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  APRIL 25, 2011
	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

F   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, exempt from those
state taxes, gross receipts  or sales price  in excess of
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
Fcase 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  , and would require the Employment Development
Department to submit a report to the Legislature and the Department
of Finance on or before October 1, 2016, determining whether 2,000 or
more jobs have been or are   expected to be created by the
bill on or before January 1, 2017  .
   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:
F  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   January 1, 2020  , there are
exempted from the taxes imposed by this part,  gross receipts
  the gross receipts or sales price  in excess of
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
Fan air common carrier, on a domestic flight.   (2) For  application in  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  application in  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:
F   (1) "Air common carrier" has the same meaning as that set forth in
FSection 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) The Employment Development Department shall submit a
report to the Legislature and the Department of Finance on or before
October 1, 2016, determining whether 2,000 or more jobs have been
created, or are expected to be created, on or before January 1, 2017,
Fas a result of this section.     (B) The requirement for submitting a report imposed under
subparagraph (A) is inoperative on October 1, 2020, pursuant to
Section 10231.5 of the Government Code.  
   (2) 
    (3)  A report to be submitted pursuant to 
paragraph (1)   paragraphs (1) and (2)  shall be
submitted in compliance with Section 9795 of the Government Code.
   (j) This section shall remain in effect only until January 1,
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
Fit 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.