Bill Text: CA SB653 | 2011-2012 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Local taxation: counties: school districts: community
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-02-01 - Died on the inactive file. [SB653 Detail]
Download: California-2011-SB653-Amended.html
Bill Title: Local taxation: counties: school districts: community
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-02-01 - Died on the inactive file. [SB653 Detail]
Download: California-2011-SB653-Amended.html
BILL NUMBER: SB 653 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 31, 2011
AMENDED IN SENATE APRIL 27, 2011
AMENDED IN SENATE APRIL 14, 2011
INTRODUCED BY Senator Steinberg
FEBRUARY 18, 2011
An act to amend Sections 17041.5, 30111, and 32010 of, to add
Section 17041.6 to, and to add Chapter 3.53 (commencing with Section
7289), Chapter 3.54 (commencing with Section 7289.10), Chapter 3.55
(commencing with Section 7289.20), Chapter 3.56 (commencing with
Section 7289.30) 7289.31) , Chapter
3.57 (commencing with Section 7289.40), and Chapter 3.58 (commencing
with Section 7289.50), to Part 1.7 of Division 2 of, the Revenue and
Taxation Code, relating to local taxation, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 653, as amended, Steinberg. Local taxation: counties:
school community college districts: county
offices of education: general authorization.
The California Constitution prohibits the Legislature from
imposing taxes for local purposes, but allows the Legislature to
authorize local governments to impose them.
This bill would authorize the governing board of any county or
city and county and , any
school community college district, and any
county office of education subject to specified constitutional
and voter approval requirements, to levy, increase, or extend a local
personal income tax, transactions and use tax, vehicle license fee,
and excise tax, including, but not limited to, an alcoholic beverages
tax, a cigarette and tobacco products tax, a sweetened beverage tax,
and an oil severance tax, as provided.
This bill would require the State Board of Equalization, the
Franchise Tax Board, or the Department of Motor Vehicles to perform
various functions incident to the administration and operation of a
local tax if the county or city and county or
, the school community college
district , or the county office of education
contracts with the state agency to perform those functions.
This bill for each fiscal year would also require a county or city
and county and , a school
community college district , and a county
office of education to reimburse the state for any losses
incurred by the state General Fund due to any deductions allowed
under the Personal Income Tax Law and the Corporation Tax Law for any
local taxes levied, increased, or extended pursuant to this
authorization by that county or city and county or school
, community college district, or county
office of education, as specified. This bill would, for each
fiscal year, require the Franchise Tax Board, with the assistance of
the State Board of Equalization, to estimate the losses incurred by
the state General Fund attributable to each county or city and county
or , a school
community college district , or a county office of
education due to any local taxes levied, increased, or extended
by that county or city and county or ,
school district , or county office of education .
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) The recent economic recession and slow recovery has led to an
erosion of tax revenues and sharp reductions in public services at
all levels of government in California.
(b) Counties are geographical and political subdivisions of the
state and administer state and federal laws governing public safety,
public health, child welfare services, and other programs. County
governments have experienced declines in general purpose revenues and
need additional funding stability to adequately protect the public
health and safety.
(c) Our schools and community colleges have lost billions of
dollars in state funding in recent years. Budget reductions have
resulted in larger class sizes and the elimination of extracurricular
activities in many schools and community colleges throughout
California.
(d) California is lagging in per pupil expenditures and simply is
not making the investment in public education needed to ensure that
our children are prepared to compete globally in the 21st century
economy.
(e) Public education and public safety are of vital concern to all
Californians.
(f) Businesses throughout California would benefit if counties
were able to stabilize funding for vital public services and schools
and community colleges were able to have access to the resources they
need to prepare the workforce of tomorrow.
(g) The Legislature controls the delegation of taxing authority to
counties, community college districts, and county offices of
education. These entities have limited taxing authority under current
law.
(h) Local taxing authority is subject to the provisions of Article
XIII C of the California Constitution, which requires local tax
measures that impose, extend, or increase taxes for special purposes
to be approved by a two-thirds vote of the electorate; and requires
local tax measures that impose, extend, or increase taxes for general
purposes to be approved by a majority vote of the electorate.
(i) Section 1 of Article II of the California Constitution
provides that "a]ll political power is inherent in the people."
(j) Voters want the option of deciding whether taxes should be a
part of the solution to budget shortfalls in their communities. The
voters should have a voice in determining the services they want and
are willing to pay for.
(k) That it is the intent of the Legislature to do both of the
following:
(1) To fund the administrative costs incurred by any state agency
resulting from the exercise of local taxing authority pursuant to
this act with a separate appropriation in a budget act or with a
deficiency appropriation.
(2) That local entities authorizing local tax measures under the
authorization provided by this act ultimately reimburse state
agencies for their administrative costs.
SEC. 2. Chapter 3.53 (commencing with Section
7289) is added to Part 1.7 of Division 2 of the Revenue
and Taxation Code , to read:
CHAPTER 3.53. GENERAL LOCAL TAX AUTHORIZATION
7289. Notwithstanding any other law, but subject to the
limitations of the California Constitution, the governing board of
any county or city and county, any community college district, and
any county office of education may, in accordance with Article 3.7
(commencing with Section 53720) of Chapter 4 of Part 1 of Division 2
of Title 5 of the Government Code, levy, increase, or extend any of
the following taxes:
(a) A local personal income tax that is assessed and collected by
the Franchise Tax Board in accordance with Section 17041.6.
(b) A transactions and use tax, adopted in accordance with the
Transactions and Use Tax Law (Part 1.6 (commencing with Section
7251)), notwithstanding any rate limitations specified in that law
for a county or city and county, a community college district, or a
county office of education.
(c) A local vehicle license fee that is assessed and collected in
accordance with Chapter 3.54 (commencing with Section 7289.10).
(d) (1) An excise tax, including, but not limited to, a local
alcoholic beverage tax, a local cigarette and tobacco products tax, a
local sweetened beverage tax, and a local medical marijuana tax.
(A) A local alcoholic beverage tax shall be assessed and collected
in accordance with Chapter 3.55 (commencing with Section 7289.20).
(B) A local cigarette and tobacco products tax shall be assessed
and collected in accordance with Chapter 3.56 (commencing with
Section 7289.31).
(C) A local sweetened beverage tax shall be assessed and collected
in accordance with Chapter 3.58 (commencing with Section 7289.50).
(2) Notwithstanding paragraph (1), an excise tax shall not include
a motor vehicle fuel tax or diesel fuel tax.
(3) A county or city and county, a community college district, or
a county office of education may contract with the State Board of
Equalization to administer an excise tax. The contract shall contain
a provision that the county or city and county, a community college
district, or a county office of education shall reimburse the board
for all refunds, losses, and costs incurred in the administration of
the tax.
(e) A local tax on extractive business activities, as defined in
paragraph (3) of subdivision (d) of Section 25128, not to exceed 2
percent of the wholesale value per unit measure.
(f) A local oil severance tax that is assessed and collected in
accordance with Chapter 3.57 (commencing with Section 7289.40).
