Today's Law As Amended


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AB-745 Sales and use taxes: exemption: retail hydrogen vehicle fuel.(2019-2020)



As Amends the Law Today


SECTION 1.

 Section 6377.5 is added to the Revenue and Taxation Code, to read:

6377.5.
 (a) On and after January 1, 2020, and before January 1, 2024, 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, retail hydrogen vehicle fuel.
(b) For purposes of this section, both of the following definitions shall apply:
(1) “Fuel cell” means a device that directly or indirectly creates electricity through an electrochemical process using hydrogen or hydrogen-rich fuel and oxygen or another oxidizing agent.
(2) “Retail hydrogen vehicle fuel” means hydrogen sold in a retail setting, either exclusively or concurrently with other motor vehicle fuels, for any zero-emission motor vehicle that uses hydrogen in a fuel cell for some or all of its propulsion.
(c) The Legislature finds and declares all of the following with respect to the exemption provided by subdivision (a):
(1) The specific goals, purposes, and objectives of the exemption are to create immediate parity in the taxation of zero-emission vehicle fuels and to correct an inconsistent imposition of taxes caused by emerging technologies.
(2) The detailed performance indicators for the Legislature to use when measuring whether the exemption meets those specific goals, purposes, and objectives are as follows:
(A) The number of people purchasing retail hydrogen vehicle fuel annually.
(B) The amount of retail hydrogen vehicle fuel purchased annually.
(C) The annual increase in the amount of hydrogen vehicle fuel purchased.
(d) This section shall remain in effect until January 1, 2024, and as of that date is repealed.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.