Bill Text: CA SB1257 | 2011-2012 | Regular Session | Amended

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

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Bill Title: Utility user tax: exemption: public transit vehicles.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2012-08-28 - Chaptered by Secretary of State. Chapter 213, Statutes of 2012. [SB1257 Detail]

Download: California-2011-SB1257-Amended.html

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BILL NUMBER: SB 1257	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 11, 2012
	AMENDED IN SENATE  APRIL 25, 2012
	AMENDED IN SENATE  APRIL 16, 2012

INTRODUCED BY   Senator Hernandez
    (   Coauthor:   Senator   Huff
  ) 
    (   Coauthor:   Assembly Member  
Torres   ) 

                        FEBRUARY 23, 2012

   An act to amend Section 7284.2 of, and to add Section 7284.3 to,
the Revenue and Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1257, as amended, Hernandez. Utility user tax: exemption:
public transit vehicles.
   Existing law generally provides that the legislative body of any
city and any charter city may make and enforce all ordinances and
regulations with respect to municipal affairs, as provided,
including, but not limited to, a utility user tax on the consumption
of gas and electricity. Existing law provides that the board of
supervisors of any county may levy a utility user tax on the
consumption of, among other things, gas and electricity, in the
unincorporated area of the county.
   This bill would provide that a local jurisdiction, as defined, may
not impose a utility user tax, as specified, upon either the
consumption of compressed natural gas dispensed by a gas compressor,
within a local jurisdiction, that is separately metered and is
dedicated to providing compressed natural gas as a motor vehicle fuel
for use by the local agency or public transit operator or the
consumption of electricity used to charge electric bus propulsion
batteries, within a local jurisdiction, that is separately metered
and is dedicated to providing electricity as fuel for an electric
public transit bus.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.   It is the intent of the Legislature to recognize that
public transit operators are moving towards the use of electricity as
a primary fuel source to meet air quality objectives at the state
and regional levels, as well as to provide vital public
transportation services to transit-dependent citizens in California.
Further, the Mills-Hayes Act (Section 8655 of the Revenue and
Taxation Code) provides that a tax shall not be imposed upon the use
of fuel by public transit operations. Enactment of this legislation
will clarify that, pursuant to the Mills-Hayes Act, the consumption
of electricity as a motor vehicle fuel for use by an electric public
transit bus shall be exempt from any taxes imposed upon the
consumption of electricity.
  SEC. 2.  Section 7284.2 of the Revenue and Taxation Code is amended
to read:
   7284.2.  The board of supervisors of any county may levy a utility
user tax on the consumption of electricity, gas, water, sewer,
telephone, telegraph, and cable television services in the
unincorporated area of the county.
  SEC. 3.  Section 7284.3 is added to the Revenue and Taxation Code,
to read:
   7284.3.  (a) For the purposes of this section:
   (1) "Local jurisdiction" means any city, county, city and county,
including any chartered city, county, or city and county, district,
or public or municipal corporation.
   (2) "Public transit operator" means a local or regional transit
agency or a joint powers agency operating bus transportation service
as described pursuant to Article 1 (commencing with Section 99200) of
Chapter 4 of Part 11 of Division 10 of the Public Utilities Code.
   (b) There  are exempted   is exempt 
from any utility user tax, imposed by any local jurisdiction, a local
agency's or public transit operator's consumption of compressed
natural gas dispensed by a gas compressor, within a local
jurisdiction, that is separately metered and is dedicated to
providing compressed natural gas as a motor vehicle fuel for use by
the local agency or public transit operator.
   (c) There  are exempted   is exempt 
from any utility user tax on the consumption of electricity, imposed
by any local jurisdiction, a local agency's or public transit
operator's consumption of electricity used to charge electric bus
propulsion batteries, within a local jurisdiction, that is separately
metered and is dedicated to providing electricity as a motor vehicle
fuel for use by an electric public transit bus.
  SEC. 4.  The Legislature finds and declares that exempting the
consumption of natural gas, electricity, or both, by a local agency
or public transit operator from local utility user taxes will ensure
statewide uniformity and fairness in the overall cost of providing
vital public transportation services to transit dependent citizens in
California. Therefore, exempting from utility user taxes the
consumption of natural gas, electricity, or both, as a motor vehicle
fuel for public transit vehicles by local agencies or public transit
operators is a matter of statewide concern, and not a municipal
affair, as that term is used in Section 5 of Article XI of the
California Constitution.