Bill Text: CA SB546 | 2023-2024 | Regular Session | Amended

California Senate Bill 546

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

Bill Title: Sales and Use Tax Law: exemption: dedicated snow removal vehicles.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2024-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB546 Detail]

Download: California-2023-SB546-Amended.html

Amended IN Senate March 21, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 546

Introduced by Senator Alvarado-Gil

February 15, 2023

An act to ~~amend Section 75.10 of~~ add and repeal Section 6359.5 of the Revenue and Taxation Code, relating to ~~taxation.~~ taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL'S DIGEST

SB 546, as amended, Alvarado-Gil. ~~Property taxes: base year values.~~ Sales and Use Tax Law: exemption: public safety first responder vehicles.

Existing state 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 of, 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 sale of, or the storage, use, or consumption of, items and materials when used to modify a vehicle for physically handicapped persons.
This bill would, until January 1, 2028, exempt from those taxes the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, a public safety first responder vehicle, as defined, purchased by a local public agency and any equipment required on those vehicles purchased by a local public agency.
Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would state the intent of the Legislature to comply with those provisions.
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 laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws.
Existing law requires the state to 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.
Existing law provides that whenever a change in ownership occurs or new construction, as specified, is completed, the property changing ownership or new construction shall be appraised at its full cash value, except as otherwise provided, on the date the change in ownership occurs or the new construction is completed.
~~This bill would make nonsubstantive changes to those provisions.~~

Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 6359.5 is added to the Revenue and Taxation Code, to read:

6359.5.
(a) There are exempted from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, a public safety first responder vehicle purchased by a local public agency and any equipment required on a public safety first responder vehicle purchased by a local public agency.
(b) As used in this section:
(1) “Local public agency” means a city, county, municipal corporation, district, or public authority located within this state that provides, or may provide, emergency response services.
(2) “Public safety first responder vehicle” means a vehicle purchased for use by an employee of a local public agency to provide emergency response services.
(c) It is the intent of the Legislature to comply with Section 41.
(d) This section shall become inoperative on January 1, 2028, and as of that date is repealed.

SEC. 2.
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.
This act provides for a tax levy within the meaning of Article IV of the California 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.

SECTION 1.Section 75.10 of the Revenue and Taxation Code is amended to read:
75.10.
(a)Commencing with the 1983–84 assessment year and each assessment year thereafter, whenever a change in ownership occurs or new construction resulting from actual physical new construction on the site is completed, the assessor shall appraise the property changing ownership or the new construction at its full cash value, except as provided in Section 68 and subdivision (b) of this section, on the date the change in ownership occurs or the new construction is completed. The value so determined shall be the new base year value of the property or the new construction.
(b)For purposes of this chapter, “actual physical new construction” includes the removal of a structure from land. The new base year value of the remaining property, after the removal of the structure, shall be determined in the same manner as provided in subdivision (b) of Section 51.
~~(c)For purposes of this section, “actual physical new construction” includes the discovery of previously unknown reserves of oil or gas.~~