7289.1. (a) For each fiscal year, a county or city and county, a
community college district, and a county office of education shall
reimburse the state for any losses incurred by the state General Fund
due to any deductions allowed for that fiscal year under the
Personal Income Tax Law (Part 10 (commencing with Section 17001)) and
the Corporation Tax Law (Part 11 (commencing with Section 23001))
for any local taxes levied, increased, or extended pursuant to this
chapter by that county or city and county, community college
district, or county office of education, in accordance with the
estimate prescribed by subdivision (b).
(b) For each fiscal year, the Franchise Tax Board, with assistance
from the State Board of Equalization, shall estimate the losses
incurred by the state General Fund attributable to each county or
city and county, a community college district, or a county office of
education due to any local taxes levied, increased, or extended
pursuant to this chapter by that county or city and county, community
college district, or county office of education.
SEC. 3. Chapter 3.54 (commencing with Section
7289.10) is added to Part 1.7 of Division 2 of the Revenue
and Taxation Code , to read:
CHAPTER 3.54. LOCAL VEHICLE LICENSE FEE
7289.10. (a) An ordinance or resolution imposing a local vehicle
license fee, as authorized pursuant to Chapter 3.53 (commencing with
Section 7289), shall not exceed 1.35 percent.
(b) (1) The Department of Motor Vehicles shall administer the
local vehicle license fee.
(2) Prior to the operative date of any ordinance or any resolution
imposing a local vehicle license fee, the county or city and county,
a community college district, or a county office of education shall
contract with the Department of Motor Vehicles to perform all
functions incident to the administration of the local vehicle license
fee.
(3) The contract shall require the county or city and county, a
community college district, or a county office of education to
reimburse the Department of Motor Vehicles for all refunds, losses,
and costs incurred in the administration and operation of the local
vehicle license fee.
(4) The local vehicle license fee shall be assessed and collected
in the same manner as the fee imposed by Part 5 (commencing with
Section 10701).
(5) (A) Amounts collected pursuant to this chapter shall be
transmitted to the Treasurer and deposited in the State Treasury to
the credit of the Local Vehicle License Fee Account in the General
Fund, which is hereby created.
(B) Notwithstanding Section 13340 of the Government Code, the
moneys in the Local Vehicle License Fee Account are hereby
continuously appropriated, without regard to fiscal year, to the
Controller for allocation to each county and city and county,
community college district, and jurisdiction of each county office of
education in which the local vehicle license fee is imposed.
(c) The Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code) shall not apply to any standard, criterion, procedure,
determination, rule, notice, or guideline established or issued by
the Department of Motor Vehicles in the administration of this
chapter.
SEC. 4. Chapter 3.55 (commencing with Section
7289.20) is added to Part 1.7 of Division 2 of the Revenue
and Taxation Code , to read:
CHAPTER 3.55. LOCAL ALCOHOLIC BEVERAGE TAX
7289.20. (a) Subject to the requirements of this chapter, the
governing board of a county or city and county, a community college
district, and a county office of education may impose a tax on the
privilege of selling beer, wine, or distilled spirits at retail in
the county or city and county, the community college district, or the
jurisdiction of the county office of education, as authorized
pursuant to Chapter 3.53 (commencing with Section 7289). The board of
supervisors may impose this tax within an incorporated city within
the county or city and county.
(b) Any tax imposed shall not exceed the following:
(1) On beer, five cents ($0.05) per 12 ounces and at a
proportionate rate for any other quantity.
(2) On wine, five cents ($0.05) per 5 ounces and at a
proportionate rate for any other quantity.
(3) On distilled spirits, five cents ($0.05) per 1.5 ounces and at
a proportionate rate for any other quantity.
(c) Any tax imposed shall not be regulatory within the meaning of
Section 22 of Article XX.
7289.21. For purposes of this chapter, "beer," "wine," and
"distilled spirits" have the same meanings as provided in Sections
23006, 23007, and 23005 of the Business and Professions Code.
7289.22. (a) The imposition of a tax pursuant to this chapter
shall not prohibit the concurrent application of a tax imposed
pursuant to the Sales and Use Tax Law (Part 1 (commencing with
Section 6001)), the Bradley-Burns Uniform Sales and Use Tax Law (Part
1.5 (commencing with Section 7200)), or a tax imposed in accordance
with the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251)), on the sale of or the, storage, use, or other
consumption of, beer, wine or distilled spirits.
(b) Notwithstanding Section 7203.5 or any other law, the
imposition of a tax pursuant to this chapter by a county or city and
county, a community college district, or a county office of education
shall not prohibit the concurrent administration by the State Board
of Equalization of a sales or use tax ordinance adopted by that
county or city and county pursuant to the Bradley-Burns Uniform Local
Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or
in accordance with the Transactions and Use Tax Law (Part 1.6
(commencing with Section 7251)).
7289.23. Any ordinance or resolution levying a tax pursuant to
this chapter shall provide that the tax shall conform to Part 1.6
(commencing with Section 7251). However, a tax imposed pursuant to
this chapter is not a sales or use tax or a transactions or use tax,
and shall not be considered as such for purposes of Section 7251.1.
7289.24. An ordinance or resolution adopted pursuant to this
chapter shall be operative on the first day of a calendar quarter
commencing more than 90 days after the adoption of the ordinance or
resolution.
7289.26. Prior to the operative date of any ordinance or
resolution imposing a tax pursuant to this chapter, the governing
board of the county or city and county, the community college
district, or the county office of education shall do either of the
following:
(a) Notify the State Board of Equalization in writing that the
county or city and county, the community college district, or the
county office of education will be responsible for administering the
tax imposed pursuant to an ordinance or resolution authorized by this
chapter on its own behalf, and that the ordinance or resolution does
not impose any duties or responsibilities for administering the tax
upon the board.
(b) Contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance or resolution. If the county or city and county, the
community college district, or the county office of education has not
contracted with the board prior to the operative date of the
ordinance or resolution, the operative date shall be delayed until
the first day of the first calendar quarter following the execution
of the contract.
7289.27. For a county or city and county, a community college
district, or a county office of education that elects to contract
with the State Board of Equalization to administer a tax imposed by
the county or city and county, the community college district, or the
county office of education, as authorized by this chapter, the
following shall apply:
(a) The contract shall require the county or city and county, the
community college district, or the county office of education to do
both of the following:
(1) Reimburse the State Board of Equalization for, and hold the
board harmless from, any and all costs, losses, or refunds.
(2) In the event that a legal action is commenced challenging the
validity of the tax in its entirety, as opposed to the application of
the tax to an individual taxpayer, place the tax proceeds into an
interest-bearing escrow account until the legality of the tax is
resolved by a final and nonappealable decision rendered by a court of
competent jurisdiction. This paragraph shall be enforceable by any
interested party in a proceeding for a writ of mandate.
(b) The county or city and county, the community college district,
or the county office of education shall reimburse the State Board of
Equalization for any costs the board incurs in preparing to
administer and operate the tax. The county or city and county, the
community college district, or the county office of education shall
reimburse the board as the costs are incurred and billed by the
board, on a monthly basis. These reimbursable costs shall include
costs incurred for the following:
(1) Developing procedures.
(2) Programming for data processing.
