Bill Text: CA AB3360 | 2019-2020 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Sales and use taxes: exemption: lease of solar electric generation systems: Greenhouse Gas Reduction Fund: transfer.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-05-06 - Re-referred to Com. on REV. & TAX. [AB3360 Detail]
Download: California-2019-AB3360-Introduced.html
Bill Title: Sales and use taxes: exemption: lease of solar electric generation systems: Greenhouse Gas Reduction Fund: transfer.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-05-06 - Re-referred to Com. on REV. & TAX. [AB3360 Detail]
Download: California-2019-AB3360-Introduced.html
CALIFORNIA LEGISLATURE—
2019–2020 REGULAR SESSION
Assembly Bill
No. 3360
| Introduced by Assembly Member Cunningham |
February 21, 2020 |
An act to amend Sections 6006 and 6010 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 3360, as introduced, Cunningham.
Sales and use tax: lease of solar equipment.
The Sales and Use Tax Law imposes a use tax 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 specifies that a “sale” and “purchase” includes, among other things, a lease of tangible personal property in any manner or by any means whatsoever, for consideration, except a lease of, among other things, household furnishings with a lease of the living quarters in which they are to be used.
This bill would additionally exclude, from the definitions of “sale” and “purchase,” a lease of solar equipment used for purposes of complying with specified state building standards.
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.
This bill also would include additional information required for any bill authorizing a new tax expenditure.
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 6006 of the Revenue and Taxation Code is amended to read:6006.
“Sale” means and includes:(a) Any transfer of title or possession, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration. “Transfer of possession” includes only transactions found by the board to be in lieu of a transfer of title, exchange, or barter.
(b) The producing, fabricating, processing, printing, or imprinting of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the producing, fabricating, processing, printing, or imprinting.
(c) The furnishing and
distributing of tangible personal property for a consideration by social clubs and fraternal organizations to their members or others.
(d) The furnishing, preparing, or serving for a consideration of food, meals, or drinks.
(e) A transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price.
(f) A transfer for a consideration of the title or possession of tangible personal property which has been produced, fabricated, or printed to the special order of the customer, or of any publication.
(g) Any lease of tangible personal property in any manner or by any means whatsoever, for a consideration, except a lease of:
(1) Motion pictures or animated motion pictures, including television, films, and tapes.
(2) Linen supplies and similar articles when an essential part of the lease agreement is the furnishing of the recurring service of laundering or cleaning the articles.
(3) Household furnishings with a lease of the living quarters in which they are to be used.
(4) Mobile transportation equipment for use in transportation of persons or property as defined in Section 6023.
(5) Solar equipment used for purposes of complying with the California Building Standards Code (Title 24 of the California Code of Regulations).
(5)
(6) Tangible personal property leased in substantially the same form as acquired by the lessor or leased in substantially the same form as acquired by a transferor, as to which the lessor or transferor has paid sales tax reimbursement or has paid use tax measured by the purchase price of the property. For purposes of this paragraph, “transferor” shall mean the following:
(A) A person from whom the lessor acquired the property in a transaction described in subdivision (b) of Section 6006.5.
(B) A decedent from whom the lessor acquired the property by will or the laws of succession.
(6)
(7) A mobilehome, as defined in Sections 18008 and 18211 of the Health and Safety Code, other than a mobilehome originally sold new prior to July 1, 1980, and not subject to local property taxation.
(7)
(8) Paragraphs (1) and (5) and Section 6094.1 shall not apply to rentals or leases of video cassettes, video tapes, and video discs for private use under which the lessee or renter does not obtain or acquire the right to license, broadcast, exhibit, or reproduce the video cassette, video tape, or video
disc.
SEC. 2.
Section 6010 of the Revenue and Taxation Code is amended to read:6010.
“Purchase” means and includes:(a) Any transfer of title or possession, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration. “Transfer of possession” includes only transactions found by the board to be in lieu of a transfer of title, exchange, or barter.
(b) When performed outside this state or when the customer gives a resale certificate pursuant to Article 3 (commencing with Section 6091) of Chapter 2, the producing, fabricating, processing, printing, or imprinting of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the
producing, fabricating, processing, printing, or imprinting.
(c) A transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price.
(d) A transfer for a consideration of tangible personal property which has been produced, fabricated, or printed to the special order of the customer, or of any publication.
(e) Any lease of tangible personal property in any manner or by any means whatsoever, for consideration, except a lease of:
(1) Motion pictures or animated motion pictures, including television, films, and tapes.
(2) Linen supplies and similar articles when an essential part of the lease agreement is the furnishing of
the recurring service of laundering or cleaning the articles.
(3) Household furnishings with a lease of the living quarters in which they are to be used.
(4) Mobile transportation equipment for use in transportation of persons or property as defined in Section 6023.
(5) Solar equipment used for purposes of complying with the California Building Standards Code (Title 24 of the California Code of Regulations).
(5)
(6) Tangible personal property leased in substantially the same form as acquired by the lessor or leased in substantially the same form as acquired by a transferor, as to which the lessor or transferor has paid sales tax reimbursement or has paid use tax measured by the purchase price of the property. For purposes of this paragraph, “transferor” shall mean the following:
(A) A person from whom the lessor acquired the property in a transaction described in subdivision (b) of Section 6006.5.
(B) A decedent from whom the lessor acquired the property by will or the laws of succession.
(6)
(7) A mobilehome, as defined in Sections 18008 and 18211 of the Health and Safety Code, other than a mobilehome originally sold new prior to July 1, 1980, and not subject to local property taxation.
(7)
(8) Paragraphs (1) and (5) and Section 6094.1 shall not apply to rentals or leases of video cassettes, video tapes, and video discs for private use under which the lessee or renter does not obtain or acquire the right to license, broadcast, exhibit, or reproduce the video cassette, video tape, or video disc.
SEC. 3.
For purposes of complying with the requirements of Section 41 of the Revenue and Taxation Code, with respect to the exemption allowed by Sections 6006 and 6010 of the Revenue and Taxation Code, as amended by this act, hereafter “the exemption,” the Legislature finds and declares the following:(a) The specific goal, purpose, and objective of the exemption is to promote the leasing of solar equipment.
(b) Detailed performance indicators for the Legislature to use in determining whether the exemption meets the goal, purpose, and objective described in subdivision (a) shall be the sales and use tax revenue lost due to the exemption.
(c) (1) The Legislative Analyst shall, on an annual basis, collaborate with the California Department of Tax and Fee Administration to review and submit a report to the Legislature regarding the effectiveness of the benefit. The review shall include, but not be limited to, the sales and use tax revenue lost due to the exemption. The report to the Legislature required by this section shall be submitted in compliance with Section 9795 of the Government Code.
(2) The Legislative Analyst may require information from the California Department of Tax and Fee Administration, and the California Department of Tax and Fee Administration shall provide to the Legislative Analyst that information, for purposes of complying with paragraph (1).
