Bill Text: CA SB1338 | 2015-2016 | Regular Session | Amended
Bill Title: Sales and use taxes: exemption: zero-emission and near-zero-emission equipment.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Failed) 2016-11-30 - From Assembly without further action. [SB1338 Detail]
Download: California-2015-SB1338-Amended.html
BILL NUMBER: SB 1338 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 4, 2016
AMENDED IN SENATE APRIL 4, 2016
INTRODUCED BY Senator Lara
( Coauthors: Senators Beall,
Hernandez, Hertzberg, and Pavley
)
FEBRUARY 19, 2016
An act to add Section 6377.5 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1338, as amended, Lara. Sales and use taxes: exemption:
zero-emission and near-zero-emission equipment.
Existing sales and use tax laws impose 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,
and provides various exemptions from those taxes.
The bill would exempt from those taxes, on and after January 1,
2017, and before January 1, 2030, the gross receipts from the sale
of, and the storage, use, or other consumption of, qualified tangible
personal property purchased by a qualified person, as defined, for
use primarily in, at, or on a marine terminal or qualified tangible
personal property used primarily to maintain, repair, or test the
above-described equipment, as provided. The bill would require the
purchaser to furnish the retailer with an exemption certificate, as
specified.
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
conformity 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, transactions and use taxes, and specified
state taxes from which revenues are deposited into the Local Public
Safety Fund, the Education Protection Account, the Local Revenue
Fund, or the Local Revenue Fund 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. (a) The Legislature finds and declares:
(1) California's complex freight transportation system is
responsible for one-third of the state's economy and jobs, with
freight-dependent industries accounting for over $700 billion in
revenue and over 5 million jobs in 2013, and is home to the largest
gateway for international trade and domestic commerce in the nation,
with an interconnected system of ports, railroads, highways, and
roads that allow goods from around the world to move throughout the
state.
(2) Significant investments in freight infrastructure are
necessary to ensure the continued economic competitiveness of our
state's seaports and to deploy zero-emission and near-zero-emission
equipment. There are additional expenses that accompany investment in
the next generation of zero-emission and near-zero-emission
equipment and supporting infrastructure at marine terminals in
California's public ports.
(3) The primary purpose of this act is to encourage the
development and growth of investment in, and subsequent increased use
of, California's public port facilities and the introduction of
zero-emission and near-zero-emission equipment and supporting
infrastructure at California's public port facilities.
(4) This legislation is necessary to further incentivize the
earliest possible investment in and adoption of zero-emission and
near-zero-emission technology at California's public seaports.
Companies should be encouraged to take on the additional costs of
purchasing and maintaining zero-emission equipment and supporting
infrastructure in partnership with the state to achieve the state's
emission reduction goals by reducing those state taxes which would
increase the ultimate cost of these new equipment and infrastructure
investments.
(b) It is the intent of the Legislature to incentivize the
earliest possible adoption of zero-emissions technology at California'
s public seaports and to eliminate taxes imposed on the purchase of
that equipment that further increase the costs of purchasing and
maintaining zero-emission equipment and supporting infrastructure,
which are already of significantly greater expense than conventional
equipment and infrastructure.
SEC. 2. Section 6377.5 is added to the Revenue and Taxation Code,
to read:
6377.5. (a) On or after January 1, 2017, and before January 1,
2030, there are exempted from the taxes imposed by this part the
gross receipts from the sale of, and the storage, use, or other
consumption in this state of, any of the following:
(1) Qualified tangible personal property purchased for use by a
qualified person to be used primarily in, at, or on a marine terminal
of a California public port for carriage, handling, or movement of
freight, cargo, and goods.
(2) Qualified tangible personal property purchased for use by a
qualified person to be used primarily to maintain, repair, measure,
or test any qualified tangible personal property described in
paragraph (1).
(b) For purposes of this section:
(1) "Primarily" means 50 percent or more of the time.
