Bill Text: CA AB81 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Sales and use taxes: exemptions: fuel and petroleum

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2012-02-01 - Died pursuant to Art. IV, Sec. 10(c) of the Constitution. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB81 Detail]

Download: California-2011-AB81-Amended.html

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BILL NUMBER: AB 81	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 23, 2011
	AMENDED IN ASSEMBLY  FEBRUARY 16, 2011

INTRODUCED BY   Assembly Member Beall
    (   Coauthor:   Assembly Member  
Jeffries   ) 

                        JANUARY 4, 2011

   An act to add and repeal Section 6357.8 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 81, as amended, Beall. Sales and use taxes: exemptions: fuel
and petroleum products: air common carriers.
   The Sales and Use Tax Law imposes 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 that tax, including an exemption
for the gross receipts from the sale of, and the storage, use, or
other consumption of, fuel and petroleum products sold to an air
common carrier for immediate consumption or shipment in the conduct
of its business on an international flight.
   This bill would, on or after January 1, 2012,  and before
January 1, 2020,  exempt from those state taxes, gross
receipts in excess of  $2.22 per gallon   the
average spot price over the previous 5 years, per gallon, 
derived from the sale in this state of, and the storage, use, or
other consumption in this state of, fuel and petroleum products sold
to or purchased by an air common carrier for consumption or shipment
in the conduct of its business on a domestic flight, as specified.
 The bill would repeal these provisions on January 1, 2017,
unless the Employment Development Department makes a specified
finding, in which case the bill would repeal these provisions on
January 1, 2020. 
   This bill would also require the State Board of Equalization,
beginning on January 1, 2013, and annually thereafter, to submit a
report to the Legislature setting forth the state fiscal impact of
the exemption.
   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. Exemptions from state sales and use taxes
are incorporated into these laws.
   This bill would specify that this exemption does not apply to
local sales and use taxes or transactions and use taxes, unless the
governing body of the taxing county, city, or district authorizes an
exemption and provides notice to the board on or before December 1,
2011.
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 6357.8 is added to the Revenue and Taxation
Code, to read:
   6357.8.  (a)  (1)    On and after January 1,
2012, and before December 31, 2019, there are exempted from the taxes
imposed by this part, gross receipts in excess of  two
dollars and twenty-two cents ($2.22) per gallon   the
average spot price over the previous five fiscal years, per gallon,
as determined by the board,  derived from the sale in this state
of, or the storage, use, or other consumption in this state of, fuel
and petroleum products sold to or purchased by an air common carrier
for consumption or shipment in the conduct of its business as an air
common carrier, on a domestic flight. 
   (2) For the 2011-12 fiscal year, the board shall, on or before
October 1, 2011, determine the average spot price over the previous
five fiscal years, per gallon, derived from the sale in this state
of, or the storage, use, or other consumption in this state of, fuel
and petroleum products sold to or purchased by an air common carrier
for consumption or shipment in the conduct of its business as an air
common carrier, on a domestic flight.  
   (3) For the 2012-13 fiscal year and each fiscal year thereafter,
the board shall, on or before March 1 preceding that fiscal year
determine the average spot price over the previous five fiscal years,
per gallon, derived from the sale in this state of, or the storage,
use, or other consumption in this state of, fuel and petroleum
products sold to or purchased by an air common carrier for
consumption or shipment in the conduct of its business as an air
common carrier, on a domestic flight. 
   (b) To qualify for the exemption, the air common carrier shall
furnish to the seller an exemption certificate in the form prescribed
by the board. Acceptance in good faith of that certificate shall
relieve the seller from liability for that portion of the sales tax
exempted under this section.
   (c) For purposes of this section, the following definitions apply:

   (1) "Air common carrier" has the same meaning as that set forth in
Section 23046 of the Business and Professions Code.
   (2) "Domestic flight" means a flight whose final destination is a
point inside of the United States, including its territories.
   (d) Any air common carrier claiming exemption under this section
that is not required to hold a valid seller's permit, shall be
required to register with the board and obtain a fuel exemption
registration number, and shall be required to file returns as the
board may prescribe, either if the board notifies the carrier that
returns must be filed or if the carrier is liable for taxes based
upon consumption or transportation of fuel or petroleum products
erroneously claimed as exempt under this section.
   (e) An air common carrier claiming an exemption under this section
 ,  upon request, shall make available to the board
records, including, but not limited to, a copy of a log abstract, an
air waybill, or a cargo manifest, documenting its consumption or
transportation of the fuel or petroleum products on a domestic flight
and the amount claimed as exempt. If the carrier fails to provide
these records upon request, the board may revoke the carrier's fuel
exemption registration number.
   (f) The board may require any air common carrier claiming an
exemption under this section and required to obtain a fuel exemption
registration number, to place with it such security as the board may
determine pursuant to Section 6701.
   (g) Pursuant to this section, any use of the fuel and petroleum
products by the purchasing carrier, other than that incident to the
delivery of the fuel and petroleum products to the carrier and the
consumption or transportation of the fuel and petroleum products by
the carrier on a domestic flight for use in the conduct of its
business as a common carrier, or a failure of the carrier to document
its consumption or transportation of the fuel and petroleum products
on a domestic flight, shall subject the carrier to liability for
payment of sales tax as if it were a retailer making a retail sale of
the property at the time of that use or failure, and the sales price
of the property to it shall be deemed to be the gross receipts from
the retail sale.
   (h) (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 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, unless
approved by the local government that would otherwise receive the
revenues derived from the taxes imposed under those laws.
   (2) The governing body of any county, city, or district may enact
an ordinance to authorize the exemption as described in subdivision
(a) with respect to taxes levied by that entity, and shall notify the
State Board of Equalization of this action on or before December 1,
2011.
   (i) (1) On January 1, 2013, and annually thereafter, the State
Board of Equalization shall submit a report to the Legislature
setting forth the state fiscal impact of the exemption allowed under
this section.
   (2) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.
   (j) This section shall remain in effect only until January 1,
 2020   2017  , and as of that date is
repealed  , unless the Employment Development Department makes a
finding on or before January 1, 2017, that 2,000 or more jobs have
been created as a result of this section, in which case this section
shall remain in effect until January 1, 2020, and as of that date is
repealed  .
  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.