Bill Text: CA AB88 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Amended.html

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BILL NUMBER: AB 88	AMENDED
	BILL TEXT

	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   ) 
   (  Coauthor:   Senator  
Hall   Coauthors:   Senators  
Cannella,   Mendoza,   and Vidak  )

                        JANUARY 7, 2015

   An act to add Section 6371.5 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 88, as amended, Gomez. Sales and use taxes: exemption: energy
or water efficient home appliances.
   (1) Existing sales  an   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 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
efficiency program for use by that low-income participant in the
energy efficiency program.
   (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 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.
   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 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 efficiency program for use
by that low-income participant in the energy 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
efficiency program. 
   (b) For purposes of this section:
   (1) "Energy or water efficient home appliance" means  an
appliance   a refrigerator, dishwasher, washer, dryer,
or other appliance  that meets performance requirements under
the ENERGY STAR program, established pursuant to Section 6294a of
Title 42 of the United States Code  , or a similarly labeled
refrigerator, dishwasher, washer, dryer, or other appliance with a
Tier I equivalent or better energy efficiency rating  .
   (2) "Low-income participant" means any person who is, or who is
residing in a home with a person who is, a recipient of Medi-Cal,
CalFresh, CalWORKs, Supplemental Security Income,  Women,
Infant, and Children Nutrition Supplement,   Special
Supplemental Nutrition Program for Women, Infants, and Children 
Low-Income Home Energy Assistance Program, State Utility Assistance
Supplement, or some other state or federal means tested program or is
able to certify that their gross income, not including any amount of
food assistance, is less than 200 percent of the federal poverty
guidelines.
   (3) "Public utility" means an entity defined in Section 216 or
224.3 of the Public Utilities Code.
  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.