Bill Text: CA AB1891 | 2013-2014 | Regular Session | Amended

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Bill Title: Sales and use taxes: exemption: water desalination: equipment.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-05-13 - In committee: Set, second hearing. Held under submission. [AB1891 Detail]

Download: California-2013-AB1891-Amended.html

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BILL NUMBER: AB 1891	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 20, 2014

INTRODUCED BY   Assembly Member Donnelly

                        FEBRUARY 19, 2014

    An act to amend Section 7204.4 of the Revenue and
Taxation Code, relating to taxation.   An act to add and
repeal Section 6356.8 of the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1891, as amended, Donnelly.  Uniform local sales and
use taxes.   Sales and use taxes: exemption: water
desalination: equipment.  
   Existing 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.
That law provides various exemptions from those taxes.  
   This bill would, until January 1, 2025, 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, any equipment purchased
to be primarily used for water desalination.  
   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 law authorizes
districts, as specified, to impose transactions and use taxes in
accordance with the Transactions and Use Tax Law, which conforms to
the Sales and Use Tax Law. Amendments to state sales and use taxes
are incorporated into these laws.  
   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 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, but its
operative date would depend on its effective date.  
   The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes a
city, county, or city and county to impose sales and use taxes in
accordance with that law. That law requires the State Board of
Equalization to deduct from the tax revenues collected for counties
and cities and counties under that law an amount equal to specified
costs incurred by the Director of Transportation and the Controller.
 
   This bill would make technical, nonsubstantive changes to the
provision requiring the board to make these revenue deductions.

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 6356.8 is added to the 
 Revenue and Taxation Code   , to read:  
   6356.8.  (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, any equipment
purchased to be primarily used for water desalination.
   (b) "Water desalination" means a process that removes salt and
other minerals from saline water to produce fresh water suitable for
human consumption or irrigation.
   (c) This section shall remain in effect only until January 1,
2025, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2025, deletes or extends
that date. 
   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. 

  SECTION 1.    Section 7204.4 of the Revenue and
Taxation Code is amended to read:
   7204.4.  The Director of Transportation and the Controller shall
charge for the cost of their services in administering the
responsibilities assigned to them in Chapter 4 (commencing with
Section 99200) of Part 11 of Division 10 of the Public Utilities
Code. Amounts to be charged shall be specified in the annual Budget
Act. Those amounts shall be deducted from the tax revenues collected
by the board for the counties and the cities and counties.