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AB-906 Zero-emission trucks: tax and fee exemptions.(2021-2022)

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Date Published: 02/17/2021 09:00 PM
AB906:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 906


Introduced by Assembly Member Carrillo
(Coauthor: Senator Archuleta)

February 17, 2021


An act to add Sections 6376.8 and 10790 to the Revenue and Taxation Code, and to add Section 9108 to the Vehicle Code, relating to zero-emission vehicles.


LEGISLATIVE COUNSEL'S DIGEST


AB 906, as introduced, Carrillo. Zero-emission trucks: tax and fee exemptions.
(1) 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 would exempt from those taxes, on and after January 1, 2022, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, fuel for the operation of a zero-emission medium- or heavy-duty truck that is the subject of a lease entered into after July 1, 2022, with specified characteristics.
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.
(2) The Vehicle License Fee Law establishes, in lieu of any ad valorem property tax upon vehicles, an annual license fee for any vehicle subject to registration in this state at a specified percentage of the market value of that vehicle. Existing law exempts specified types of vehicles from the vehicle license fee.
This bill would exempt from the vehicle license fee a zero-emission medium- or heavy-duty truck that is the subject of a lease entered into after July 1, 2022, with specified characteristics.
(3) Existing law requires a registration fee to be paid to the Department of Motor Vehicles for the registration of each vehicle or trailer coach of a type subject to registration under the Vehicle Code, except those vehicles that are expressly exempted from the payment of registration fees. Under existing law, in addition to vehicle registration fees, an annual fee based upon vehicle weight is imposed on commercial motor vehicles.
This bill would exempt from those registration fees and weight fees a zero-emission medium- or heavy-duty truck that is the subject of a lease entered into after July 1, 2022, with specified characteristics.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) Medium- and heavy-duty hydrogen fuel cell electric and battery electric vehicles are electrically driven vehicles that do not emit greenhouse gases, criteria air pollutants, or toxic air contaminants.
(b) Medium- and heavy-duty hydrogen fuel cell electric vehicles and battery electric vehicles are commercially available replacement technologies for conventional, petroleum-fueled vehicles in medium- and heavy-duty applications.
(c) Medium- and heavy-duty hydrogen fuel cell electric vehicles and battery electric vehicles will be critical components in achieving the goals outlined for medium- and heavy-duty vehicles in Executive Order No.-79-20.
(d) Medium- and heavy-duty hydrogen fuel cell electric vehicles and battery electric vehicles will be critical components in (1) achieving the state’s air quality and climate change goals through successful implementation of laws and regulations, including, but not limited to, the Innovative Clean Transit regulations (Article 4.3 (commencing with Section 2023) of Chapter 1 of Division 3 of Title 13 of the California Code of Regulations), Zero-Emission Airport Shuttle Regulation (Subarticle 14 (commencing with Section 95690.1) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations), General Requirements for In-Use Off-Road Diesel-Fueled Fleets (Article 4.8 (commencing with Section 2449) of Chapter 9 of Division 3 of Title 13 of the California Code of Regulations), commercial harbor craft regulations (Section 2299.5 of Title 13 of, and Section 93118.5 of Title 17 of, the California Code of Regulations), and Advanced Clean Trucks Regulation, as adopted by the state board pursuant to Resolution 20-19 on June 25, 2020, and (2) reducing emissions of greenhouse gases to 40 percent below 1990 levels by 2030.

SEC. 2.

 Section 6376.8 is added to the Revenue and Taxation Code, to read:

6376.8.
 (a) On and after January 1, 2022, 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, fuel for the operation of a zero-emission medium- or heavy-duty truck that is the subject of a lease entered into after July 1, 2022, that requires the lessor to provide all of the following to the lessee:
(1) The zero-emission medium- or heavy-duty truck.
(2) All necessary fueling or charging infrastructure needed to fuel or charge the zero-emission medium- or heavy-duty truck.
(3) All necessary fuel needed for the operation of the zero-emission medium- or heavy-duty truck.
(4) All necessary maintenance for the entire term of the lease of the zero-emission medium- or heavy-duty truck.
(b) Section 41 does not apply to the exemption provided by this section.
(c) For purposes of this section, the following definitions apply:
(1) “Heavy-duty” has the same meaning as defined in Section 39033 of the Health and Safety Code.
(2) “Medium-duty” has the same meaning as defined in Section 39037.5 of the Health and Safety Code.

SEC. 3.

 Section 10790 is added to the Revenue and Taxation Code, to read:

10790.
 (a) The license fee imposed by this part does not apply to a zero-emission medium- or heavy-duty truck that is the subject of a lease entered into after July 1, 2022, that requires the lessor to provide all of the following to the lessee:
(1) The zero-emission medium- or heavy-duty truck.
(2) All necessary fueling or charging infrastructure needed to fuel or charge the zero-emission medium- or heavy-duty truck.
(3) All necessary fuel needed for the operation of the zero-emission medium- or heavy-duty truck.
(4) All necessary maintenance for the entire term of the lease of the zero-emission medium- or heavy-duty truck.
(b) For purposes of this section, the following definitions apply:
(1) “Heavy-duty” has the same meaning as defined in Section 39033 of the Health and Safety Code.
(2) “Medium-duty” has the same meaning as defined in Section 39037.5 of the Health and Safety Code.

SEC. 4.

 Section 9108 is added to the Vehicle Code, to read:

9108.
 (a) The fees specified in this division are not required to be paid for a zero-emission medium- or heavy-duty truck of a type subject to registration under this code that is also the subject of a lease entered into after July 1, 2022, that requires the lessor to provide all of the following to the lessee:
(1) The zero-emission medium- or heavy-duty truck.
(2) All necessary fueling or charging infrastructure needed to fuel or charge the zero-emission medium- or heavy-duty truck.
(3) All necessary fuel needed for the operation of the zero-emission medium- or heavy-duty truck.
(4) All necessary maintenance for the entire term of the lease of the zero-emission medium- or heavy-duty truck.
(b) For purposes of this section, the following definitions apply:
(1) “Heavy-duty” has the same meaning as defined in Section 39033 of the Health and Safety Code.
(2) “Medium-duty” has the same meaning as defined in Section 39037.5 of the Health and Safety Code.

SEC. 5.

 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.