Bill Text: CA SB321 | 2015-2016 | Regular Session | Amended
Bill Title: Motor vehicle fuel taxes: rates: adjustments.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2016-11-30 - Died on the inactive file. [SB321 Detail]
Download: California-2015-SB321-Amended.html
BILL NUMBER: SB 321 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 18, 2015
AMENDED IN SENATE MAY 27, 2015
AMENDED IN SENATE APRIL 23, 2015
AMENDED IN SENATE MARCH 26, 2015
INTRODUCED BY Senator Beall
FEBRUARY 23, 2015
An act to amend Section 7360 of the Revenue and Taxation Code,
relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 321, as amended, Beall. Motor vehicle fuel taxes: rates:
adjustments.
Existing law, as of July 1, 2010, exempts the sale of, and the
storage, use, or other consumption of, motor vehicle fuel from
specified sales and use taxes and increases the excise tax on motor
vehicle fuel, as provided.
Existing law requires the State Board of Equalization, for the
2011-12 fiscal year and each fiscal year thereafter, on or before
March 1 of the fiscal year immediately preceding the applicable
fiscal year, to adjust the motor vehicle fuel tax rate in a manner as
to generate an amount of revenue equal to the amount of revenue loss
attributable to the sales and use tax exemption on motor vehicle
fuel, based on estimates made by the board. Existing law also
requires, in order to maintain revenue for each year, the board to
take into account actual net revenue gain or loss for the fiscal year
ending prior to the rate adjustment date. Existing law requires this
adjusted rate to be effective during the state's next fiscal year.
This bill for the 2015-16 2016-
17 fiscal year and each fiscal year thereafter would, instead
require the board, on or before July 1, 2015, or
board on March 1 of the fiscal year immediately preceding
the applicable fiscal year, as specified, to adjust the rate in a
manner as to generate an amount of revenue equal to the amount of
revenue loss attributable to the exemption, based on estimates made
by the board that reflect the combined average of the actual fuel
price over the previous 4 fiscal years and the estimated fuel price
for the current fiscal year, and continuing to take into account
adjustments required by existing law to maintain revenue neutrality
for each year.
This bill would also authorize, if, due to clear changes in either
fuel prices or consumption in the state, the board makes a
determination that the amount of revenue being generated by the motor
vehicle fuel tax will be significantly different than the estimates
made by the board, the board to adjust the rate more frequently than
annually, but no more frequently than every 6 months in order to
reduce the potential volatility of the revenues.
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 7360 of the Revenue and Taxation Code is
amended to read:
7360. (a) (1) A tax of eighteen cents ($0.18) is hereby imposed
upon each gallon of fuel subject to the tax in Sections 7362, 7363,
and 7364.
(2) If the federal fuel tax is reduced below the rate of nine
cents ($0.09) per gallon and federal financial allocations to this
state for highway and exclusive public mass transit guideway purposes
are reduced or eliminated correspondingly, the tax rate imposed by
paragraph (1), on and after the date of the reduction, shall be
recalculated by an amount so that the combined state rate under
paragraph (1) and the federal tax rate per gallon equal twenty-seven
cents ($0.27).
(3) If any person or entity is exempt or partially exempt from the
federal fuel tax at the time of a reduction, the person or entity
shall continue to be so exempt under this section.
(b) (1) On and after July 1, 2010, in addition to the tax imposed
by subdivision (a), a tax is hereby imposed upon each gallon of motor
vehicle fuel, other than aviation gasoline, subject to the tax in
Sections 7362, 7363, and 7364 in an amount equal to seventeen and
three-tenths cents ($0.173) per gallon.
(2) (A) For the 2011-12 fiscal year to the 2014-15
2015- 16 fiscal year, inclusive, the
board shall, on or before March 1 of the fiscal year immediately
preceding the applicable fiscal year, adjust the rate in paragraph
(1) in that manner as to generate an amount of revenue that will
equal the amount of revenue loss attributable to the exemption
provided by Section 6357.7, based on estimates made by the board, and
that rate shall be effective during the state's next fiscal year.
(B) For the 2015-16 fiscal year, the board shall, on or before
July 1, 2015, adjust the rate in paragraph (1) in that manner as to
generate an amount of revenue that will equal the amount of revenue
loss attributable to the exemption provided by Section 6357.7, based
on estimates made by the board that reflect the combined average of
the actual fuel price over the previous four fiscal years and the
estimated fuel price for the current fiscal year, and that rate shall
be effective during the 2015-16 fiscal year.
(C)
(B) For the 2016-17 fiscal year and each fiscal year
thereafter, the board shall, on or before March 1 of the fiscal year
immediately preceding the applicable fiscal year, adjust the rate in
paragraph (1) in that manner as to generate an amount of revenue that
will equal the amount of revenue loss attributable to the exemption
provided by Section 6357.7, based on estimates made by the board that
reflect the combined average of the actual fuel price over the
previous four fiscal years and the estimated fuel price for the
current fiscal year, and that rate shall be effective during the
state's next fiscal year.
(3) In order to maintain revenue neutrality for each year,
beginning with the rate adjustment on or before March 1, 2012, the
adjustment under paragraph (2) shall also take into account the
extent to which the actual amount of revenues derived pursuant to
this subdivision and, as applicable, Section 7361.1, the revenue loss
attributable to the exemption provided by Section 6357.7 resulted in
a net revenue gain or loss for the fiscal year ending prior to the
rate adjustment date on or before March 1.
(4) If, due to clear changes in either fuel prices or consumption
in the state, the board makes a determination that the amount of
revenue being generated by the tax imposed by this section will be
significantly different than the estimates made by the board, the
board may adjust the rate in paragraph (1) more frequently than
annually, but no more frequently than every six months in order to
reduce the potential volatility of the revenues.
(5)
(4) The intent of paragraphs (2) and (3) is to ensure
that Chapter 6 of the Statutes of 2011, which added this subdivision
and Section 6357.7, does not produce a net revenue gain in state
taxes.
(6)
(5) It is the intent of the Legislature that the
amendments made by the act adding this paragraph does not produce a
net revenue gain in state taxes.
