Bill Text: CA SB221 | 2013-2014 | Regular Session | Amended

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Bill Title: Sales and use taxes: vehicle license fee: exclusion: alternative fuel motor vehicles.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-02-03 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB221 Detail]

Download: California-2013-SB221-Amended.html

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BILL NUMBER: SB 221	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 11, 2013

INTRODUCED BY   Senator  Rubio   Pavley 

                        FEBRUARY 11, 2013

    An act to amend Section 4799.09 of the Public Resources
Code, relating to forestry.   An act to   add
and repeal Sections 6011.3, 6012.4, and 10759.5 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 221, as amended,  Rubio   Pavley  .
 Forestry: urban forests.   Sales and use taxes:
vehicle license fee: exclusion: alternative fuel motor vehicles.
 
   Existing laws impose state sales and use taxes 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, measured by the sales price. The Sales and Use Tax Law
defines the terms "gross receipts" and "sales price."  
   This bill would, on and after January 1, 2014, and before January
1, 2022, in the sale of a new alternative fuel motor vehicle, exclude
from the terms "gross receipts" and "sales price," any amount
allowed as a credit under a specified provision of the Internal
Revenue Code, relating to new qualified plug-in electric drive motor
vehicles, and any amounts received, awarded, or allowed pursuant to a
state incentive program for the purchase or lease of an alternative
fuel vehicle.  
   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. Exemptions from state sales and use taxes
are incorporated into these laws.  
   This bill would specify that this exclusion does not apply to
local sales and use taxes and transactions and use taxes.  
   The Vehicle License Fee Law provides that the annual amount of the
license fee for any vehicle is 0.65% of the market value of the
vehicle, as specified. That law provides for the determination of the
market value of any vehicle, for reclassification to increase the
market value of a vehicle, and for the exemption of certain vehicles
from the imposition of the license fee.  
   This bill would, on and after January 1, 2014, and before January
1, 2022, for purposes of determining the vehicle license fee, exempt
from the determination of market value of a new motor vehicle
propelled by alternative fuels any amount allowed as a credit under a
specified provision of the Internal Revenue Code, relating to new
qualified plug-in electric drive motor vehicles, and any amounts
received, awarded, or allowed pursuant to a state incentive program
for the purchase or lease of an alternative fuel vehicle.  
   This bill would take effect immediately as a tax levy. 

   Existing law, the California Urban Forestry Act of 1978,
authorizes the Department of Forestry and Fire Protection to
implement a program in urban forestry to, among other things,
encourage better management and planting of trees in urban areas and
assist cities in innovative solutions to problems, including
greenhouse gas emissions, urban heat island effect, stormwater
management, lack of green space, and vandalism. The Director of
Forestry and Fire Protection, with advice from other appropriate
state agencies and interested parties, is authorized to make grants
to provide assistance of 25% to 90%, inclusive of costs for projects
meeting guidelines established by the State Board of Forestry and
Fire Protection, upon recommendation by the director.  The director
is authorized to waive the cost-sharing requirement for projects that
are in disadvantaged and severely disadvantaged communities. The act
defines "disadvantaged community" for its purposes as a community
with a median household income less than 80% of the statewide
average.  
   This bill would instead define disadvantaged community as a
community that is disproportionately impacted by pollution and
adverse socioeconomic impacts. 
   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.    The Legislature finds and declares:
 
   (a) There is a wide disparity in fees levied on owners of light-,
medium-, and heavy-duty vehicles operated on alternative fuels when
compared to those same taxes and fees levied on owners of comparable
gasoline and diesel fuel vehicles.  
   (b) In some cases, the fees on alternative fuel vehicles are more
than twice as much as those for conventional fuel vehicles. 

   (c) The disparity in fees exists even though the alternative fuel
vehicle may look identical to the conventional fuel vehicle and
provide the same or lesser utility to the individual owner. 

