Bill Text: CA SB19 | 2013-2014 | Regular Session | Introduced

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

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Bill Title: Sales and use taxes: exemptions: property for use in space flight.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-02-03 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB19 Detail]

Download: California-2013-SB19-Introduced.html

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BILL NUMBER: SB 19	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Knight

                        DECEMBER 3, 2012

   An act to amend Section 6380 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 19, as introduced, Knight. Sales and use taxes: exemptions:
property for use in space flight.
   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, qualified property for use in space flight.
   This bill would expand this exemption to also include equipment
and materials used to construct, reconstruct, or improve new or
existing facilities designed to launch, manufacture, fabricate,
assemble, or process equipment that facilitates the renovation,
rehabilitation, or reconstruction of commercial space launch sites.
   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 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. 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 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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 6380 of the Revenue and Taxation Code is
amended to read:
   6380.  (a) There are exempted from the taxes imposed by this part
the gross receipts from the sale of, and the storage, use, or other
consumption in this state of, qualified property for use in space
flight.
   (b) For purposes of this section:
   (1) "Qualified property" means any of the following:
   (A) Tangible personal property that has space flight capability,
including, but not limited to, an orbital space facility, space
propulsion system, space vehicle, satellite, or space station of any
kind, and any component thereof.
   (B) Tangible personal property to be placed or used aboard any
facility, system, vehicle, satellite, or station described in
subparagraph (A), regardless of whether that property is to be
ultimately returned to this state for subsequent use, storage, or
other consumption. 
   (C) Tangible personal property in the form of equipment and
materials used to construct, reconstruct, or improve new or existing
facilities designed to launch, manufacture, fabricate, assemble, or
process equipment that facilitates the renovation, rehabilitation, or
reconstruction of commercial space launch sites.  
   (C) 
    (D)  Fuel of a quality that is not adaptable for use in
ordinary motor vehicles, but is produced, sold, and used exclusively
for space flight.
   (2) "Space flight" means any flight designed for suborbital,
orbital, or interplanetary travel by a space vehicle, satellite,
space facility, or space station of any kind.
   (c) The exemption established by this section shall not be denied
by reason of a failure, postponement, or cancellation of a launch of
a space vehicle, satellite, space facility, or space station of any
kind, or the destruction of any launch vehicle or any component
 thereof, but the exemption shall not apply to any material
that is not intended to be launched into space   thereof
 .
  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.