(3) Developing and adopting appropriate regulations.
(4) Designing and printing forms.
(5) Developing instructions for the State Board of Equalization
staff and for taxpayers.
(6) Any other necessary preparatory costs, including the State
Board of Equalization's direct and indirect costs as specified by
Section 11256 of the Government Code.
(c) Any dispute as to the amount of preparatory costs incurred by
the State Board of Equalization shall be resolved by the Director of
Finance, whose decision shall be final. The maximum amount of all
preparatory costs to be paid by the county or city and county, the
community college district, or the county office of education to the
board shall not exceed one hundred seventy-five thousand dollars
($175,000).
(d) In addition to the amounts paid to the State Board of
Equalization for the preparatory costs described in subdivision (b),
the county or city and county, the community college district, or the
county office of education shall reimburse the board for the cost of
the board's services in administering the tax. The amount of this
cost shall be determined by the board with the concurrence of the
Department of Finance.
(e) All revenues collected from taxes imposed pursuant to the
authorization of this chapter in counties or a city and county,
community college districts, or county offices of education that have
contracted with the State Board of Equalization to administer the
tax shall be remitted to the board and allocated by the board as
follows:
(1) First, for reimbursement to the State Board of Equalization
for the reasonable costs, as specified in subdivisions (b) and (d),
of administering and enforcing the tax ordinance on behalf of the
county or city and county, the community college district, or the
county office of education pursuant to the contract between the board
and the county or city and county, the community college district,
or the county office of education.
(2) Second, for transmission to each county or city and county,
community college district, or county office of education that has
contracted with the State Board of Equalization pursuant to
subdivision (b) of Section 7289.26, in proportion to the amount of
revenues derived from each county's or city and county's, community
college district's, or county office of education's respective tax.
(f) The State Board of Equalization shall transmit to a county or
city and county, a community college district, or a county office of
education all revenues derived from the taxes imposed pursuant to
this chapter and collected by the board pursuant to a contract with
the county or city and county, the community college district, or the
county office of education periodically as promptly as feasible. The
transmittals shall be made at least twice in each calendar quarter.
7289.28. Except as provided in Section 7289.29, to the extent
practicable, Chapter 5 (commencing with Section 6451), Chapter 6
(commencing with Section 6701), Chapter 7 (commencing with Section
6901), and Chapter 8 (commencing with Section 7051) of Part 1, shall
govern determinations, collection of tax, overpayments, and refunds,
and administration of all taxes imposed under the authorization of
this chapter.
7289.29. The return and payment of any tax imposed pursuant to
the authorization of this chapter shall be due and payable to the
State Board of Equalization on the same date as the return and
payment of the tax imposed pursuant to Part 1 (commencing with
Section 6001), provided that the retailer is within the jurisdiction
of a county or city and county, a community college district, or a
county office of education that elects to contract with the board to
administer the tax, pursuant to subdivision (b) of Section 7289.26.
If the retailer is within the jurisdiction of a county or city and
county, a community college district, or a county office of education
that has elected not to contract with the board to administer the
tax, the return and payment of the tax imposed pursuant to the
authorization of this chapter is due and payable from the retailer as
prescribed in the ordinance or resolution adopted by the county or
city and county, the community college district, or the county office
of education.
7289.30. The Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code) shall not apply to any standard, criterion,
procedure, determination, rule, notice, or guideline established or
issued by the State Board of Equalization in the administration of
this chapter.
SEC. 5. Chapter 3.56 (commencing with Section
7289.31) is added to Part 1.7 of Division 2 of the Revenue
and Taxation Code , to read:
CHAPTER 3.56. LOCAL CIGARETTE AND TOBACCO PRODUCT TAX
7289.31. (a) Subject to the requirements of this chapter, the
governing board of a county or city and county, a community college
district, and a county office of education may impose a tax on the
privilege of distributing cigarettes and tobacco products in the
county or city and county, the community college district, or the
jurisdiction of the county office of education, as authorized
pursuant to Chapter 3.53 (commencing with Section 7289). The board of
supervisors may impose this tax within an incorporated city within
the county or city and county.
(b) Any tax imposed shall not exceed the following:
(1) On cigarettes, five cents ($0.05) per cigarette.
(2) On tobacco products, based on the wholesale cost of these
products, at a tax rate, as determined annually by the State Board of
Equalization, which is equivalent to five cents ($0.05) per
cigarette.
(3) Any tax imposed shall be assessed and collected in the same
manner as the taxes imposed by the Cigarette and Tobacco Products Tax
Law (Part 13 (commencing with Section 30001)).
7289.32. An ordinance or resolution adopted pursuant to this
chapter shall be operative on the first day of a calendar quarter
commencing more than 110 days after the adoption of the ordinance or
resolution.
7289.33. Prior to the operative date of any ordinance or
resolution imposing a tax pursuant to this chapter, the governing
board of the county or city and county, the community college
district, or the county office of education shall do either of the
following:
(a) Notify the State Board of Equalization in writing that the
county or city and county, the community college district, or the
county office of education will be responsible for administering the
tax imposed pursuant to an ordinance or resolution authorized by this
chapter on its own behalf, and that the ordinance or resolution does
not impose any duties or responsibilities for administering the tax
upon the board.
(b) Contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance or resolution. If the county or city and county, the
community college district, or the county office of education has not
contracted with the board prior to the operative date of the
ordinance or resolution, the operative date shall be delayed until
the first day of the first calendar quarter following the execution
of the contract.
7289.34. For a county or city and county, a community college
district, or a county office of education that elects to contract
with the State Board of Equalization to administer a tax imposed by
the county or city and county, the community college district, or the
county office of education, as authorized by this chapter, the
following shall apply:
(a) The contract shall require the county or city and county, the
community college district, or the county office of education to do
both of the following:
(1) Reimburse the State Board of Equalization for, and hold the
board harmless from, any and all costs, losses, or refunds.
(2) In the event that a legal action is commenced challenging the
validity of the tax in its entirety, as opposed to the application of
the tax to an individual taxpayer, place the tax proceeds into an
interest-bearing escrow account until the legality of the tax is
resolved by a final and nonappealable decision rendered by a court of
competent jurisdiction. This paragraph shall be enforceable by any
interested party in a proceeding for a writ of mandate.
(b) The county or city and county, the community college
district, or the county office of education shall reimburse the State
Board of Equalization for any costs the board incurs in preparing to
administer and operate the tax. The county or city and county, the
community college district, or the county office of education shall
reimburse the board as the costs are incurred and billed by the
board, on a monthly basis. These reimbursable costs shall include
costs incurred for the following:
(1) Developing procedures.
(2) Programming for data processing.
(3) Developing and adopting appropriate regulations.
(4) Designing and printing forms.
(5) Developing instructions for the State Board of Equalization
staff and for taxpayers.
(6) Any other necessary preparatory costs, including the State
Board of Equalization's direct and indirect costs as specified by
Section 11256 of the Government Code.
(c) Any dispute as to the amount of preparatory costs incurred by
the State Board of Equalization shall be resolved by the Director of
Finance, whose decision shall be final. The maximum amount of all
preparatory costs to be paid by the county or a city and county, the
community college district, or the county office of education to the
board shall not exceed one hundred seventy-five thousand dollars
($175,000).