(2) "Qualified person" means a person that is a stevedore, marine
terminal operator, operator of a port port,
rail ramp, rail yard, imtermodal facility, or freight yard, or
any other person that is engaged in cargo and freight loading,
delivery, movement, storage, and conveyance at or within a California
public seaport.
(3) "Qualified tangible personal property" includes both of the
following:
(A) All zero-emission or near-zero-emission equipment used in
conjunction with the movement of goods or freight, including, but not
limited to, computers, data-processing equipment, and computer
software, required to operate, control, regulate, or maintain the
zero-emission or near-zero-emission equipment, together with all
repair and replacement parts with a useful life of one or more years
therefor, whether purchased separately or in conjunction with the
equipment and regardless of whether the machine or component parts
are assembled by the qualified person or another party.
(B) Special purpose buildings and foundations used as an integral
part of the process of utilization of zero-emission equipment or
near-zero-emission equipment constitute qualified tangible personal
property to the extent that the sale of, or storage, use, or other
consumption is subject to the imposition of sales or use tax.
(4) "Zero-emission or near-zero-emission equipment" means
equipment, off-road vehicles, and related technologies
used at a within the boundaries of a
California public seaport that reduce or eliminate greenhouse gas
emissions and improve air quality when compared with conventional or
fully commercialized alternatives, as identified by the State Air
Resources Board in consultation with the State Energy Resources
Conservation and Development Commission. "Zero-emission and
near-zero-emission equipment" may include, but is not limited to,
enabling technologies that provide a pathway to emission reductions,
advanced or alternative fuel engines, and hybrid or alternative fuel
technologies for seaport equipment.
(c) An exemption shall not be allowed under this section unless
the purchaser furnishes the retailer with an exemption certificate,
completed in accordance with any instructions or regulations as the
board may prescribe, and the retailer retains the exemption
certificate in its records and furnishes it to the board upon
request.
(d) (1) Notwithstanding the Bradley-Burns Uniform Local Sales and
Use Tax Law (Part 1.5 (commencing with Section 7200)) and 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.
(2) Notwithstanding subdivision (a), the exemption established by
this section shall not apply with respect to any tax levied pursuant
to Section 6051.2 or 6201.2, pursuant to Sections 35 and 36 of
Article XIII of the California Constitution, or any tax levied
pursuant to Sections 6051 or 6201 that is deposited in the State
Treasury to the credit of the Local Revenue Fund 2011 pursuant to
Sections 6051.15 or 6201.15.
(e) Notwithstanding subdivision (a), the exemption provided by
this section shall not apply to any sale or storage, use, or other
consumption of property that, within one year from the date of
purchase, is removed from California, converted from an exempt use
under subdivision (a) to some other use not qualifying for exemption,
or otherwise used in a manner not qualifying for exemption.
(f) This section shall apply to leases of qualified tangible
personal property classified as "continuing sales" and "continuing
purchases" in accordance with Sections 6006.1 and 6010.1. The
exemption established by this section shall apply to the rentals
payable pursuant to the lease, provided the lessee is a qualified
person and the tangible personal property is qualified tangible
personal property used in an activity described in subdivision (a).
(g) (1) Upon the effective date of this section, the Department of
Finance shall estimate the total dollar amount of exemptions that
will be taken for each calendar year, or any portion thereof, for
which this section provides an exemption.
(2) No later than each March 1 next following a calendar year for
which this section provides an exemption, the board shall provide to
the Joint Legislative Budget Committee a report of the total dollar
amount of exemptions taken under this section for the immediately
preceding calendar year. The report shall compare the total dollar
amount of exemptions taken under this section for that calendar year
with the department's estimate for that same calendar year. If that
total dollar amount taken is less than the estimate for that calendar
year, the report shall identify options for increasing exemptions
taken so as to meet estimated amounts.
SEC. 3. This act provides for a tax levy within the meaning of
Article IV of the California Constitution and shall go
into immediate effect.
