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

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Date Published: 04/03/2019 09:00 PM
AB745:v98#DOCUMENT

Amended  IN  Assembly  April 03, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 745


Introduced by Assembly Member Petrie-Norris
(Coauthors: Assembly Members Friedman and Ting)

February 19, 2019


An act to add and repeal Section 6377.5 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 745, as amended, Petrie-Norris. Sales and use taxes: exemption: retail hydrogen vehicle fuel.
Existing 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. Those laws provide various exemptions from those taxes.
This bill, on and after January 1, 2020, and before January 1, 2024, would exempt from those taxes 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, as defined.
The bill would make findings specifying the goals, purposes, and objectives of this tax exemption and would detail the performance indicators for the Legislature to use when measuring whether the exemption meets these goals, purposes, and objectives.
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 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.

(c)

(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.