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SB-640 Taxation: disposition of sales and use tax revenues.(1989-1990)

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Senate Bill No. 640
CHAPTER 174

An act to amend Section 7102 of the Revenue and Taxation Code, relating to taxation, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.

[ Filed with Secretary of State  June 22, 1990. Approved by Governor  June 22, 1990. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 640, Alquist. Taxation: disposition of sales and use tax revenues.
Existing law, as modified by Proposition 116, which was approved by the voters at the June 5, 1990, direct primary election, provides for the disposition of state sales and use tax revenues, including the transfer to the Transportation Planning and Development Account, a trust fund in the State Transportation Fund, of specified portions of those revenues attributable to the imposition of state sales and use taxes on gasoline and on diesel fuel, with the balance to be transferred to the General Fund.
This bill would, in accordance with Chapter 105 of the Statutes of 1989, require to be additionally transferred to the Transportation Planning and Development Account in the State Transportation Fund, instead of the General Fund, all sales and use tax revenues derived at the 4 3/4% rate, resulting from increasing, after December 31, 1989, the rate of the tax imposed on gasoline under the Motor Fuel License Tax Law.
This bill would require that a specified portion of those state sales and use tax revenues attributable to the imposition of a 1/4% increase in the tax rate enacted by Chapter 14 of the Statutes of 1989 First Extraordinary Session and derived from that imposition for the period June 6, 1990, to December 31, 1990, be transferred to the Disaster Relief Fund, which is continuously appropriated for disbursements made for response to and recovery from the Loma Prieta earthquake, aftershocks, any related casualty, and for transfer to the Special Fund for Economic Uncertainties, as specified. This bill would require that the transfer to the Disaster Relief Fund be separately made for revenues attributable to the imposition of sales and use taxes on diesel fuel and the imposition of those taxes on all other tangible personal property.
Since this bill would transfer revenues to the Disaster Relief Fund, a continuously appropriated fund, the bill would make an appropriation.
This bill would declare that its provisions are severable.
This bill would declare that it is to take effect immediately as an urgency statute.
Appropriation: yes.

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


SECTION 1.

 Section 7102 of the Revenue and Taxation Code is amended to read:

7102.
 The money in the fund shall, upon order of the Controller, be drawn therefrom for refunds under this part, and pursuant to Section 1793.25 of the Civil Code, or be transferred in the following manner:
(a)  (1)  All revenues, less refunds, derived under this part at the 4 3/4-percent rate, including the imposition of sales and use taxes with respect to the sale, storage, use, or other consumption of motor vehicle fuel which would not have been received if the sales and use tax rate had been 5 percent and if motor vehicle fuel, as defined for purposes of the Motor Vehicle Fuel License Tax Law (Part 2 (commencing with Section 7301)), had been exempt from sales and use taxes, shall be estimated by the State Board of Equalization, with the concurrence of the Department of Finance, and shall be transferred quarterly to the Transportation Planning and Development Account, a trust fund in the State Transportation Fund.
(2)  All revenues, less refunds, derived under this part at the 4 3/4-percent rate, resulting from increasing after December 31, 1989, the rate of tax imposed pursuant to the Motor Vehicle Fuel License Tax Law on motor vehicle fuel, as defined for purposes of that law, shall be transferred quarterly to the Transportation Planning and Development Account, a trust fund in the State Transportation Fund.
(3)  All revenues, less refunds, derived under this part at the 4 3/4-percent rate from the imposition of sales and use taxes on fuel, as defined for purposes of the Use Fuel Tax Law (Part 3 (commencing with Section 8601)), shall be estimated by the State Board of Equalization, with the concurrence of the Department of Finance, and shall be transferred quarterly to the Transportation Planning and Development Account, a trust fund in the State Transportation Fund.
(4)  All revenues, less refunds, derived under this part from a rate of more than 4 3/4 percent pursuant to Sections 6051.1 and 6201.1 for the period December 1, 1989, to June 5, 1990, inclusive, shall be transferred to the Disaster Relief Fund created by Section 16419 of the Government Code.
(5)  All revenues, less refunds, derived under this part from a rate of more than 4 3/4 percent pursuant to Sections 6051.1 and 6201.1 for the period June 6, 1990, to December 31, 1990, inclusive, which is attributable to the imposition of sales and use taxes with respect to the sale, storage, use, or other consumption of tangible personal property other than fuel, as defined for purposes of the Use Fuel Tax Law (Part 3 (commencing with Section 8601)), shall be transferred to the Disaster Relief Fund created by Section 16419 of the Government Code.
(6)  All revenues, less refunds, derived under this part from a rate of more than 4 3/4 percent pursuant to Sections 6051.1 and 6201.1 for the period June 6, 1990, to December 31, 1990, inclusive, which is attributable to the imposition of sales and use taxes with respect to the sale, storage, use, or other consumption of fuel, as defined for purposes of the Use Fuel Tax Law (Part 3 (commencing with Section 8601)), shall be transferred to the Disaster Relief Fund created by Section 16419 of the Government Code.
(b)  The balance shall be transferred to the General Fund.
(c)  The estimates required by subdivision (a) shall be based on taxable transactions occurring during a calendar year, and the transfers required by subdivision (a) shall be made during the fiscal year that commences during that same calendar year. Transfers required by paragraphs (1), (2), and (3) of subdivision (a) shall be made quarterly.
(d)  The Legislature may amend this section, by statute passed in each house of the Legislature by rollcall vote entered in the journal, two-thirds of the membership concurring, if the statute is consistent with, and furthers the purposes of this section.

SEC. 2.

 In any provision of this act or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.

SEC. 3.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
Chapter 14 of the Statutes of 1989 First Extraordinary Session provided for a temporary increase in state sales and use taxes to fund disaster relief efforts associated with the Loma Prieta earthquake in northern California. Chapter 105 of the Statutes of 1989 provided for a transfer to a special fund account of sales and use tax revenues derived from the imposition of the 4 3/4-percent rate, resulting from specified increases, operative after December 31, 1989, in the rate of tax imposed on gasoline pursuant to the Motor Vehicle Fuel License Tax Law. Proposition 116, approved by the voters at the June 5, 1990, direct primary election, made changes to the statute allocating sales and use tax revenues so that, among other things, on and after June 6, 1990, the revenues affected by those chapters, will be transferred to the General Fund instead of the Disaster Relief Fund created by Chapter 14 of the Statutes of 1989 First Extraordinary Session or the Transportation Planning and Development Account as provided in Chapter 105 of the Statutes of 1989. In order to restore the previous disposition of those revenues at the earliest possible time, it is necessary that this act go into immediate effect.