Bill Text: CA SB560 | 2013-2014 | Regular Session | Amended
Bill Title: Disaster relief: sales and use tax: exemption: income taxes: gross income: exclusion.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-02-03 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB560 Detail]
Download: California-2013-SB560-Amended.html
BILL NUMBER: SB 560 AMENDED
BILL TEXT
AMENDED IN SENATE JANUARY 15, 2014
AMENDED IN SENATE JANUARY 6, 2014
AMENDED IN SENATE APRIL 1, 2013
INTRODUCED BY Senator Anderson
FEBRUARY 22, 2013
An act to add Sections 6357.9, 17137, and 24311 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 560, as amended, Anderson. Disaster relief: sales and use tax:
exemption: income taxes: gross income: exclusion.
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. Those laws provide various exemptions from those taxes.
This bill would exempt from those taxes, on and after January 1,
2015, the gross receipts from the sale of, and the storage, use, or
other consumption of, tangible personal property purchased during a
disaster period for use by a qualified person to be used primarily
for the performance of disaster- or emergency-related work in this
state, as provided. The bill would require the purchaser to furnish
the retailer with an exemption certificate, as specified.
The Personal Income Tax Law and the Corporation Tax Law impose
taxes on taxpayers measured by the amount of the taxpayer's
taxable income for the taxable year, but exclude certain
items of income from the computation of tax.
This bill would, under both laws, for taxable years beginning on
and after January 1, 2015, exclude from income amounts received by a
qualified person taxpayer , as defined,
for the performance of disaster- or emergency-related work in this
state that is performed during the disaster period, as provided.
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 act provides for a tax levy within the meaning of Article IV
of the Constitution and shall go into immediate effect.
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. The Legislature finds and declares all of the
following:
(a) During times of storm, flood, fire, earthquake, hurricane, or
other disaster or emergency, many companies bring in resources and
personnel from other states throughout the United States on a
temporary basis to expedite the often enormous and overwhelming task
of cleaning up, restoring and repairing damaged buildings, equipment,
and property, or even deploying or building new replacement
facilities in the state.
(b) This may involve the need for out-of-state companies,
including out-of-state affiliates of companies based in the state to
bring in resources, property or personnel that previously have had no
connection to the state, to perform activity in the state including,
but not limited to, repairing, renovating, installing, building,
rendering services, or other business activities and for which
personnel may be located in the state for extended periods of time to
perform such activities.
(c) During such time of operating in the state on a temporary
basis solely for purposes of helping the state recover from the
disaster or emergency, these companies and individual employees
should not be burdened by any requirements for income taxes as a
result of such activities in the state for a temporary period.
(d) The state's nexus thresholds are intended for businesses in
the state as part of the conduct of regular business operations and
should not be directed at companies coming into the state on a
temporary basis to provide help and assistance in response to a
declared state disaster or emergency.
(e) To ensure that companies may focus on quick response to the
needs of the state and its citizens during a declared state disaster
or emergency it is appropriate for the Legislature to deem that such
activity for a reasonable period of time during and after the
disaster or emergency for repairing and restoration of the often
devastating damage to property and infrastructure in the state shall
not establish doing business in the state for purposes of state
income taxes.
SEC. 2. Section 6357.9 is added to the Revenue and Taxation Code,
to read:
6357.9. (a) On and after January 1, 2015, there are exempted from
the taxes imposed by this part the gross receipts from the sale of,
and the storage, use, or other consumption of, tangible personal
property purchased during a disaster period for use by a qualified
person to be used primarily for the performance of disaster- or
emergency-related work in this state.
(b) For purposes of this section, all of the following shall
apply:
(1) "Declared state disaster or emergency" means a disaster or
emergency event for which the Governor has proclaimed a state of
emergency or a major disaster or emergency for which the President of
the United States has declared to exist in this state.
(2) "Disaster- or emergency-related work" means repairing,
renovating, installing, building, or rendering services or other
business activities that relate to infrastructure that has been
damaged, impaired, or destroyed as a result of a declared state
disaster or emergency.
(3) "Disaster period" means the period of time that begins no
later than 10 days following the Governor's proclamation of a state
of emergency or the President's declaration of a major disaster or
emergency in this state, whichever occurs first, and that extends for
a period of 60 calendar days following the termination of
the declared disaster or emergency as proclaimed or
for any period determined by the Governor or by
concurrent resolution by the Legislature pursuant to Section 8629 of
the Government Code or the President of the United States, whichever
occurs first his or her designee .
(4) "Infrastructure" means property and equipment owned or used by
communication networks, gas and electric distribution systems, water
pipelines, and public roads and bridges, and related support
facilities that service multiple customers or citizens, including,
but not limited to, real and personal property, including buildings,
offices, power lines, poles, pipes, structures, and equipment.
(5) "Local agency" means a local agency as defined in Section
8680.2 of the Government Code.
(6) "Primarily" means 50 percent or more of the time.
(7) "Qualified person" means a person, as defined in Section 6005,
but excluding an individual, that meets all of the following:
(A) Prior to the commencement date of the declared state disaster
or emergency, as specified in the Governor's proclamation of a state
of emergency or the President's declaration of a major disaster or
emergency in this state, was not doing business in this state as
defined in Section 23101.
(B) Is doing business in this state as defined in Section 23101
after the commencement date of the declared state disaster or
emergency, as specified in the Governor's proclamation of a state of
emergency or the President's declaration of a major disaster or
emergency in this state , upon the request of a registered
business or by a state agency or a local agency, for the purpose of
performing disaster- or emergency-related work .
