Bill Text: CA AB81 | 2011-2012 | Regular Session | Amended
Bill Title: Sales and use taxes: exemptions: fuel and petroleum
Spectrum: Bipartisan Bill
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. [AB81 Detail]
Download: California-2011-AB81-Amended.html
BILL NUMBER: AB 81 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 24, 2011
AMENDED IN ASSEMBLY APRIL 25, 2011
AMENDED IN ASSEMBLY MARCH 23, 2011
AMENDED IN ASSEMBLY FEBRUARY 16, 2011
INTRODUCED BY Assembly Member Beall
(Coauthor: Assembly Member Jeffries)
JANUARY 4, 2011
An act to add and repeal Section 6357.8 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 81, as amended, Beall. Sales and use taxes: exemptions: fuel
and petroleum products: air common carriers.
The Sales and Use Tax Law imposes 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. That
law provides various exemptions from that tax, including an exemption
for the gross receipts from the sale of, and the storage, use, or
other consumption of, fuel and petroleum products sold to an air
common carrier for immediate consumption or shipment in the conduct
of its business on an international flight.
This bill would, on or after January 1, 2012, exempt from those
state taxes, gross receipts or sales price in excess of the average
spot price over the previous 5 years, per gallon, derived from the
sale in this state of, and the storage, use, or other consumption in
this state of, fuel and petroleum products sold to or purchased by an
air common carrier for consumption or shipment in the conduct of its
business on a domestic flight, as specified. The bill would repeal
these provisions on January 1, 2017, unless the Legislative
Analyst's Office, in cooperation with the Employment
Development Department , makes a specified finding, in
which case the bill would repeal these provisions on January 1, 2020.
This bill would also require the State Board of Equalization,
beginning on January 1, 2013, and annually thereafter, to submit a
report to the Legislature setting forth the state fiscal impact of
the exemption, and would require the Legislative Analyst's
Office, in cooperation with the Employment Development
Department , to submit a report to the Legislature and the
Department of Finance on or before October 1, 2016, determining
whether a net increase of 2,000 or more airline
industry jobs have been or are expected to be created in
California by the bill on or before January 1, 2017.
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 into these laws.
This bill would specify that this exemption does not apply to
local sales and use taxes or transactions and use taxes ,
unless the governing body of the taxing county, city, or district
authorizes an exemption and provides notice to the board on or before
December 1, 2011 .
This bill would take effect immediately as a tax levy.
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 6357.8 is added to the Revenue and Taxation
Code, to read:
6357.8. (a) (1) On and after January 1, 2012, and before January
1, 2020, there are exempted from the taxes imposed by this part, the
gross receipts or sales price in excess of the average spot price
over the previous five fiscal years, per gallon, as determined by the
board, derived from the sale in this state of, or the storage, use,
or other consumption in this state of, fuel and petroleum products
sold to or purchased by an air common carrier for consumption or
shipment in the conduct of its business as an air common carrier, on
a domestic flight.
(2) For application in the 2011-12 fiscal year, the board shall,
on or before October 1, 2011, determine the average spot price over
the previous five fiscal years, per gallon, derived from the sale in
this state of, or the storage, use, or other consumption in this
state of, fuel and petroleum products sold to or purchased by an air
common carrier for consumption or shipment in the conduct of its
business as an air common carrier, on a domestic flight.
(3) For application in the 2012-13 fiscal year and each fiscal
year thereafter, the board shall, on or before March 1 preceding that
fiscal year determine the average spot price over the previous five
fiscal years, per gallon, derived from the sale in this state of, or
the storage, use, or other consumption in this state of, fuel and
petroleum products sold to or purchased by an air common carrier for
consumption or shipment in the conduct of its business as an air
common carrier, on a domestic flight.
(b) To qualify for the exemption, the air common carrier shall
furnish to the seller an exemption certificate in the form prescribed
by the board. Acceptance in good faith of that certificate shall
relieve the seller from liability for that portion of the sales tax
exempted under this section.
(c) For purposes of this section, the following definitions apply:
(1) "Air common carrier" has the same meaning as that set
forth in Section 23046 of the Business and Professions Code.
means any person who engages in the business of
transporting persons or property for hire or compensation and who
offers these services indiscriminately to the public or to some
portion of the public.
(2) "Domestic flight" means a flight whose final destination is a
point inside of the United States.
(d) Any air common carrier claiming exemption under this section
that is not required to hold a valid seller's permit, shall be
required to register with the board and obtain a fuel exemption
registration number, and shall be required to file returns as the
board may prescribe, either if the board notifies the carrier that
returns must be filed or if the carrier is liable for taxes based
upon consumption or transportation of fuel or petroleum products
erroneously claimed as exempt under this section.
(e) An air common carrier claiming an exemption under this
section, upon request, shall make available to the board records,
including, but not limited to, a copy of a log abstract, an air
waybill, or a cargo manifest, documenting its consumption or
transportation of the fuel or petroleum products on a domestic flight
and the amount claimed as exempt. If the carrier fails to provide
these records upon request, the board may revoke the carrier's fuel
exemption registration number.
(f) The board may require any air common carrier claiming an
exemption under this section and required to obtain a fuel exemption
registration number, to place with it such security as the board may
determine pursuant to Section 6701.
(g) Pursuant to this section, any use of the fuel and petroleum
products by the purchasing carrier, other than that incident to the
delivery of the fuel and petroleum products to the carrier and the
consumption or transportation of the fuel and petroleum products by
the carrier on a domestic flight for use in the conduct of its
business as a common carrier, or a failure of the carrier to document
its consumption or transportation of the fuel and petroleum products
on a domestic flight, shall subject the carrier to liability for
payment of sales tax as if it were a retailer making a retail sale of
the property at the time of that use or failure, and the sales price
of the property to it shall be deemed to be the gross receipts from
the retail sale.
(h) (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, unless approved by the local
government that would otherwise receive the revenues derived from the
taxes imposed under those laws. of those laws.
(2) The governing body of any county, city, or district may enact
an ordinance to authorize the exemption as described in subdivision
(a) with respect to taxes levied by that entity, and shall notify the
State Board of Equalization of this action on or before December 1,
2011.
(i) (1) On January 1, 2013, and annually thereafter, the State
Board of Equalization shall submit a report to the Legislature
setting forth the state fiscal impact of the exemption allowed under
this section.
(2) (A) The
Employment Development Department The
Legislative Analyst's Office, in cooperation with the Employment
Development Department, shall submit a report to the
Legislature and the Department of Finance on or before October 1,
2016, determining whether a net increase of 2,000 or more
airline industry jobs have been created, or are expected
to be created, in California on or before January 1, 2017,
as a result of this section.
(B) The requirement for submitting a report imposed under
subparagraph (A) is inoperative on October 1, 2020, pursuant to
Section 10231.5 of the Government Code.
(3) A report to be submitted pursuant to paragraphs (1)
and (2) paragraph (1) shall be submitted in
compliance with Section 9795 of the Government Code.
(j) This section shall remain in effect only until January 1,
2017, and as of that date is repealed, unless the Legislative
Analyst's Office, in cooperation with the Employment
Development Department , makes a finding on or before
January 1, 2017, that a net increase of 2,000 or more
airline industry jobs have been created in California
as a result of this section, in which case this section shall
remain in effect until January 1, 2020, and as of that date is
repealed.
SEC. 2. Notwithstanding Section 2230 of the
Revenue and Taxation Code, no appropriation is made by this act and
the state shall not reimburse any local agency for any sales and use
tax revenues lost by it under this act.
SEC. 3. SEC. 2. This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.
