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SB-771 Sales and Use Tax Law: zero emissions vehicle exemption.(2021-2022)

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Date Published: 05/11/2021 09:00 PM
SB771:v97#DOCUMENT

Amended  IN  Senate  May 11, 2021
Amended  IN  Senate  May 03, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 771


Introduced by Senator Becker

February 19, 2021


An act to add Section 6368.2 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


SB 771, as amended, Becker. Sales and Use Tax Law: zero emissions vehicle exemption.
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 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. The Sales and Use Tax Law provides various exemptions from those taxes.
This bill, on or after January 1, 2022, would provide an exemption from those taxes with respect to the sale in this state of, and the storage, use, or other consumption in this state of, a qualified motor vehicle, as defined, sold to a qualified buyer, as defined. The bill would provide that this exemption does not apply to specified state sales and use taxes from which the proceeds are deposited into the Local Revenue Fund, the Local Revenue Fund 2011, or the Local Public Safety Fund.
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.
This bill would specify that this exemption does not apply to local sales and use taxes or transactions and use taxes.
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 6368.2 is added to the Revenue and Taxation Code, to read:

6368.2.
 (a) On or 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, a qualified motor vehicle sold to a qualified buyer.
(b) For purposes of this section, all of the following definitions apply:
(1) “Qualified motor vehicle” means a plug-in hybrid or zero-emission vehicle designated as an eligible vehicle under either the Clean Cars 4 All Program established by Section 44124.5 of the Health and Safety Code or the Clean Vehicle Rebate Project where original use did not commence with the purchaser. Code.
(2) “Qualified buyer” means either of the following:
(A)An an individual with an award letter or other approval documentation issued by the South Coast Air Quality Management District, Sacramento Metropolitan Air Quality Management District, San Joaquin Valley Air Quality Management District, or Bay Area Air Quality Management District, any entity implementing the Clean Cars 4 All Program to the individual indicating that their application has been approved for a grant under the Clean Cars for 4 All Program.

(B)An individual eligible to receive a rebate under the Clean Vehicle Rebate Project.

(3)“Clean Vehicle Rebate Project” means the program established as part of the Air Quality Improvement Program by the State Air Resources Board under Article 3 (commencing with Section 44274) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code.

(c) (1) Notwithstanding any provision of 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 this section does not apply with respect to any tax levied by a county, city, or district 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.

SEC. 2.

 It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.

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.