   (d) The existing California vehicle license fee on motor vehicles
that operate on alternative fuels is higher than for comparable
conventional fuel vehicles because alternative fuel vehicles
generally have higher sales prices. The higher sales prices are
largely due to the fact that these vehicles are produced in extremely
low volumes (many assembled by hand), such that their production has
not achieved the economies of scale that would significantly reduce
their cost; and they use many new advanced materials and technologies
that also have not yet achieved economies of scale, and therefore
have a temporarily greater cost to consumers.  
   (e) The higher sales prices for these alternative fuel vehicles
are expected to be a short-term, temporary situation because prices
are expected to decline significantly to competitive levels as volume
increases. If this does not occur, these vehicles may never be
competitive, and automakers would likely withdraw them from the
market. The current vehicle license fee does not reflect these
temporary, short-term pricing situations. Instead it intrinsically,
but incorrectly, assumes that these short-term higher prices reflect
true long-term market value of the vehicles.  
   (f) Alternative fuel vehicles provide benefits to California
citizens that are external to, or not reflected in, their cost to the
purchaser. These benefits include: increasing our national
independence from foreign energy sources; providing more
transportation choices for consumers and businesses, thus reducing
our economic vulnerability to sudden fuel price increases caused by
external or internal events; reducing air pollutants, climate change
pollutants, and toxic emissions from mobile sources; and reducing
future pressures for additional environmental controls on existing
and new businesses and industries in California.  
   (g) It is the public policy of the State of California, the
federal government, and many local governments to encourage the
development and use of alternative fuel vehicles for the purpose of
providing the benefits described above to all California citizens.
 
   (h) Existing vehicle license fee calculations, as they relate to
the determination of market value of alternative fuel vehicles, do
not reflect the critical short-term pricing issues described above,
nor the external benefits that accrue to all California citizens.
Additionally, these existing fees act as a significant disincentive
to potential purchasers of alternative fuel vehicles and, as such,
are contrary to existing public policies at all levels of government.
 
