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AB-3170 Sales and use taxes: exemptions: water efficiency. (2017-2018)

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Date Published: 04/16/2018 09:00 PM
AB3170:v98#DOCUMENT

Amended  IN  Assembly  April 16, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 3170


Introduced by Assembly Member Friedman

February 16, 2018


An act to add Section 6380.2 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 3170, as amended, Friedman. Sales and use taxes: exemptions: water efficiency.
Existing sales and use tax laws impose taxes 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, and provides various exemptions from the taxes imposed by those laws. Under existing law, a sale or purchase of tangible personal property pursuant to a layaway agreement or raincheck, or under certain conditions, is considered a sale or purchase only when both payment and delivery are complete.
This bill would would, until January 1, 2024, exempt from those taxes the gross receipts from the sale of, and the storage, use, or other consumption of, qualified water efficiency products sold or purchased during the 3-day period beginning at 12:01 a.m. on the Saturday preceding the last Monday in March, and ending at 11:59 p.m. on the following Monday in March, or for which a layaway agreement is entered into, a raincheck is issued, or other specified orders are placed, during this period, as specified.
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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 6380.2 is added to the Revenue and Taxation Code, to read:

6380.2.
 (a) 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 qualified water efficiency product that is any of the following:
(1) Sold or purchased during the qualified exemption period.
(2) Sold or purchased pursuant to a layaway agreement that is entered into, and for which the purchaser has made a deposit of at least 10 percent of the gross receipts from the sale or purchase, during the qualified exemption period.
(3) Sold or purchased pursuant to a raincheck issued for the product during the qualified exemption period. This paragraph does not require any retailer to issue rainchecks.
(b) For purposes of this section, the following terms have the following meanings:
(1) “Layaway” has the same meaning as defined in Section 1749.1 of the Civil Code.
(2) “Qualified water efficiency product” includes, but is not limited to, means any of the following tangible personal property:
(A) A soaker or drip-irrigation hose.

(B)A moisture control for a sprinkler or irrigation system.

(C)Mulch.

(D)

(B) Soil moisture-based control technologies.
(C) Weather-based irrigation controllers.
(D) Mulch, compost, or cocompost products including soil amendments, erosion controls, soil toppings, ground covers, weed suppressants, and organic materials used for water conservation.
(E) A rain barrel or an alternative rain and moisture collection system. system with a capacity of 100 gallons or more.

(E)

(F) A permeable ground cover surface surface, other than living turf grass, that allows water to reach underground basins, aquifers, or water collection points.

(F)

(G) Low-water use plants as determined by the Water Use Classification of Landscape Species (WUCOLS).
(H) A Water Sense WaterSense product.
(3) “Qualified exemption period” means the three-day period beginning at 12:01 a.m. on the Saturday preceding the last Monday in March, and ending at 11:59 p.m. on the following Monday in March.
(4) “Raincheck” means a document issued to a customer when a product is out of stock that allows the customer to purchase the product at a later time at the product’s price at the time the document is issued.
(5) “WaterSense product” means a product that has been designated as a WaterSense certified product under the WaterSense program operated by the United States Environmental Protection Agency, or a similar successor program.
(c) This section shall remain in effect only 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.