(8) "Registered business" means a business entity that is
registered to do business in this state prior to the commencement
date of the declared state disaster or emergency, as specified in the
Governor's proclamation of a state of emergency or the President's
declaration of a major disaster or emergency in this state.
(9) "State agency" means a state agency as defined in Section
8680.8 of the Government Code.
(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 the exemption certificate to
the board upon request. The exemption certificate shall contain the
sales price of the qualified tangible personal property.
SEC. 3. Section 17137 is added to the Revenue and Taxation Code,
to read:
17137. (a) For taxable years beginning on and after January 1,
2015, gross income shall not include any amount received by a
qualified person taxpayer for the
performance of disaster- or emergency-related work in this state that
is performed during the disaster period.
(b) For purposes of this section, all of the following shall
apply:
(1) "Declared state disaster or emergency" means a disaster or
emergency event for which the Governor has proclaimed a state of
emergency or a major disaster or emergency for which the President of
the United States has declared to exist in this state.
(2) "Disaster- or emergency-related work" means repairing,
renovating, installing, building, or rendering services or other
business activities that relate to infrastructure that has been
damaged, impaired, or destroyed as a result of a declared state
disaster or emergency.
(3) "Disaster period" means the period of time that begins no
later than 10 days following the Governor's proclamation of a state
of emergency or the President's declaration of a major disaster or
emergency in this state, whichever occurs first, and that extends for
a period of 60 calendar days following the termination of
the declared disaster or emergency as proclaimed or
for any period determined by the Governor or by
concurrent resolution by the Legislature pursuant to Section 8629 of
the Government Code or the President of the United States, whichever
occurs first his or her designee .
(4) "Infrastructure" means property and equipment owned or used by
communication networks, gas and electric distribution systems, water
pipelines, and public roads and bridges, and related support
facilities that service multiple customers or citizens, including,
but not limited to, real and personal property, including buildings,
offices, power lines, poles, pipes, structures, and equipment.
(5) "Local agency" means a local agency as defined in Section
8680.2 of the Government Code.
(6) "Qualified person" taxpayer"
means a limited partnership, limited liability partnership, and
limited liability company that meets both of the following:
(A) Prior to the commencement date of the declared state disaster
or emergency, as specified in the Governor's proclamation of a state
of emergency or the President's declaration of a major disaster or
emergency in this state, was not doing business in this state as
defined in Section 23101.
(B) Is doing business in this state as defined in Section 23101
after the commencement date of the declared state disaster or
emergency, as specified in the Governor's proclamation of a state of
emergency or the President's declaration of a major disaster or
emergency in this state , upon the request of a registered
business or by a state agency or a local agency, for the purpose of
performing disaster- or emergency-related work .
(7) "Registered business" means a business entity that is
registered to do business in this state prior to the commencement
date of the declared state disaster or emergency, as specified in the
Governor's proclamation of a state of emergency or the President's
declaration of a major disaster or emergency in this state.
(8) "State agency" means a state agency as defined in Section
8680.8 of the Government Code.
SEC. 4. Section 24311 is added to the Revenue and Taxation Code,
to read:
24311. (a) For taxable years beginning on and after January 1,
2015, gross income shall not include any amount received by a
qualified person taxpayer for the
performance of disaster- or emergency-related work in this state that
is performed during the disaster period.
(b) For purposes of this section, all of the following shall
apply:
(1) "Declared state disaster or emergency" means a disaster or
emergency event for which the Governor has proclaimed a state of
emergency or a major disaster or emergency for which the President of
the United States has declared to exist in this state.
(2) "Disaster- or emergency-related work" means repairing,
renovating, installing, building, or rendering services or other
business activities that relate to infrastructure that has been
damaged, impaired, or destroyed as a result of a declared state
disaster or emergency.
(3) "Disaster period" means the period of time that begins no
later than 10 days following the Governor's proclamation of a state
of emergency or the President's declaration of a major disaster or
emergency in this state, whichever occurs first, and that extends for
a period of 60 calendar days following the termination of
the declared disaster or emergency as proclaimed or
for any period determined by the Governor or by
concurrent resolution by the Legislature pursuant to Section 8629 of
the Government Code or the President of the United States, whichever
occurs first his or her designee .
(4) "Infrastructure" means property and equipment owned or used by
communication networks, gas and electric distribution systems, water
pipelines, and public roads and bridges, and related support
facilities that service multiple customers or citizens, including,
but not limited to, real and personal property, including buildings,
offices, power lines, poles, pipes, structures, and equipment.
(5) "Local agency" means a local agency as defined in Section
8680.2 of the Government Code.
(6) "Qualified person" taxpayer"
means a corporation that meets all of the following:
(A) Prior to the commencement date of the declared state disaster
or emergency, as specified in the Governor's proclamation of a state
of emergency or the President's declaration of a major disaster or
emergency in this state, was not doing business in this state as
defined in Section 23101.
(B) Is doing business in this state as defined in Section 23101
after the commencement date of the declared state disaster or
emergency, as specified in the Governor's proclamation of a state of
emergency or the President's declaration of a major disaster or
emergency in this state , upon the request of a registered
business or by a state agency or a local agency, for the purpose of
performing disaster- or emergency-related work .
(7) "Registered business" means a business entity that is
registered to do business in this state prior to the commencement
date of the declared state disaster or emergency, as specified in the
Governor's proclamation of a state of emergency or the President's
declaration of a major disaster or emergency in this state.
(8) "State agency" means a state agency as defined in Section
8680.8 of the Government Code.
SEC. 5. 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. 6. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
