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SB-79 Sales and use taxes: exemption: used electric vehicles.(2017-2018)



Current Version: 03/09/17 - Amended Senate

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SB79:v98#DOCUMENT

Amended  IN  Senate  March 09, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill
No. 79

Introduced by Senator Allen

January 11, 2017

An act to amend Section 25722.8 of the Public Resources Code, relating to public resources. An act to add Section 6368.4 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


SB 79, as amended, Allen. Advanced technology parking incentive programs: report. Sales and use taxes: exemption: used electric 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, 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 and after July 1, 2018, and before January 1, 2025, 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, a qualified motor vehicle purchased by a qualified buyer, as defined. The bill would require the State Air Resources Board to undertake a cost-benefit analysis of this tax exemption and the greenhouse gas emission reduction from the vehicles traded in and submit a report to the Legislature.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes cities and counties 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. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws.
This bill would specify that this exemption shall not apply to local sales and use taxes or transactions and use taxes.
This bill would take effect immediately as a tax levy.

Existing law requires the Secretary of Government Operations, in consultation with the Department of General Services and other specified state agencies, to develop, implement, and submit to the Legislature and the Governor a plan to improve the overall state vehicle fleet’s use of alternative fuels, synthetic lubricants, and fuel-efficient vehicles by reducing or displacing the consumption of petroleum products by the state fleet when compared to the 2003 consumption level, based on a specified schedule. Existing law requires the Department of General Services to prepare an annual progress report on meeting the goals set by the schedule.

Existing law also requires the Department of General Services and the Department of Transportation to develop and implement advanced technology vehicle parking incentive programs in specified parking facilities to provide incentives for the purchase and use of alternatively fueled vehicles in the state.

This bill would require the progress report prepared by the Department of General Services relative to fleet vehicles to also include a progress report on developing and implementing the advanced technology vehicle parking incentive programs.

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) The Governor of California has a goal of 1.5 million zero-emission vehicles on the road by 2025.
(b) As of December 2016, California had approximately 250,000 of those zero-emission vehicles on the road, indicating a growing consumer demand for those clean vehicles.
(c) A tax exemption for the secondhand purchase of an electric vehicle would result in a purchase incentive for low-income residents in California and can increase the adoption of these vehicles in disadvantaged communities.

SEC. 2.

 Section 6368.4 is added to the Revenue and Taxation Code, to read:

6368.4.
 (a) On and after July 1, 2018, and before January 1, 2025, 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 purchased by a qualified buyer.
(b) For purposes of this section, the following definitions shall apply:
(1) “Qualified motor vehicle” means a secondhand motor vehicle that meets the definition in Section 30D of the Internal Revenue Code of the term “new qualified plug-in electric drive motor vehicle” except the original use of that vehicle shall not commence with the taxpayer.
(2) “Qualified buyer” means an individual trading in a motor vehicle of model year 2009 or older if that individual has been the owner of the vehicle for the 12-month period immediately preceding the trade in and purchase of another vehicle.
(c) The State Air Resources Board shall undertake a cost-benefit analysis of the sales and use tax exemption and the greenhouse gas emission reduction from the vehicles traded in pursuant to this section for the period July 1, 2018 to July 1, 2020, and provide the analysis to the Legislature on or before July 1, 2021.
(d) (1) The requirement for submitting a report imposed under subdivision (c) is inoperative on July 1, 2025, pursuant to Section 10231.5 of the Government Code.
(2) A report to be submitted pursuant to subdivision (c) shall be submitted in compliance with Section 9795 of the Government Code.
(e) 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 shall not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws.

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.
SECTION 1.Section 25722.8 of the Public Resources Code is amended to read:
25722.8.

(a)The Secretary of Government Operations, in consultation with the Department of General Services and other appropriate state agencies that maintain or purchase vehicles for the state fleet, including the campuses of the California State University, shall develop, implement, and submit to the Legislature and the Governor a plan to improve the overall state fleet’s use of alternative fuels, synthetic lubricants, and fuel-efficient vehicles by reducing or displacing the consumption of petroleum products by the state fleet when compared to the 2003 consumption level based on the following schedule:

(1)By January 1, 2012, a 10-percent reduction or displacement.

(2)By January 1, 2020, a 20-percent reduction or displacement.

(b)Annually, by April 1, the Department of General Services shall prepare a progress report on meeting the goals specified in subdivision (a) and on developing and implementing the advanced technology vehicle parking incentive programs required pursuant to Section 25722.9. The Department of General Services shall post the progress report on its Internet Web site.

(c)(1)The Department of General Services shall encourage, to the extent feasible, the operation of state alternatively fueled vehicles on the alternative fuel for which the vehicle is designed and the development of commercial infrastructure for alternative fuel pumps and charging stations at or near state vehicle fueling or parking sites.

(2)The Department of General Services shall work with other public agencies to provide incentives to and promote, to the extent feasible, the state employee operation of alternatively fueled vehicles through preferential or reduced-cost parking, access to charging, or other means.

(3)For purposes of this subdivision, “alternatively fueled vehicles” means light-, medium-, and heavy-duty vehicles that reduce petroleum usage and related emissions by using advanced technologies and fuels, including, but not limited to, hybrid, plug-in hybrid, battery electric, natural gas, or fuel cell vehicles and including those vehicles described in Section 5205.5 of the Vehicle Code.