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SB-546 Sales and Use Tax Law: exemption: dedicated snow removal vehicles.(2023-2024)

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Date Published: 01/03/2024 02:00 PM
SB546:v97#DOCUMENT

Amended  IN  Senate  January 03, 2024
Amended  IN  Senate  March 21, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 546


Introduced by Senator Alvarado-Gil

February 15, 2023


An act to add and repeal Section 6359.5 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


SB 546, as amended, Alvarado-Gil. Sales and Use Tax Law: exemption: public safety first responder dedicated snow removal vehicles.
Existing state 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 of, state, or on the storage, use, or other consumption in this state of, state, of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law provides various exemptions from those taxes, including an exemption for the sale of, or the storage, use, or consumption of, items and materials when used to modify a vehicle for physically handicapped persons.
This bill would, until January 1, 2028, 2030, exempt from those taxes the gross receipts from the sale in this state of, state, and the storage, use, or other consumption in this state of, state, of a public safety first responder dedicated snow removal vehicle, as defined, purchased by a local public agency and any equipment required on those vehicles purchased by a local public agency.
Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would state the intent of the Legislature to comply with those provisions. make findings detailing the goals of the above-described tax expenditure and performance indicators for determining whether the tax expenditure meets those goals.
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 provide that the exemption created by the bill does not apply to local sales and use taxes or transactions and use taxes.
Existing law imposes or dedicates certain state sales and use tax rates for local funding, including through the Local Revenue Fund 2011.
This bill would provide that the exemption created by the bill does not apply to those state sales and use tax rates imposed or dedicated for local government funding, including those rates for which revenues are deposited into the Local Revenue Fund 2011.
This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date. be July 1, 2025.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 6359.5 is added to the Revenue and Taxation Code, to read:

6359.5.
 (a) There are exempted from the taxes imposed by this part, the gross receipts from the sale in this state of, state, and the storage, use, or other consumption in this state of, state, of a public safety first responder vehicle dedicated snow removal vehicle purchased by a local public agency and any equipment required on a public safety first responder vehicle purchased by a local public agency.
(b) As used in this section:
(1) “Dedicated snow removal vehicle” means a vehicle to which is permanently affixed snow removal equipment, including a snowblower or auger, that is operated exclusively to remove snow from public roads, private roads, or other paths to allow on-road vehicle access and is purchased by a local public agency for use by a local public agency employee to provide snow removal services.

(1)

(2) “Local public agency” means a city, county, municipal corporation, district, or public authority located within this state that provides, or may provide, emergency response snow removal services.

(2)“Public safety first responder vehicle” means a vehicle purchased for use by an employee of a local public agency to provide emergency response services.

(c)It is the intent of the Legislature to comply with Section 41.

(c) (1) Notwithstanding the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by subdivision (a) does not apply with respect to any tax levied pursuant to, or in accordance with, either of those laws.
(2) Notwithstanding subdivision (a), the exemption established by this section shall not apply with respect to any tax levied pursuant to Section 6051.2 or 6201.2, pursuant to Section 35 of Article XIII of the California Constitution, or any tax levied pursuant to Section 6051 or 6201 that is deposited in the State Treasury to the credit of the Local Revenue Fund 2011 pursuant to Section 6051.15 or 6201.15.
(d) For the purpose of complying with Section 41, the Legislature finds and declares all of the following:
(1) The specific goals that the exemption provided by this section will achieve are all of the following:
(A) To assist local agencies in acquiring necessary dedicated snow removal vehicles to respond to an expected increase of extreme weather events.
(B) To overcome dangerous conditions for both pedestrians and drivers by expanding snow removal efforts.
(C) To eliminate or significantly diminish the burden of high-cost dedicated snow removal vehicles needed to ensure the safety of citizens during and after severe winter storm activity.
(D) To support the economy by supporting local businesses and ensuring clear transportation routes for workers.
(2) The performance indicators for the Legislature to use in determining if the tax exemption achieves the stated goals are both of the following:
(A) The annual number of dedicated snow removal vehicles purchased by local agencies.
(B) The annual number of road closures due to snow buildup.
(3) The data collection requirements to enable the Legislature to determine whether the exemption is meeting, failing to meet, or exceeding its specified purposes are both of the following:
(A) The Legislative Analyst’s Office shall review the effectiveness of the tax exemption and may request information from the department and any state governmental entity with authority relating to the purchasing of dedicated snow removal vehicles.
(B) The department and any state governmental entity with authority relating to the purchasing of dedicated snow removal vehicles shall provide to the Legislative Analyst’s Office any data requested by the Legislative Analyst’s Office pursuant to this paragraph.
(4) The Legislative Analyst’s Office shall submit, pursuant to Section 9795 of the Government Code, a report to the Legislature on the effectiveness of the exemption provided by this section on or before July 1, 2028.

(d)

(e) This section shall become inoperative on January 1, 2028, 2030, 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.SEC. 2.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. However, the provisions of this act shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act. July 1, 2025.