(d) In addition to the amounts paid to the State Board of
Equalization for the preparatory costs described in subdivision (b),
the county or a city and county, the community college district, or
the county office of education shall reimburse the board for the cost
of the board's services in administering the tax. The amount of this
cost shall be determined by the board with the concurrence of the
Department of Finance.
(e) All revenues collected from taxes imposed pursuant to the
authorization of this chapter in counties or a city and county,
community college districts, or county offices of education that have
contracted with the State Board of Equalization to administer the
tax shall be remitted to the board and allocated by the board as
follows:
(1) First, for reimbursement to the State Board of Equalization
for the reasonable costs, as specified in subdivisions (b) and (d),
of administering and enforcing the tax ordinance on behalf of the
county or city and county, the community college district, or the
county office of education pursuant to the contract between the board
and the county or city and county, the community college district,
or the county office of education.
(2) Second, for transmission to each county or city and county,
community college district, or county office of education that has
contracted with the State Board of Equalization pursuant to
subdivision (b) of Section 7289.33, in proportion to the amount of
revenues derived from each county's or city and county's, community
college district's, or county office of education's respective tax.
(f) The State Board of Equalization shall transmit to a county or
city and county, a community college district, or a county office of
education all revenues derived from the taxes imposed pursuant to
this chapter and collected by the board pursuant to a contract with
the county or city and county, the community college district, or the
county office of education periodically as promptly as feasible. The
transmittals shall be made at least twice in each calendar quarter.
7289.35. Except as provided in Section 7289.36, to the extent
practicable, Chapter 4 (commencing with Section 30181), Chapter 5
(commencing with Section 30301), Chapter 6 (commencing with Section
30361), and Chapter 8 (commencing with Section 30451) of Part 13,
shall govern determinations, collection of tax, overpayments, and
refunds, and administration of all taxes imposed under the
authorization of this chapter.
7289.36. The return and payment of any tax imposed pursuant to
the authorization of this chapter is due and payable to the State
Board of Equalization on the same date as the return and payment of
the tax imposed pursuant to Part 13 (commencing with Section 30001),
provided that the retailer is within the jurisdiction of a county or
city and county, a community college district, or a county office of
education that elects to contract with the board to administer the
tax, pursuant to subdivision (b) of Section 7289.33. If the retailer
is within the jurisdiction of a county or city and county, a
community college district, or a county office of education that has
elected not to contract with the board to administer the tax, the
return and payment of the tax imposed pursuant to the authorization
of this chapter is due and payable from the retailer as prescribed in
the ordinance or resolution adopted by the county or city and
county, the community college district, or the county office of
education.
7289.37. The Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code) shall not apply to any standard, criterion,
procedure, determination, rule, notice, or guideline established or
issued by the State Board of Equalization in the administration of
this chapter.
SEC. 6. Chapter 3.57 (commencing with Section
7289.40) is added to Part 1.7 of Division 2 of the Revenue
and Taxation Code , to read:
CHAPTER 3.57. LOCAL OIL SEVERANCE TAX
7289.40. (a) Subject to the requirements of this chapter, the
governing board of a county or city and county, a community college
district, and a county office of education may impose a tax upon a
producer for the privilege of severing oil from the earth or water in
the county or city and county, the community college district, or
the jurisdiction of the county office of education for sale,
transport, consumption, storage, profit, or use, as authorized
pursuant to Chapter 3.53 (commencing with Section 7289). The board of
supervisors may impose this tax within an incorporated city within
the county or city and county.
(b) Any tax imposed shall not exceed 10 percent of the gross value
of the product.
(c) Except as otherwise provided in this chapter, the tax shall be
upon the entire production in the county or city and county, the
community college district, or the jurisdiction of the county office
of education, regardless of the place of sale or to whom sold or by
whom used, or the fact that the delivery may be made to points
outside the county or city and county, community college district, or
the jurisdiction of the county office of education.
(d) The tax shall be in addition to any ad valorem taxes imposed
by the state, or any of its political subdivisions, or any local
business license taxes that may be incurred for the privilege of
severing oil from the earth or water or doing business in that
locality. An exemption shall not be allowed from the payment of an ad
valorem tax related to equipment, material, or property by reason of
the payment of the gross severance tax.
(e) Two or more producers that are corporations and are owned or
controlled directly or indirectly, as defined in Section 25105, by
the same interests shall be considered as a single producer for
purposes of application of the tax.
(f) There shall be exempted from the imposition of the tax imposed
pursuant to this part oil produced by a stripper well in which the
average value of oil as of January 1 of the prior year is less than
thirty dollars ($30) per barrel price of California oil. The Division
of Oil, Gas, and Geothermal Resources in the Department of
Conservation shall provide notification of all wells that have been
certified as a stripper well.
(g) For oil produced in this state from a well that qualifies
under Section 3251 of the Public Resources Code or which has been
inactive for a period of at least the preceding five consecutive
years, the imposition of the tax imposed pursuant to this part shall
be reduced to zero for a period of 10 years. The Division of Oil,
Gas, and Geothermal Resources in the Department of Conservation shall
determine which wells qualify under Section 3251 of the Public
Resources Code or which have been inactive for a period of at least
the preceding five consecutive years, and shall provide notification
of its determinations.
(h) There shall be exempted from the imposition of a tax imposed
all oil owned or produced by the state and any political subdivision'
s (including any local public entity, as defined by Section 900.4 of
the Government Code) proprietary share of oil produced under any
unit, cooperative, or other pooling agreement.
7289.41. For purposes of any tax imposed, all of the following
definitions shall apply:
(a) "Barrel of oil" means 42 United States gallons of 231 cubic
inches per gallon computed at a temperature of 60 degrees Fahrenheit.
(b) "Gross value" means the sale price at the mouth of the well,
including any bonus, premium, or other thing of value paid for the
oil. If there is no sale at the time of severance, "gross value"
means the sale price when the oil is sold, including any bonus,
premium, or other thing of value paid for the oil. If oil is
exchanged for something other than cash, or if the relation between
the buyer and the seller is such that the consideration paid, if any,
is not indicative of the true value or market price, then the board
shall determine the value of the oil subject to the tax based on the
cash price paid to producers for like quality oil in the vicinity of
the well.
(c) "Oil" means petroleum, or other crude oil, condensate, casing
head gasoline, or other mineral oil that is mined, produced, or
withdrawn from below the surface of the soil or water in the county
or city and county, the community college district, or the
jurisdiction of the county office of education.
(d) "Producer" means any person or entity that takes oil from the
earth or water in the county or city and county, the community
college district, or the jurisdiction of the county office of
education in any manner; any person that owns, controls, manages, or
leases any oil well in the earth or water of the county or city and
county, the community college district, or the jurisdiction of the
county office of education; any person that produces or extracts in
any manner any oil by taking it from the earth or water in the county
or city and county, the community college district, or the
jurisdiction of the county office of education; any person that
acquires the severed oil from a person or agency exempt from property
taxation under the United States Constitution or other laws of the
United States or under the California Constitution or other laws of
the State of California; and any person that owns an interest,
including a royalty interest, in oil or its value, whether the oil is
produced by the person owning the interest or by another on the
person's behalf by lease, contract, or other arrangement.
