Bill Text: CA AB88 | 2015-2016 | Regular Session | Enrolled
Bill Title: Sales and use taxes: exemption: energy or water efficient home appliances.
Spectrum: Moderate Partisan Bill (Democrat 20-4)
Status: (Vetoed) 2016-01-15 - Consideration of Governor's veto stricken from file. [AB88 Detail]
Download: California-2015-AB88-Enrolled.html
BILL NUMBER: AB 88 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 1, 2015
PASSED THE ASSEMBLY SEPTEMBER 2, 2015
AMENDED IN SENATE JULY 15, 2015
AMENDED IN SENATE JUNE 30, 2015
AMENDED IN ASSEMBLY MAY 20, 2015
AMENDED IN ASSEMBLY APRIL 6, 2015
INTRODUCED BY Assembly Member Gomez
(Principal coauthor: Senator Hall)
(Coauthors: Assembly Members Alejo, Bonta, Brown, Chau, Chiu,
Dababneh, Dodd, Gipson, Gray, Jones-Sawyer, Levine, Lopez, McCarty,
Nazarian, O'Donnell, Rendon, Salas, Waldron, and Wilk)
(Coauthors: Senators Cannella, Mendoza, and Vidak)
JANUARY 7, 2015
An act to add and repeal Section 6371.5 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 88, Gomez. Sales and use taxes: exemption: energy or water
efficient home appliances.
(1) Existing sales and use tax laws impose a tax on retailers
measured by the gross receipts from their sales of tangible personal
property sold at retail in this state, or on the storage, use, or
other consumption of tangible personal property purchased from a
retailer for storage, use, or other consumption in this state, and
specify certain exemptions from the amount of tax imposed.
This bill, until January 1, 2021, would exempt from these taxes
the gross receipts from the sale of, and the storage, use, or other
consumption in this state of, an energy or water efficient home
appliance purchased by a public utility that is provided at no cost
to a low-income participant in a federal, state, or ratepayer-funded
energy or water efficiency program for use by that low-income
participant in the energy efficiency program. The bill would define
terms for its purposes.
(2) 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 generally in accordance with the Transactions and Use Tax Law,
which generally conforms to the Sales and Use Tax Law. Amendments to
state sales and use taxes are incorporated into 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 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.
(3) This bill would take effect immediately as a tax levy, but its
operative date would depend on its effective date.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6371.5 is added to the Revenue and Taxation
Code, to read:
6371.5. (a) (1) There are exempted from the taxes imposed by this
part the gross receipts from the sale of, and the storage and use
of, or other consumption in this state of, an energy or water
efficient home appliance purchased by a public utility that is
provided at no cost to a low-income participant in a federal, state,
or ratepayer-funded energy or water efficiency program for use by
that low-income participant in the energy or water efficiency
program.
(2) Any amounts that would have been paid as sales tax
reimbursement or use tax by the public utility but for the exemption
provided by paragraph (1) shall be used by the public utility to
purchase additional energy or water efficient home appliances to be
provided at no cost to low-income participants in the energy or water
efficiency program.
(b) For purposes of this section:
(1) "Energy or water efficient home appliance" means a
refrigerator or clothes washer that meets performance requirements
under the ENERGY STAR program, established pursuant to Section 6294a
of Title 42 of the United States Code.
(2) "Low-income participant" means a person who is a participant
in the California Public Utilities Commission's Energy Savings
Assistance Program (ESAP), or a similar energy or water efficiency
program, provided by a public utility with income guidelines that do
not exceed the income guidelines for ESAP participants.
(3) "Public utility" means an entity defined in Section 216 or
224.3 of the Public Utilities Code.
(c) It is the intent of the Legislature that no inference be drawn
in connection with the addition of the sales and use tax exemption
made by this act to events occurring before the passage of this act.
(d) This section shall remain in effect only until January 1,
2021, 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. 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.