   (i) It is the intent of the Legislature to equalize the vehicle
license fee between alternative fuel vehicles and conventional fuel
vehicles for a period of eight years, beginning January 1, 2014, and
ending December 31, 2021. 
   SEC. 2.    Section 6011.3 is added to the  
Revenue and Taxation Code   , to read:  
   6011.3.  (a) Notwithstanding Section 6011 or any other law, on and
after January 1, 2014, and before January 1, 2022, "sales price"
from the purchase of a new alternative fuel motor vehicle shall not
include any amount allowed as a credit under Section 30D of the
Internal Revenue Code, relating to new qualified plug-in electric
drive motor vehicles, and any amounts received, awarded, or allowed
pursuant to a state incentive program for the purchase or lease of an
alternative fuel vehicle, as may be determined by the board,
including, but not limited to, the Clean Vehicle Rebate Project, the
California Hybrid and Zero-Emission Truck and Bus Voucher Incentive
Project, and the On-Road Heavy-Duty Voucher Incentive Program under
the Carl Moyer Program.
   (b) For purposes of this section:
   (1) "Alternative fuel vehicle" means a motor vehicle subject to
registration under the Vehicle Code that operates some or all of the
time on a fuel other than gasoline or diesel fuel.
   (2) "Diesel fuel" means diesel fuel as defined by Section 60022.
   (3) "Gasoline" means gasoline as defined by Section 7316.
   (4) "Motor vehicle" means a motor vehicle as defined by Section
415 of the Vehicle Code.
   (c) The estimated cost of the vehicle after deducting the federal
and state incentive amounts described in subdivision (a) shall be
stated in the contract for sale or lease with the purchaser and shall
be reported to the board quarterly.
   (d) Notwithstanding any provision of the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200))
or the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251)), the exclusion 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.
   (e) This section is repealed on January 1, 2022. 
   SEC. 3.    Section 6012.4 is added to the  
Revenue and Taxation Code   , to read:  
   6012.4.  (a) Notwithstanding Section 6012 or any other law, on and
after January 1, 2014, and before January 1, 2022, "gross receipts"
from the sale of a new alternative fuel motor vehicle shall not
include any amount allowed as a credit under Section 30D of the
Internal Revenue Code, relating to new qualified plug-in electric
drive motor vehicles, and any amounts received, awarded, or allowed
pursuant to a state incentive program for the purchase or lease of an
alternative fuel vehicle, as may be determined by the board,
including, but not limited to, the Clean Vehicle Rebate Project, the
California Hybrid and Zero-Emission Truck and Bus Voucher Incentive
Project, and the On-Road Heavy-Duty Voucher Incentive Program under
the Carl Moyer Program.
   (b) For purposes of this section:
   (1) "Alternative fuel vehicle" means a motor vehicle subject to
registration under the Vehicle Code that operates some or all of the
time on a fuel other than gasoline or diesel fuel.
   (2) "Diesel fuel" means diesel fuel as defined by Section 60022.
   (3) "Gasoline" means gasoline as defined by Section 7316.
   (4) "Motor vehicle" means a motor vehicle as defined by Section
415 of the Vehicle Code.
   (c) The estimated cost of the vehicle after deducting the federal
and state incentive amounts described in subdivision (a) shall be
stated in the contract for sale or lease with the purchaser and shall
be reported to the board quarterly.
   (d) Notwithstanding any provision of the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200))
or the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251)), the exclusion 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.
   (e) This section is repealed on January 1, 2022. 
   SEC. 4.    Section 10759.5 is added to the  
Revenue and Taxation Code   , to read:  
   10759.5.  (a) On and after January 1, 2014, and before January 1,
2022, for purposes of determining the vehicle license fee imposed by
this part, there is excluded from the determination of market value
of a new motor vehicle propelled by alternative fuels any amount
allowed as a credit under Section 30D of the Internal Revenue Code,
relating to new qualified plug-in electric drive motor vehicles, and
any amounts received, awarded, or allowed pursuant to a state
incentive program for the purchase or lease of an alternative fuel
vehicle, as may be determined by the State Board of Equalization,
including, but not limited to, the Clean Vehicle Rebate Project, the
California Hybrid and Zero-Emission Truck and Bus Voucher Incentive
Project, and the On-Road Heavy-Duty Voucher Incentive Program under
the Carl Moyer Program. This exemption shall apply to the subsequent
payments of the vehicle license fee.
   (b) For purposes of this section:
   (1) "Motor vehicle propelled by alternative fuels" means a motor
vehicle that operates some or all of the time on a fuel other than
gasoline or diesel fuel.
   (2) "Diesel fuel" means diesel fuel as defined by Section 60022.
   (3) "Gasoline" means gasoline as defined by Section 7316.
   (c) The board shall provide to the Department of Motor Vehicles
any determinations of state incentive programs for the purchase or
lease of an alternative fuel vehicle made by the board, in a time and
manner prescribed by the board, for purposes of implementing this
section.
   (d) This section is repealed on January 1, 2022. 
   SEC. 5.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  
  SECTION 1.    Section 4799.09 of the Public
Resources Code is amended to read:
   4799.09.  As used in this chapter the following terms have the
following meanings:
   (a) "Disadvantaged community" means a community that is
disproportionately impacted by pollution and adverse socioeconomic
impacts.
   (b) "Severely disadvantaged community" means a community with a
median household income less than 60 percent of the statewide
average.
   (c) "Urban forestry" means the cultivation and management of
native or introduced trees and related vegetation in urban areas for
their present and potential contribution to the economic,
physiological, sociological, and ecological well-being of urban
society.
   (d) "Urban forest" means those native or introduced trees and
related vegetation in the urban and near-urban areas, including, but
not limited to, urban watersheds, soils and related habitats, street
trees, park trees, residential trees, natural riparian habitats, and
trees on other private and public properties.
   (e) "Urban area" means an urban place, as that term is defined by
the United States Department of Commerce, of 2,500 or more persons.