require the board, in making the
assessment, to value the cars based on the owner's acquisition cost,
including additions and betterments, less depreciation, and would
revise the manner in which the depreciation is calculated, as
specified.  
   Existing law requires the board to exclude from the California
factor car mileage, car days, or other data that occurs while cars
are not qualified for revenue service and are in a repair facility in
the state, as specified. Existing law defines the term "class of
private railroad cars" for these purposes.  
   This bill would delete the definition of the term "class of
private railroad cars" and would eliminate the requirement that the
board exclude from the California factor car mileage, car days, or
other data that occurs while cars are not qualified for revenue
service and are in a repair facility in the state.  
   This bill would make a technical change to those provisions.

   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee:  no   yes  .
State-mandated local program: no.


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

   SECTION   1.    Section 11206 of the 
 Revenue and Taxation Code   is repealed.  

   11206.  "Class of private railroad cars" means the Association of
American Railroad's, or successor organization's, one letter alpha
component of its car type codes as contained in that organization's
Exhibit D of the UMLER specification manual or successor exhibit.

   SEC. 2.    Section 11292 of the   Revenue
and Taxation Code   is amended to read: 
   11292.  In making the assessment, the board shall value the cars
 by class  based on the owner's acquisition cost,
 including additions and betterments,  less depreciation.
The depreciation shall be computed for these enumerated Association
of American Railroad's, or successor organization's, car type groups
on a straight-line basis with the indicated depreciable life
schedules with a maximum of 80 percent depreciation allowed.
   (a) Stack cars (alpha S): 22 years  minus the age at
acquisition  .
   (b) Lightweight, low profile intermodal cars (alpha Q): 22 years
 minus the age at acquisition  .
   (c) Flat cars (alpha F): 22 years  minus the age at
acquisition  .
   (d) Conventional intermodal cars (alpha P): 22 years 
minus the age at acquisition  .
   (e) Vehicular flat cars (alpha V): 22 years  minus the age
at acquisition  .
   (f) All other cars (all other alphas): 25 years  minus the
age at acquisition  .
   (g) Betterments: the remaining depreciable life of the car to
which the betterment is applied.
   Acquisition cost is defined as the expenditures required to be
capitalized by generally accepted accounting principles.
   SECTION 1.   SEC. 3.   Section 11293 of
the Revenue and Taxation Code is amended to read:
   11293.  In making an assessment, the board shall determine the
 average number of each class   physical
presence  of private railroad cars  physically present
 in this state in the calendar year immediately preceding
the fiscal year in which the tax is imposed upon the basis of
 car days   mileage  . The board shall
multiply the  average number   ratio  so
determined by the value  of a car of that class  as
determined under Section 11292 and use the product for the assessment
of the cars.
   SEC. 4.   Section 11294   of the  
Revenue and Taxation Code   is repealed.  
   11294.  In determining the averages required in Section 11293, the
board shall exclude from the California factor car mileage, car days
or such other data which occurs while cars are not qualified for
revenue service and are in a repair facility in this state requiring
and undergoing or awaiting remodeling, overhaul, renovation,
conversion or repair which necessitates total labor in excess of 10
man-hours.
   Car days excluded pursuant to this section shall not exceed 90
days per car unless the claimant provides substantiation of the
necessity for the additional days in such form as prescribed by the
board.