BILL NUMBER: SB 680	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Wieckowski
   (Coauthor: Senator Hill)

                        FEBRUARY 27, 2015

   An act to add Section 6388.6 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 680, as introduced, Wieckowski. Sales taxes: exemption: motor
vehicles.
   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 the storage, use, or other consumption in this
state, and provides various exemptions from those taxes.
   This bill would provide an exemption from the sales tax for
qualified new motor vehicles, as defined, and qualified accessories,
as defined, that are purchased in California for permanent use
outside this state, as provided.
   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.
   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 6388.6 is added to the Revenue and Taxation
Code, to read:
   6388.6.  (a) There are exempted from the computation of the amount
of sales tax the gross receipts from the sale of any qualified new
motor vehicle and qualified accessories sold to a person for
permanent use outside this state, provided all of the following
conditions are met:
   (1) The qualified new motor vehicle is moved to a point outside of
this state within 30 days from the date of purchase.
   (2) A one-trip permit for driving or moving the qualified new
motor vehicle to a point outside of this state pursuant to Section
4003 of the Vehicle Code is obtained.
   (3) The purchaser provides the retailer at time of purchase with
an exemption certificate as provided in Section 6421.
   (b) The exemption certificate shall identify the vehicle, seller,
and purchaser, state that the vehicle will be removed from this state
within 30 days of the date of purchase, and state that the vehicle
will be licensed and registered outside this state for permanent use
outside this state.
   (c) For purposes of this section:
   (1) "Permanent use outside this state" means that the qualified
new motor vehicle is licensed, registered, and used outside this
state and the qualified new motor vehicle and qualified accessories
do not return to this state within 12 months from the date of
purchase.
   (2) "Qualified accessories" means tangible personal property that
is affixed or attached to, or sold with, the qualified new motor
vehicle, a power source for the qualified new vehicle, or other
accessories commonly sold with a new motor vehicle that are sold
together with the qualified new motor vehicle.
   (3) "Qualified new motor vehicle" means a motor vehicle as
described in subdivision (a) of Section 415 of the Vehicle Code that
has not previously been sold.
  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.