(e) "Production" means the total gross amount of oil produced,
including the gross amount attributable to a royalty or other
interest.
(f) "Severed" or "severing" means the extraction or withdrawing
from below the surface of the earth or water of any oil, regardless
of whether the extraction or withdrawal shall be by natural flow,
mechanical flow, forced flow, pumping, or any other means employed to
get the oil from below the surface of the earth or water, and shall
include the extraction or withdrawal by any means whatsoever of oil
upon which the tax has not been paid, from any surface reservoir,
natural or artificial, or from a water surface.
(g) "Stripper well" means a well that has been certified by the
Division of Oil, Gas, and Geothermal Resources in the Department of
Conservation as an oil well incapable of producing an average of more
than 10 barrels of oil per day during the entire taxable month. Once
a well has been certified as a stripper well, that stripper well
shall remain certified as a stripper well until the well produces an
average of more than 10 barrels of oil per day during an entire
taxable month.
7289.42. Prior to the operative date of any ordinance or
resolution imposing a tax pursuant to this chapter, the governing
board of the county or city and county, the community college
district, or the county office of education shall do either of the
following:
(a) Notify the State Board of Equalization in writing that the
county or city and county, the community college district, or the
county office of education will be responsible for administering the
tax imposed pursuant to an ordinance or a resolution authorized by
this chapter on its own behalf, and that the ordinance or resolution
does not impose any duties or responsibilities for administering the
tax upon the board.
(b) Contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance or resolution. If the county or city and county, the
community college district, or the county office of education has not
contracted with the board prior to the operative date of the
ordinance or resolution, but shall contract, the operative date shall
be delayed until the first day of the first calendar quarter
following the execution of the contract.
7289.43. For a county or city and county, a community college
district, or a county office of education that elects to contract
with the State Board of Equalization to administer a tax imposed by
the county or city and county, the community college district, or the
county office of education, as authorized by this chapter, the
following shall apply:
(a) The contract shall require the county or city and county, the
community college district, or the county office of education to do
both of the following:
(1) Reimburse the State Board of Equalization for, and hold the
board harmless from, any and all costs, losses, or refunds.
(2) In the event that a legal action is commenced challenging the
validity of the tax in its entirety, as opposed to the application of
the tax to an individual taxpayer, place the tax proceeds into an
interest-bearing escrow account until the legality of the tax is
resolved by a final and nonappealable decision rendered by a court of
competent jurisdiction. This paragraph shall be enforceable by any
interested party in a proceeding for a writ of mandate.
(b) The county or city and county, the community college district,
or the county office of education shall reimburse the State Board of
Equalization for any costs the board incurs in preparing to
administer and operate the tax. The county or city and county, the
community college district, or the county office of education shall
reimburse the board as the costs are incurred and billed by the
board, on a monthly basis. These reimbursable costs shall include
costs incurred for the following:
(1) Developing procedures.
(2) Programming for data processing.
(3) Developing and adopting appropriate regulations.
(4) Designing and printing forms.
(5) Developing instructions for the State Board of Equalization
staff and for taxpayers.
(6) Any other necessary preparatory costs, including the State
Board of Equalization's direct and indirect costs as specified by
Section 11256 of the Government Code.
(c) Any dispute as to the amount of preparatory costs incurred by
the State Board of Equalization shall be resolved by the Director of
Finance, whose decision shall be final. The maximum amount of all
preparatory costs to be paid by the county or city and county, the
community college district, or the county office of education to the
board shall not exceed one hundred seventy-five thousand dollars
($175,000).
(d) In addition to the amounts paid to the State Board of
Equalization for the preparatory costs described in subdivision (b),
the county or city and county, the community college district, or the
county office of education shall reimburse the board for the cost of
the board's services in administering the tax. The amount of this
cost shall be determined by the board with the concurrence of the
Department of Finance.
(e) All revenues collected from taxes imposed pursuant to the
authorization of this chapter in counties or a city and county,
community college districts, or county offices of education that have
contracted with the State Board of Equalization to administer the
tax shall be remitted to the board and allocated by the board as
follows:
(1) First, for reimbursement to the State Board of Equalization
for the reasonable costs, as specified in subdivisions (b) and (d),
of administering and enforcing the tax ordinance on behalf of the
county or city and county, the community college district, or the
county office of education pursuant to the contract between the board
and the county or city and county, the community college district,
or the county office of education.
(2) Second, for transmission to each county or city and county,
community college district, or county office of education that has
contracted with the State Board of Equalization pursuant to
subdivision (b) of Section 7289.42, in proportion to the amount of
revenues derived from each county's or city and county's, community
college district's, or county office of education's respective tax.
(f) The State Board of Equalization shall transmit to a county or
city and county, a community college district, or a county office of
education all revenues derived from the taxes imposed pursuant to
this chapter and collected by the board pursuant to a contract with
the county or city and county, the community college district, or the
county office of education periodically as promptly as feasible. The
transmittals shall be made at least twice in each calendar quarter.
7289.44. (a) For a producer within a jurisdiction of a county or
city and county, a community college district, or a county office of
education that elects to contract with the State Board of
Equalization to administer the tax pursuant to subdivision (b) of
Section 7289.42, the following apply:
(1) (A) The return and payment of any tax imposed pursuant to the
authorization of this chapter is due and payable to the board
quarterly on or before the last day of the month next succeeding each
calendar quarter.
(B) Each producer shall prepare and file with the State Board of
Equalization a return in the form prescribed by the board containing
information as the board deems necessary or appropriate for the
proper administration of the tax. The return shall be filed on or
before the last day of the calendar month following the calendar
quarter to which it relates, together with a remittance payable to
the board for the amount of tax due for that period.
(2) The State Board of Equalization may prescribe those forms and
reporting requirements as necessary to implement the tax, including,
but not limited to, information regarding the location of the well by
county or city and county, district, or jurisdiction of the county
office of education, the gross amount of oil produced, the quantity
sold and the selling price, the prevailing market price of oil, and
the amount of tax due.
(3) The State Board of Equalization shall administer and collect
the tax, to the extent practicable, pursuant to the Fee Collection
Procedures Law (Part 30 (commencing with Section 55001) of Division
2). For purposes of this part, the references in the Fee Collection
Procedures Law to "fee" shall include the tax imposed by this part,
and to "feepayer" shall include a producer required to pay the tax
imposed by this part.
(4) The State Board of Equalization may prescribe, adopt, and
enforce regulations relating to the administration and enforcement of
this chapter.
(b) If the producer is within the jurisdiction of a county or city
and county, a community college district, or a county office of
education that has elected not to contract with the State Board of
Equalization to administer the tax, the determinations, collection of
tax, overpayments, and refunds, and administration of the tax
imposed under the authorization of this chapter shall be prescribed
in the ordinance or resolution adopted by the county or city and
county, the community college district, or the county office of
education.
