Bill Text: CA AB291 | 2023-2024 | Regular Session | Introduced
Bill Title: Sales and Use Tax: exemptions: trucks for use in interstate or out-of-state commerce.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2024-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB291 Detail]
Download: California-2023-AB291-Introduced.html
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 291
Introduced by Assembly Member Jim Patterson |
January 25, 2023 |
An act to amend Section 6388.5 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 291, as introduced, Jim Patterson.
Sales and Use Tax: exemptions: trucks for use in interstate or out-of-state commerce.
Existing state 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. The Sales and Use Tax Law provides various exemptions from those taxes, including, until January 1, 2024, an exemption for the sale of, or the storage, use, or other consumption of, a new, used, or remanufactured truck with an unladen weight of 6,000 pounds or more that is purchased for use without this state and is delivered to the purchaser within this state, and the purchaser drives or moves the vehicle to any point outside this state within 30 or 75 days, as applicable, from and after the date of delivery, if the purchaser furnishes certain documents to
the manufacturer or remanufacturer.
This bill would extend that exemption until January 1, 2029.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
The bill would make findings detailing the goal of the above-described tax expenditure, performance indicators for determining whether the tax expenditure meets the goal, and data collection requirements.
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 laws authorize 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 the Sales and Use Tax Law are automatically incorporated into the local tax laws.
Existing law requires the state to 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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 6388.5 of the Revenue and Taxation Code, as amended by Section 28 of Chapter 371 of the Statutes of 2020, is amended to read:6388.5.
(a) Notwithstanding Section 6388,(1) (A) Written evidence of an out-of-state license and registration for the vehicle.
(B) In cases where If
the vehicle is subject to the permanent trailer identification plate program under Section 5014.1 of the Vehicle Code and is used exclusively in interstate or foreign commerce, or both, written evidence of the purchaser’s or lessee’s United States Department of Transportation number or Unified Carrier Registration System filing may be substituted for the written evidence described in subparagraph (A).
(C) In cases where If the vehicle is registered under the International Registration Plan pursuant to Section 8052 of the Vehicle Code and is used exclusively in interstate or foreign commerce, or both, written evidence of the purchaser’s or lessee’s United States Department of Transportation number or Unified Carrier Registration
System filing may be substituted for the written evidence described in subparagraph (A).
(2) The purchaser’s affidavit attesting that the purchaser purchased the vehicle from a dealer at a specified location for use exclusively outside this state, or exclusively in interstate or foreign commerce, or both.
(3) The purchaser’s affidavit that the vehicle has been moved or driven to a point outside this state within the appropriate period of either 30 days or 75 days of the date of the delivery of the vehicle to the purchaser.
(b) For the purpose of complying with Section 41 of the Revenue and Taxation Code, the Legislature declares the following with respect to the extension of the exemption by this section.
(1) The goal of this section, as amended by Chapter 226 of the Statutes of 2019 and the act adding this subdivision, is to bring, and continue to bring, parity to the law regulating interstate commerce and to allow commercial trucks to meet the same requirements as commercial trailers that are purchased in the state for use either entirely outside the state or strictly in interstate commerce.
(2) The goal of this policy is to increase sales of commercial trucks that have an unladen weight of 6,000 pounds or more that will be used in interstate commerce.
(3) To measure the goal described in paragraph (1), the Legislative Analyst’s Office shall measure how many in-state truck deliveries were affected by this section, as amended by Chapter 226 of the Statutes of 2019 and the act adding this subdivision, and shall report to
the Legislature biannually on its findings.
(b)
(c) This section shall become inoperative on January 1, 2024, 2029, and as of that date is repealed.
SEC. 2.
Section 6388.5 of the Revenue and Taxation Code, as amended by Section 29 of Chapter 371 of the Statutes of 2020, is amended to read:6388.5.
(a) Notwithstanding Section 6388,(1) (A) Written evidence of an out-of-state license and registration for the vehicle.
(B) In cases where If
the vehicle is subject to the permanent trailer identification plate program under Section 5014.1 of the Vehicle Code and is used exclusively in interstate or foreign commerce, or both, written evidence of the purchaser’s or lessee’s United States Department of Transportation number or Unified Carrier Registration System filing may be substituted for the written evidence described in subparagraph (A).
(2) The purchaser’s affidavit attesting that the purchaser purchased the vehicle from a dealer at a specified location for use exclusively outside this state, or exclusively in interstate or foreign commerce, or both.
(3) The purchaser’s affidavit that the vehicle has been moved or driven to a point outside this state within the appropriate period of either 30 days or 75 days of the date of the delivery of the vehicle to the purchaser.
(b) This section shall become operative on January 1, 2024.
2029.