Today's Law As Amended


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AB-2114 Taxation: qualified heavy equipment.(2013-2014)



As Amends the Law Today


SECTION 1.

 Section 97.83 is added to the Revenue and Taxation Code, to read:

97.83.
 (a) (1) Notwithstanding any other law, for the 2015–16 fiscal year and for each fiscal year thereafter, the auditor of each county shall do both of the following:
(A) Increase the total amount of ad valorem property tax revenue that is otherwise required to be allocated among the county and each city and special district in the county by the qualified heavy equipment reimbursement amount. The qualified heavy equipment reimbursement amount shall be allocated among the county, cities, and special districts in proportion to the amounts of ad valorem property tax revenue otherwise allocated among those local agencies.
(B) Decrease the total amount of ad valorem property tax revenue that is otherwise required to be allocated to the county’s Educational Revenue Augmentation Fund by the qualified heavy equipment reimbursement amount.
(2) (A) In the event that the county’s Educational Revenue Augmentation Fund does not have sufficient funds to offset the qualified heavy equipment reimbursement amount, the auditor shall, to the extent that those funds are insufficient, decrease the total amount of ad valorem property tax that is allocated to local school districts providing instruction for kindergarten and grades 1 to 12, inclusive, that are excess tax school entities, in proportion to their allocations of ad valorem property tax revenue allocated to school districts providing instruction for kindergarten and grades 1 to 12, inclusive, in the county, and allocate that amount among the county, cities, and special districts in proportion to the amounts of ad valorem property tax revenues otherwise allocated among those local agencies.
(B) In the event that the amount of ad valorem property tax revenues allocated to the Educational Revenue Augmentation Fund, together with the allocations to those school districts providing instruction for kindergarten and grades 1 to 12, inclusive, that are basic aid school districts, is insufficient to offset the qualified heavy equipment reimbursement amount, the auditor may also decrease the amount of ad valorem property tax revenues allocated to school districts providing instruction for kindergarten and grades 1 to 12, inclusive, that are not excess tax school entities, and allocate that amount among the county, cities, and special districts in proportion to the amounts of ad valorem property tax revenue otherwise allocated among those local agencies.
(b) For purposes of this section, “qualified heavy equipment reimbursement amount” means the total amount of ad valorem property tax revenue received by the county and each city and special district in the county in the 2013–14 fiscal year from renters of qualified heavy equipment, as defined in Part 11 (commencing with Section 5500) of Division 2.
(c) For the 2016–17 fiscal year and for each fiscal year thereafter, ad valorem property tax revenue allocations made pursuant to Sections 96.1 and 96.5, or any successor to either of those provisions, shall not incorporate the allocation adjustments made by this section.

SEC. 2.

 Part 11 (commencing with Section 5500) is added to Division 1 of the Revenue and Taxation Code, to read:

PART 11. Taxation of Qualified Heavy Equipment

5500.
 For purposes of this part, all of the following definitions shall apply:
(a) “Rental price” means the total amount of the charge for renting the qualified heavy equipment, excluding any separately stated charges that are not rental charges, including, but not limited to, separately stated charges for delivery and pickup fees, damage waivers, environmental mitigation fees, or use taxes.
(b) (1) “Qualified heavy equipment” means any construction, earthmoving, or industrial equipment that is mobile rented by a qualified renter, including attachments for the equipment or other ancillary equipment, including, but not limited to, all of the following:
(A) A self-propelled vehicle that is not designed to be driven on the highway.
(B) Industrial electrical generation equipment.
(C) Industrial lift equipment.
(D) Industrial material equipment.
(E) Equipment used in shoring, shielding, and ground trenching.
(F) Equipment or vehicles not subject to the fee imposed pursuant to the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2).
(2) Qualified heavy equipment is mobile if the qualified heavy equipment is not intended to be permanently affixed to real property for the purpose of using the qualified heavy equipment for its intended use. Qualified heavy equipment is mobile if it is intended to be moved among worksites as needed.
(c) “Qualified renter” means a renter that satisfies all of the following:
(1) The principal business of the renter is the short-term rental of qualified heavy equipment.
(2) Is engaged in a line of business described in Code 532412 of the North American Industry Classification System published by the United States Office of Management and Budget, 2012 edition.
(d) “Renting” or “rent” means a rental for a period of less than 365 days or for an undefined period.
5501.
 (a) On and after July 1, 2015, there is hereby imposed a tax on every qualified renter for the privilege of renting qualified heavy equipment in this state at the rate of .75 percent of the rental price from the renting of qualified heavy equipment.
(b) The qualified renter shall pay and remit the tax to the board as required by this part.
(c) The board shall administer and collect the tax imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2). For purposes of this part, the references in the Fee Collection Procedures Law to “fee” shall include the tax imposed by this part, and references to “feepayer” shall include a person liable for the payment of the taxes imposed by this part and collected pursuant to that law.
5502.
 Every qualified renter shall register with the board. Every application for registration shall be made upon a form prescribed by the board and shall set forth the name under which the applicant transacts or intends to transact business, the location of its place or places of business, and other information as the board may require. An application for an account shall be authenticated in a form or pursuant to methods as may be prescribed by the board.
5503.
 The board may prescribe, adopt, and enforce regulations relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
5504.
 The taxes imposed by this part are due and payable to the board quarterly on or before the last day of the month next succeeding each quarterly period.
5505.
 (a) On or before the last day of the month following each quarterly period of three months, a return for the preceding quarterly period shall be filed using electronic media with the board.
(b) The board may prescribe those forms and reporting requirements as are necessary to implement the tax.
(c) Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the board.
5506.
 All revenues, interest, penalties, and other amounts collected pursuant to this part, less refunds and the board’s costs of administration, shall be deposited in the General Fund.
5507.
 (a) For the 2015–16 fiscal year and for each fiscal year thereafter, the tax imposed pursuant to this part shall be in lieu of any property tax on qualified heavy equipment subject to taxation pursuant to this part.
(b) Qualified heavy equipment of a business that is not for rent shall remain subject to any applicable property taxes.
SEC. 3.
 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 4.
  Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.