7289.45. The Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code) shall not apply to any standard, criterion,
procedure, determination, rule, notice, or guideline established or
issued by the State Board of Equalization in the administration of
this chapter.
SEC. 7. Chapter 3.58 (commencing with Section
7289.50) is added to Part 1.7 of Division 2 of the Revenue
and Taxation Code , to read:
CHAPTER 3.58. LOCAL SWEETENED BEVERAGE TAX
7289.50. (a) Subject to the requirements of this chapter, the
governing board of a county or city and county, a community college
district, and a county office of education may impose a tax upon a
distributor for the privilege of distributing bottled sweetened
beverages and concentrate in the county or city and county, the
community college district, or the jurisdiction of the county office
of education, as authorized pursuant to Chapter 3.53 (commencing with
Section 7289). The board of supervisors may impose this tax within
an incorporated city within the county or city and county.
(b) Any tax imposed shall be calculated as follows:
(1) The tax on bottled sweetened beverages distributed in the
county or city and county shall be imposed per fluid ounce, not to
exceed one cent ($0.01) per fluid ounce.
(2) The tax on concentrate distributed in the county or city and
county, the community college district, or the jurisdiction of the
county office of education, either as concentrate or as a sweetened
beverage derived from that concentrate, shall be imposed per fluid
ounce of sweetened beverage produced from that concentrate, not to
exceed one cent ($0.01) per fluid ounce. For purposes of calculating
the tax for concentrate, the volume of sweetened beverage to be
produced from concentrate shall be the largest volume resulting from
use of the concentrate according to any manufacturer's instructions.
(c) There shall be exempted from the imposition of a tax imposed
the distribution of bottled sweetened beverages or concentrate
distributed by a distributor to:
(1) To a person when, pursuant to the contract of sale, the
bottled sweetened beverages or concentrates are shipped to a point
outside of this state by the distributor by means of any of the
following:
(A) Facilities operated by the distributor.
(B) Delivery by the distributor to a carrier, customs broker, or
forwarding agent, whether hired by the purchaser or not, for shipment
to the out-of-county point.
(2) To a person where the county or city and county, the community
college district, or the county office of education is prohibited
from taxing that sale, use, or consumption under the Constitution or
laws of the United States or under
the Constitution of this state.
7289.51. For purposes of any tax imposed, all of the following
definitions shall apply:
(a) "Beverage container" means any closed or sealed container
regardless of size or shape, including, without limitation, those
made of glass, metal, paper, plastic, or any other material or
combination of materials.
(b) "Bottled sweetened beverage" means a sweetened beverage
contained in a beverage container.
(c) "Beverage dispensing machine" means a device which mixes
concentrate with any one or more other ingredients and dispenses the
resulting mixture into an open container as a ready-to-drink
beverage.
(d) "Caloric sweetener" means any caloric substance suitable for
human consumption that humans perceive as sweet and includes, without
limitation, sucrose, fructose, including high fructose corn
sweetener, glucose, other sugars, and fruit juice concentrates.
"Caloric" means a substance that adds calories to the diet of a
person who consumes that substance.
(e) "Concentrate" means a syrup, powder, or base product that is
used for mixing, compounding, or making sweetened beverages in a
beverage dispensing machine. For purposes of this part, "concentrate"
does not include any of the following:
(1) Any product that is solely used in preparing coffee or tea.
(2) Any product for consumption by infants and which is commonly
referred to as "infant formula."
(3) Any product for use for weight reduction.
(4) Any product containing milk or milk products or plant proteins
sources.
(5) Any frozen concentrate or freeze-dried concentrate to which
only water is added to produce a sweetened beverage containing more
than 10 percent natural fruit juice or more than 10 percent natural
fruit juice.
(6) Any product that is sold and is intended to be used for the
purpose of an individual consumer mixing a sweetened beverage.
(7) Medical food.
(8) Any product to which no caloric sweeteners have been added.
(f) "Consumer" means a person who purchases a bottled sweetened
beverage or concentrate for a purpose other than resale in the
ordinary course of business.
(g) "Distribution" includes:
(1) The sale of bottled sweetened beverages or concentrate to a
retailer.
(2) The receipt of untaxed bottled sweetened beverages or
concentrate in this state from an unregistered out-of-state
distributor by a retailer.
(h) "Distributor" means any person, or the distributor's agent,
who makes a distribution of bottled sweetened beverages, sweetened
beverages, or concentrate in the state, whether or not that person
also sells these products to consumers.
(i) "Medical food" means medical food as defined in Section 109971
of the Health and Safety Code.
(j) "Milk" means natural liquid milk, regardless of animal source
or butterfat content, natural milk concentrate, whether or not
reconstituted, regardless of animal source, plant source, or
butterfat content, or dehydrated natural milk, whether or not
reconstituted and regardless of animal source or butterfat content.
(k) "Natural fruit juice" means the original liquid resulting from
the pressing of fruit, the liquid resulting from the reconstitution
of natural fruit juice concentrate, or the liquid resulting from the
restoration of water to dehydrated natural fruit juice.
(l) "Natural vegetable juice" means the original liquid resulting
from the pressing of vegetables, the liquid resulting from the
reconstitution of natural vegetable juice concentrate, or the liquid
resulting from the restoration of water to dehydrated natural
vegetable juice.
(m) "Nonalcoholic beverage" means any beverage not subject to tax
under Part 14 (commencing with Section 32001).
(n) "Person" means an individual, trust, firm, joint stock
company, business concern, business trust, receiver, trustee,
syndicate, social club, fraternal organization, estate, corporation,
including, but not limited to, a government corporation, partnership,
limited liability company, and association or any other group or
combination acting as a unit. "Person" also includes any city,
county, city and county, district, commission, the state, or any
department, agency, or political subdivision thereof, any interstate
body, and the United States and its agencies and instrumentalities to
the extent permitted by law.
(o) "Powder" or "base product" means a solid mixture of
ingredients used in making, mixing, or compounding sweetened
beverages by mixing the powder or base product with any one or more
other ingredients, including, without limitation, water, ice, syrup,
simple syrup, fruits, vegetables, fruit juice, vegetable juice, or
carbonation or other gas.
(p) "Retail sale" means the sale of bottled sweetened beverages or
sweetened beverages to a consumer.
(q) "Retailer" means any person who sells in this state bottled
sweetened beverages or sweetened beverages to a consumer, whether or
not that person is also a distributor as defined in this section.
(r) "Sale" means the transfer of title or possession for
consideration in any manner or by any means whatever.
(s) "Simple syrup" means a mixture of sugar and water.
(t) (1) "Sweetened beverage" means any sweetened nonalcoholic
beverage sold for human consumption that contains any added caloric
sweeteners, including, but not limited to, the following: soda water,
ginger ale, root beer, all beverages commonly referred to as cola,
lime, lemon, lemon-lime, and other flavored beverages, including any
fruit or vegetable beverage containing 10 percent or less natural
fruit juice or natural vegetable juice, and all other drinks and
beverages commonly referred to as "soda," "soda pop," and "soft
drinks."
(2) "Sweetened beverage" does not include any of the following:
(A) Any product sold in liquid form for consumption by infants,
which is commonly referred to as "infant formula."
