Bill Text: CA SB19 | 2013-2014 | Regular Session | Amended
Bill Title: Sales and use taxes: exemptions: property for use in space flight.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-02-03 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB19 Detail]
Download: California-2013-SB19-Amended.html
BILL NUMBER: SB 19 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 14, 2013
AMENDED IN SENATE APRIL 18, 2013
INTRODUCED BY Senator Knight
DECEMBER 3, 2012
An act to amend , repeal, and add Section 6380 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 19, as amended, Knight. Sales and use taxes: exemptions:
property for use in space flight.
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.
The Sales and Use Tax Law provides various exemptions from those
taxes, including an exemption for the gross receipts from the sale
of, and the storage, use, or other consumption of, qualified property
for use in space flight.
This bill would , until January 1, 2024, expand this
exemption to also include equipment and materials used to construct,
reconstruct, or improve new or existing facilities designed to
launch, manufacture, fabricate, assemble, or process equipment that
facilitates the renovation, rehabilitation, or reconstruction of
commercial space launch sites. This bill would require the
Legislative Analyst's Office, by January 1, 2023, with information
provided by the State Board of Equalization, to report to the
Legislature on the effect of the exemption on employment and
investment in the commercial space flight industry, using data,
including, but not limited to, that produced by the Employment
Development Department Labor Market Information Division.
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. 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.
This bill would take effect immediately as a tax levy, but its
operative date would depend on its effective date.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6380 of the Revenue and Taxation Code is
amended to read:
6380. (a) 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, qualified property for use in space
flight.
(b) For purposes of this section:
(1) "Facilities designed to launch" includes, but is not limited
to, a mission control center.
(2) "Qualified property" means any of the following:
(A) Tangible personal property that has space flight capability,
including, but not limited to, an orbital space facility, space
propulsion system, space vehicle, satellite, or space station of any
kind, and any component thereof.
(B) Tangible personal property to be placed or used aboard any
facility, system, vehicle, satellite, or station described in
subparagraph (A), regardless of whether that property is to be
ultimately returned to this state for subsequent use, storage, or
other consumption.
(C) Tangible personal property in the form of equipment and
materials used to construct, reconstruct, or improve new or existing
facilities designed to launch, manufacture, fabricate, assemble, or
process equipment that facilitates the renovation, rehabilitation, or
reconstruction of commercial space launch sites.
(D) Fuel of a quality that is not adaptable for use in ordinary
motor vehicles, but is produced, sold, and used exclusively for space
flight.
(3) "Space flight" means any flight designed for suborbital,
orbital, or interplanetary travel by a space vehicle, satellite,
space facility, or space station of any kind.
(c) The exemption established by this section shall not be denied
by reason of a failure, postponement, or cancellation of a launch of
a space vehicle, satellite, space facility, or space station of any
kind, or the destruction of any launch vehicle or any component
thereof.
(d) The Legislative Analyst's Office shall, by January 1, 2023,
with information provided by the board, report to the Legislature on
the effect of the exemption added by the act adding this subdivision
on employment and investment in the commercial space flight industry,
using data, including, but not limited to, that produced by the
Employment Development Department Labor Market Information Division.
(e) This section shall become inoperative on January 1, 2024, and
is repealed as of that date.
SEC. 2. Section 6380 is added to the
Revenue and Taxation Code , to read:
6380. (a) 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, qualified property for use in space
flight.
(b) For purposes of this section:
(1) "Qualified property" means any of the following:
(A) Tangible personal property that has space flight capability,
including, but not limited to, an orbital space facility, space
propulsion system, space vehicle, satellite, or space station of any
kind, and any component thereof.
(B) Tangible personal property to be placed or used aboard any
facility, system, vehicle, satellite, or station described in
subparagraph (A), regardless of whether that property is to be
ultimately returned to this state for subsequent use, storage, or
other consumption.
(C) Fuel of a quality that is not adaptable for use in ordinary
motor vehicles, but is produced, sold, and used exclusively for space
flight.
(2) "Space flight" means any flight designed for suborbital,
orbital, or interplanetary travel by a space vehicle, satellite,
space facility, or space station of any kind.
(c) The exemption established by this section shall not be denied
by reason of a failure, postponement, or cancellation of a launch of
a space vehicle, satellite, space facility, or space station of any
kind, or the destruction of any launch vehicle or any component
thereof, but the exemption shall not apply to any material that is
not intended to be launched into space.
(d) This section shall become operative on January 1, 2024.
SEC. 2. SEC. 3. 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. 4. 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.
