Bill Text: CA SB952 | 2019-2020 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Sales and use taxes: exemption: backup electrical generators: deenergization events.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2020-06-29 - Referred to Com. on REV. & TAX. [SB952 Detail]
Download: California-2019-SB952-Introduced.html
Bill Title: Sales and use taxes: exemption: backup electrical generators: deenergization events.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2020-06-29 - Referred to Com. on REV. & TAX. [SB952 Detail]
Download: California-2019-SB952-Introduced.html
CALIFORNIA LEGISLATURE—
2019–2020 REGULAR SESSION
Senate Bill
No. 952
| Introduced by Senator Nielsen |
February 10, 2020 |
An act to amend Section 8385 of the Public Utilities Code, and to add Section 6356.3 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 952, as introduced, Nielsen.
Sales and use taxes: exemption: backup electrical resources: deenergization events.
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 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.
This bill, on and after January 1, 2021, would provide an exemption from those taxes with respect to the sale of, or the storage, use, or consumption of, a backup electrical resource, as defined, that is purchased for exclusive use by a city, county, special district, or other entity of local government during deenergization events, as defined.
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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 8385 of the Public Utilities Code is amended to read:8385.
(a) For purposes of this chapter, the following shall apply:(1) “Backup electrical resource” means portable or fixed sources for generation of electricity and energy storage systems, as defined in Section 2835, that can service electrical supply needs within the area undergoing a deenergization event.
(1)
(2) “Compliance
period” means a period of approximately one year.
(3) “Deenergization event” means the proactive interruption of electrical service for the purpose of mitigating or avoiding the risk of causing a wildfire.
(2)
(4) “Electrical cooperative” has the same meaning as defined in Section 2776.
(b) The commission shall supervise an electrical corporation’s compliance with the requirements of this chapter pursuant to the Public Utilities Act (Part 1
(commencing with Section 201) of Division 1). Nothing in this chapter affects the commission’s authority or jurisdiction over an electrical cooperative or local publicly owned electrical corporation.
electric utility.
SEC. 2.
Section 6356.3 is added to the Revenue and Taxation Code, to read:6356.3.
(a) For purposes of this section, the following terms have the following meanings:(1) “Backup electrical resource” and “deenergization event” have the same meanings as defined in Section 8385 of the Public Utilities Code.
(2) “Electrical corporation” means an electrical corporation, as defined in Section 218 of the Public Utilities Code, that has been authorized by the Public Utilities Commission to undertake deenergization events pursuant to a Wildfire Mitigation Plan approved by the commission pursuant to Section 8386 of the Public Utilities Code.
(b) On and after January 1, 2021, 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 backup electrical resource that is purchased for exclusive use by a city, county, special district, or other entity of local government during deenergization events.
SEC. 3.
(a) For the purposes of complying with the intent of Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following:(1) Public agencies, including local governments, carry out critical services on behalf of Californians.
(2) During deenergization events, public agencies are expected to perform their functions regardless of access to electricity and some public agencies are required to perform their functions due to potential penalties or legal liabilities.
(3) Public agencies are not in the business of energy generation or storage, but must deepen
their experience in that role by necessity as electrical corporations increasingly implement deenergization events.
(4) More affordable equipment for the purpose of backup electricity generation will ensure that residents represented or served by these public agencies are not unduly burdened by costs.
(5) It is the intent of the Legislature to facilitate the purchase of backup electricity generation equipment by public agencies in order to protect public interests, avoid liability, and enhance public health and safety.
(b) Any public agency purchasing equipment that qualifies for the sales and use tax exemption provided by Section 6356.3 of the Revenue and Taxation Code, as added by Section 2 of this act, shall submit a report, in compliance with Section 9795 of the Government Code, to the Senate Committee on
Governance and Finance within 30 days of the purchase of that equipment. The report shall contain information identifying the public agency, the purchase price of the equipment, and the amount of state and local sales and use taxes exempted by Section 6356.3 of the Revenue and Taxation Code, as added by this act.