(B) Any product sold in liquid form for use for weight reduction.
(C) Water, to which no caloric sweeteners have been added.
(D) Any product containing milk or milk products or plant protein
sources.
(E) Medical food.
(F) Coffee or tea.
(u) "Syrup" means the liquid mixture of ingredients used in
making, mixing, or compounding sweetened beverages using one or more
other ingredients including, without limitation, water, ice, a
powder, simple syrup, fruits, vegetables, fruit juice, vegetable
juice, or carbonation or other gas.
7289.52. Prior to the operative date of any ordinance or
resolution imposing a tax pursuant to this chapter, the governing
board of the county or city and county, the community college
district, or the county office of education shall do either of the
following:
(a) Notify the State Board of Equalization in writing that the
county or city and county, the school district, or the county office
of education will be responsible for administering the tax imposed
pursuant to an ordinance or a resolution authorized by this chapter
on its own behalf, and that the ordinance or resolution does not
impose any duties or responsibilities for administering the tax upon
the State Board of Equalization.
(b) Contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance or resolution. If the county or city and county, the
community college district, or the county office of education has not
contracted with the board prior to the operative date of the
ordinance or resolution, but shall contract, the operative date shall
be delayed until the first day of the first calendar quarter
following the execution of the contract.
7289.53. For a county or city and county, a community college
district, or a county office of education that elects to contract
with the State Board of Equalization to administer a tax imposed by
the county or city and county, the community college district, or the
county office of education, as authorized by this chapter, the
following shall apply:
(a) The contract shall require the county or city and county, the
community college district, or the county office of education to do
both of the following:
(1) Reimburse the State Board of Equalization for, and hold the
board harmless from, any and all costs, losses, or refunds.
(2) In the event that a legal action is commenced challenging the
validity of the tax in its entirety, as opposed to the application of
the tax to an individual taxpayer, place the tax proceeds into an
interest-bearing escrow account until the legality of the tax is
resolved by a final and nonappealable decision rendered by a court of
competent jurisdiction. This paragraph shall be enforceable by any
interested party in a proceeding for a writ of mandate.
(b) The county or city and county, the community college district,
or the county office of education shall reimburse the State Board of
Equalization for any costs the board incurs in preparing to
administer and operate the tax. The county or city and county, the
community college district, or the county office of education shall
reimburse the board as the costs are incurred and billed by the
board, on a monthly basis. These reimbursable costs shall include
costs incurred for the following:
(1) Developing procedures.
(2) Programming for data processing.
(3) Developing and adopting appropriate regulations.
(4) Designing and printing forms.
(5) Developing instructions for the State Board of Equalization
staff and for taxpayers.
(6) Any other necessary preparatory costs, including the State
Board of Equalization's direct and indirect costs as specified by
Section 11256 of the Government Code.
(c) Any dispute as to the amount of preparatory costs incurred by
the State Board of Equalization shall be resolved by the Director of
Finance, whose decision shall be final. The maximum amount of all
preparatory costs to be paid by the county or city and county, the
community college district, or the county office of education to the
board shall not exceed one hundred seventy-five thousand dollars
($175,000).
(d) In addition to the amounts paid to the State Board of
Equalization for the preparatory costs described in subdivision (b),
the county or city and county, the community college district, or the
county office of education shall reimburse the board for the cost of
the board's services in administering the tax. The amount of this
cost shall be determined by the board with the concurrence of the
Department of Finance.
(e) All revenues collected from taxes imposed pursuant to the
authorization of this chapter in counties or a city and county,
community college districts, or county offices of education that have
contracted with the State Board of Equalization to administer the
tax shall be remitted to the board and allocated by the board as
follows:
(1) First, for reimbursement to the State Board of Equalization
for the reasonable costs, as specified in subdivisions (b) and (d),
of administering and enforcing the tax ordinance on behalf of the
county or city and county, the community college district, or the
county office of education pursuant to the contract between the board
and the county or city and county, the community college district,
or the county office of education.
(2) Second, for transmission to each county or city and county,
community college district, or county office of education that has
contracted with the State Board of Equalization pursuant to
subdivision (b) of Section 7289.52, in proportion to the amount of
revenues derived from each county's or city and county's, community
college district's, or county office of education's respective tax.
(f) The State Board of Equalization shall transmit to a county or
city and county, a community college district, or a county office of
education all revenues derived from the taxes imposed pursuant to
this chapter and collected by the board pursuant to a contract with
the county or city and county, the community college district, or the
county office of education periodically as promptly as feasible. The
transmittals shall be made at least twice in each calendar quarter.
7289.54. (a) For a distributor that is subject to the
jurisdiction of a county or city and county, a community college
district, or a county office of education that elects to contract
with the State Board of Equalization to administer the tax pursuant
to subdivision (b) of Section 7289.52, the following apply:
(1) Every distributor shall register with the State Board of
Equalization. Every application for registration shall be made upon a
form prescribed by the board and shall set forth the name under
which the applicant transacts or intends to transact business, the
location of his or her place or places of business, and any other
information as the board may require. An application for an account
shall be authenticated in a form or pursuant to methods as may be
prescribed by the board.
(2) (A) There is exempt from any tax the distribution of bottled
sweetened beverages or concentrate distributed by a distributor to a
distributor registered with the board under paragraph (1) when
supported by a properly completed exemption certificate.
(B) The exemption certificate to be provided by a distributor to
another distributor as described in subparagraph (A) shall consist of
a statement that is signed under penalty of perjury by a person with
authority to bind the distributor. The certificate shall be dated
and include the distributor's name and account number. A new
certificate shall be given if any information in the current
certificate changes. The certificate may be included as part of any
business records normally used to document a sale or distribution.
(C) A distributor who has paid a tax, either directly to the State
Board of Equalization or to another distributor registered pursuant
to paragraph (1), and makes a subsequent distribution of bottled
sweetened beverages or concentrate may claim a credit on its return
for the period in which the subsequent sale or distribution occurs.
(3) (A) The return and payment of any tax imposed pursuant to the
authorization of this chapter is due and payable to the State Board
of Equalization quarterly on or before the last day of the month next
succeeding each calendar quarter.
(B) Each distributor shall prepare and file with the State Board
of Equalization a return in the form prescribed by the board
containing information as the board deems necessary or appropriate
for the proper administration of the tax. The return shall be filed
on or before the last day of the calendar month following the
calendar quarter to which it relates, together with a remittance
payable to the board for the amount of tax due for that period.
(4) The State Board of Equalization may prescribe those forms and
reporting requirements as necessary to implement the tax, including,
but not limited to, information regarding the total amount of bottled
sweetened beverages and concentrate sold and the amount of tax due.
(5) The State Board of Equalization shall administer and collect
the tax, to the extent practicable, pursuant to the Fee Collection
Procedures Law (Part 30 (commencing with Section 55001) of Division
2). For purposes of this part, the references in the Fee Collection
Procedures Law to "fee" shall include the tax imposed by this part,
and to "feepayer" shall include a producer required to pay the tax
imposed by this part.
