Amended  IN  Assembly  April 09, 2019
Amended  IN  Assembly  March 25, 2019
Amended  IN  Assembly  March 18, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 784
Introduced by Assembly Member Mullin

February 19, 2019

An act to add and repeal Section 6377 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST

AB 784, as amended, Mullin. Sales and use taxes: exemption: California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project: transit bus 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, 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 would, until January 1, 2024, provide an exemption from those taxes with respect to the sale of of, and the storage and use of, or other consumption in this state of, specified zero-emission technology medium- and heavy-duty transit bus vehicles. 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.
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 take effect immediately as a tax levy.
Digest Key Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  
Bill Text
The people of the State of California do enact as follows:
SECTION 1. Section 6377 is added to the Revenue and Taxation Code, to read:
6377. (a) (1) There are exempted from the taxes imposed by this part the greater of either of the following:
(1)(A)The gross receipts from the sale of, and the storage and use of, or other consumption in this state of, any zero-emission technology medium- and heavy-duty transit bus vehicles that are eligible for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project funded under the Air Quality Improvement Program at the State Air Resources Board.

(B)

(2) 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 paragraph subdivision 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)The gross receipts measured by the value of a motor vehicle that is traded in for zero-emission technology medium- and heavy-duty transit bus vehicles that are eligible for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project funded under the Air Quality Improvement Program at the State Air Resources Board, if the value of the trade-in motor vehicle is separately stated on the new motor vehicle invoice or bill of sale or similar document provided to the purchaser.

(b) 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.
(c) This section shall become inoperative on January 1, 2024, and as of that date is repealed.
SEC. 2. (a) It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to this act.
(b) With respect to Section 6377 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares the following:
(1) The specific goals, purposes, and objectives of this act are as follows:
(A) To assist transit agencies in transitioning bus fleets to zero-emission by reducing upfront capital costs and incremental costs between technologies.
(B) To overcome an important upfront funding shortfall that currently impedes procurement of zero-emission transit buses and is critically needed to help public transit agencies ramp up to the Innovative Clean Transit initiative.
(C) To eliminate mobile criteria pollutant emissions and clean the air in disadvantaged communities.
(D) To substantially reduce greenhouse gas emissions.
(2) The performance indicators related to this act are as follows:
(A) The annual number of zero-emission transit bus purchases by transit authorities and agencies statewide.
(B) The annual number of zero-emission transit buses purchased in advance of the Innovative Clean Transit initiative timelines.
(3) The data collection requirements to enable the Legislature to determine whether the tax exemption is meeting, failing to meet, or exceeding its specified goals, purposes, and objectives are as follows:
(A) The Legislative Analyst’s Office shall review the effectiveness of the tax exemption and may request information from the Franchise Tax Board California Department of Tax and Fee Administration and any state governmental entity with authority relating to the purchasing of transit buses.
(B) The Franchise Tax Board California Department of Tax and Fee Administration and any state governmental entity with authority relating to the purchasing of transit buses shall provide to the Legislative Analyst’s Office any data requested by the Legislative Analyst’s Office pursuant to this subparagraph. paragraph.
SEC. 3. 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. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.