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AB-307 Sales and use taxes: exemptions: fuel passenger transit buses.(2007-2008)

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CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Assembly Bill
No. 307

Introduced  by  Assembly Member Hayashi

February 09, 2007

An act to add Section 6368.11 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 307, as introduced, Hayashi. Sales and use taxes: exemptions: fuel passenger transit buses.
The Sales and Use Tax Law imposes a tax on the gross receipts from the sale in this state of, or the storage, use, or other consumption in this state of, tangible personal property. That law provides various exemptions from that tax.
This bill would exempt from the sales and use tax a fuel-cell vehicle, as defined, or a fuel-cell system, as defined, sold or leased to a qualified person, as defined.
Counties and cities are authorized to impose local sales and use taxes in conformity with state sales and use taxes. Exemptions from state sales and use taxes enacted by the Legislature are automatically incorporated into the local taxes.
Section 2230 of the Revenue and Taxation Code provides that the state will 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 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, but its operative date would depend on its effective date.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 6368.11 is added to the Revenue and Taxation Code, to read:

6368.11.
 (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 fuel-cell vehicle, or fuel-cell system used exclusively for the purpose of upgrading a fuel-cell vehicle sold or leased to a qualified person.
(b) For the purposes of this section:
(1) “Fuel-cell vehicle” means a heavy‑duty public transit bus, of no less than 40 feet in length, whose primary source of power is derived from a fuel-cell system.
(2) “Fuel-cell system” means a fuel-cell system that chemically combines hydrogen and oxygen to generate electricity to energize electric drive motors.
(3) “Qualified person” means a public agency, public transit district, or a public local or regional transportation entity organized under the laws of this state.

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 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.