(6) The State Board of Equalization may prescribe, adopt, and
enforce regulations relating to the administration and enforcement of
this chapter.
(7) Returns shall be authenticated in a form or pursuant to
methods as may be prescribed by the board.
(b) If the distributor is within the jurisdiction of a county or
city and county, a community college district, or a county office of
education that has elected not to contract with the State Board of
Equalization to administer the tax, the determinations, collection of
tax, overpayments, refunds, and administration of the tax imposed
under the authorization of this chapter shall be prescribed in the
ordinance or resolution adopted by the county or city and county, the
community college district, or the county office of education.
7289.55. The Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code) shall not apply to any standard, criterion,
procedure, determination, rule, notice, or guideline established or
issued by the State Board of Equalization in the administration of
this chapter.
SEC. 8. Section 17041.5 of the Revenue
and Taxation Code is amended to read:
17041.5. Notwithstanding any statute, ordinance, regulation, rule
or decision to the contrary, no a
city, county, city and county, governmental
subdivision, district, public and quasi-public corporation, municipal
corporation, whether incorporated or not or whether chartered or
not, shall not levy or collect or cause to be levied or
collected any tax upon the income, or any part thereof, of any
person, resident or nonresident. For purposes of this section,
"governmental subdivision, district, public and quasi-public
corporation, municipal corporation, whether incorporated or not or
whether chartered or not" shall not include a community college
district or a county office of education.
This section shall not be construed so as to prohibit the levy or
collection of any otherwise authorized license tax upon a business
measured by or according to gross receipts.
SEC. 9. Section 17041.6 is added to the
Revenue and Taxation Code , to read:
17041.6. (a) A local ordinance or resolution, authorized pursuant
to Chapter 3.53 (commencing with Section 7289) of Part 1.7, imposing
a local personal income tax shall become operative for taxable years
beginning on or after January 1 of the year in which the ordinance
or resolution is approved by the voters of the county or city and
county, the community college district, or the county office of
education.
(b) (1) A local personal income tax may be calculated as a
percentage of taxable income shown on the state personal income tax
return filed for a taxable year by a resident of the county or city
and county, the community college district, or the jurisdiction of
the county office of education in which the local personal income tax
is imposed.
(2) A local personal income tax shall not exceed 1 percent of
taxable income for a taxable year.
(3) A local personal income tax may be imposed on one or more of
the income tax brackets prescribed in Section 17041.
(c) For each taxable year for which a local personal income tax is
operative under subdivision (a), in addition to any other taxes
imposed by this part, an additional tax on the taxable income of a
county or city and county, a community college district, and a county
office of education resident shall be imposed at the rate approved
by the voters of that county or city and county, that community
college district, or that county office of education.
(d) For purposes of applying Part 10.2 (commencing with Section
18401), including, but not limited to, the requirement for the
payment of estimated tax and wage withholding, the tax imposed under
this section shall be treated as if it were imposed under Section
17041.
(e) Any credit authorized under this part shall not be applied to
reduce taxes imposed under this section.
(f) (1) Prior to the operative date of any ordinance or resolution
imposing a local personal income tax, the county or city and county,
the community college district, or the county office of education
shall contract with the Franchise Tax Board to perform all functions
incident to the administration of the local personal income tax.
(2) The contract shall require the county or city and county, the
community college district, or the county office of education to
reimburse the Franchise Tax Board for all refunds, losses, and costs
incurred in the administration and operation of the local personal
income tax.
(g) Any information, information sources, or enforcement remedies
and capabilities available to the county or city and county, the
community college district, or the county office of education shall
be made available to the Franchise Tax Board to be used in
conjunction with, or independent of, the information, information
sources, or remedies and capabilities available to the Franchise Tax
Board for purposes of administering this section.
(h) The Franchise Tax Board may adopt regulations necessary to
administer this section.
(i) (1) Amounts collected pursuant to this section shall be
transmitted to the Treasurer and deposited in the State Treasury to
the credit of the Local Personal Income Tax Account in the General
Fund, which is hereby created.
(2) Notwithstanding Section 13340 of the Government Code, the
moneys in the Local Personal Income Tax Account are hereby
continuously appropriated, without regard to fiscal year, to the
Controller for allocation to each county and city and county,
community college district, and county office of education in which
the local personal income tax is imposed.
(j) Any payments and withholding credits shown on the return shall
be applied in the following order:
(1) Taxes imposed under Part 10 (commencing with Section 17001) or
Part 11 (commencing with Section 23001), including penalties,
interest, and fees, if any, imposed under Part 10.2 (commencing with
Section 18401).
(2) Qualified use tax reported on the return in accordance with
Section 6452.1.
(3) Local personal income taxes imposed under Section 17041.6. If
a taxpayer owes a local personal income tax to more than one county
or city and county, community college district, or county office of
education, and the payments and withholding credits received are
insufficient to satisfy the total amount of all local personal income
taxes due by the taxpayer for the taxable year, the Franchise Tax
Board shall allocate the payments and withholding credits on a pro
rata basis to the county or city and county, community college
district, or county office of education.
(k) For a county office of education, any revenues derived from
the imposition of a local personal income tax as authorized by this
section shall be apportioned to the school districts located within
the jurisdiction of the county office of education on the basis of
average daily attendance.
(l) Notwithstanding Section 19551, the tax officials of a county
or city and county, a community college district, or a county office
of education shall not be required to do either of the following:
(1) Request information from the Franchise Tax Board by affidavit.
(2) Provide the affected person with a copy of the affidavit.
(m) The Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code) shall not apply to any standard, criterion, procedure,
determination, rule, notice, or guideline established or issued by
the Franchise Tax Board pursuant to this section.
SEC. 10. Section 30111 of the
Revenue and Taxation Code is amended to read:
30111. The taxes imposed by this part are in lieu of all other
state, county, municipal, or district taxes on the privilege of
distributing cigarettes or tobacco products.
This section does not prohibit the application of Part 1
(commencing with Section 6001), Part 1.5 (commencing with Section
7200), Part 1.6 (commencing with Section 7251), or Article 2
(commencing with Section 37021) of Part 17 to the sale, storage, use
or other consumption of cigarettes or tobacco products , or a
local ordinance or resolution, authorized pursuant to Chapter 3.53
(commencing with Section 7289), imposing a local alcoholic beverage
tax in accordance with Chapter 3.55 (commencing with Section 7289.20)
.
SEC. 11. Section 32010 of the Revenue
and Taxation Code is amended to read:
32010. The taxes imposed by this part are in lieu of all county,
municipal, or district taxes on the sale of beer, wine, or distilled
spirits.
This section does not prohibit the application of Part 1
(commencing with Section 6001), Part 1.5 (commencing with Section
7200) or Part 1.6 (commencing with Section 7251) to the sale,
storage, use or other consumption of beer, wine, or distilled spirits
, or a local ordinance or resolution, authorized pursuant to
Chapter 3.53 (commencing with Section 7289), imposing a local
cigarette and tobacco products tax in accordance with Chapter 3.56
(commencing with Section 7289.31) . All matter omitted in this
version of the bill appears in the bill as amended in the Senate,
April 27, 2011. (JR11)
