Bill Text: CA SBX17 | 2015-2016 | Regular Session | Amended
Bill Title: Diesel sales and use tax.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [SBX17 Detail]
Download: California-2015-SBX17-Amended.html
BILL NUMBER: SBX1 7 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 3, 2015
INTRODUCED BY Senator Allen
JULY 16, 2015
An act to amend, repeal, and add Sections 6051.8 and
6201.8 of amend Section 99312.1 of the Public
Utilities Code, and to amend Sections 6051.8, 6201.8, and 60050 of
the Revenue and Taxation Code, relating to taxation, and making
an appropriation therefor, to take effect immediately, tax
levy. therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 7, as amended, Allen. Diesel sales and use tax.
Existing law, beyond the sales and use tax rate generally
applicable, imposes an additional sales and use tax on diesel fuel at
the rate of 1.75%, subject to certain exemptions, and provides for
the net revenues collected from the additional tax to transferred to
the Public Transportation Account. Existing law continuously
appropriates these revenues to the Controller, for allocation by
formula to transportation agencies for public transit purposes.
This bill, as of July 1, 2016, would increase the additional sales
and use tax rate on diesel fuel to 5.25%. By increasing the revenues
deposited in a continuously appropriated fund, the bill would
thereby make an appropriation. The bill would restrict
expenditures of revenues from the July 1, 2016, increase in the
sales and use tax on diesel fuel to transit capital purposes
and certain transit services. The bill would require an existing
required audit of transit operator finances to verify that these new
revenues have been expended in conformance with these specific
restrictions and all other generally applicable requirements.
Existing law requires the State Board of Equalization to annually
modify the diesel excise tax rate on a going-forward basis to account
for increases in the sales and use tax on diesel and maintain
revenue neutrality, as specified.
This bill would provide that the increase in the additional sales
and use tax on diesel fuel imposed by the bill shall not be
considered by the board in its annual modification of the diesel
excise tax rate.
This bill would include a change in state statute that would
result in a taxpayer paying a higher tax within the meaning of
Section 3 of Article XIII A of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.
This bill would take effect immediately as a tax levy.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 99312.1 of the
Public Utilities Code is amended to read:
99312.1. (a) Revenues transferred to the
Public Transportation Account pursuant to Sections 6051.8 and 6201.8
of the Revenue and Taxation Code are hereby continuously appropriated
to the Controller for allocation as follows:
(a)
(1) Fifty percent for allocation to transportation
planning agencies, county transportation commissions, and the San
Diego Metropolitan Transit Development Board pursuant to Section
99314.
(b)
(2) Fifty percent for allocation to transportation
agencies, county transportation commissions, and the San Diego
Metropolitan Transit Development Board for purposes of Section 99313.
For
(b) For purposes of this chapter,
the revenues allocated pursuant to this section shall be subject to
the same requirements as revenues allocated pursuant to subdivisions
(b) and (c), as applicable, of Section 99312.
(c) The revenues transferred to the Public Transportation Account
that are attributable to the increase in the sales and use tax on
diesel fuel pursuant to subdivision (b) of Section 6051.8 of the
Revenue and Taxation Code and subdivision (b) of Section 6201.8 of
the Revenue and Taxation Code, upon allocation pursuant to Sections
99313 and 99314, shall only be expended on transit capital projects,
or on services to maintain or repair a transit operator's existing
transit vehicle fleet or existing transit facilities, including
rehabilitation or modernization of existing vehicles or facilities,
or for the design, acquisition, and construction of new vehicles or
facilities that improve existing transit services or enable the
implementation of future planned transit services, or on services
that complement local efforts for repair and improvement of local
transportation infrastructure. The audit of transit operator finances
required pursuant to Section 99245 shall verify that these revenues
have been expended in conformance with these specific requirements
and all other generally applicable requirements.
SECTION 1. SEC. 2. Section 6051.8 of
the Revenue and Taxation Code is amended to read:
6051.8. (a) Except as provided by Section 6357.3, in addition to
the taxes imposed by this part, for the privilege of selling tangible
personal property at retail a tax is hereby imposed upon all
retailers at the rate of 1.75 percent of the gross receipts of any
retailer from the sale of all diesel fuel, as defined in Section
60022, sold at retail in this state on and after the
operative date of this subdivision. state.
(b) Notwithstanding subdivision (a), for the 2011-12 fiscal year
only, the rate referenced in subdivision (a) shall be 1.87 percent.
(c) Notwithstanding subdivision (a), for the 2012-13 fiscal year
only, the rate referenced in subdivision (a) shall be 2.17 percent.
(d) Notwithstanding subdivision (a), for the 2013-14 fiscal year
only, the rate referenced in subdivision (a) shall be 1.94 percent.
(b) Notwithstanding subdivision (a), commencing July 1, 2016, the
rate referenced in subdivision (a) shall be increased to 5.25
percent.
(e)
(c) Notwithstanding subdivision (b) of Section 7102,
all of the revenues, less refunds, collected pursuant to this section
shall be estimated by the State Board of Equalization, with the
concurrence of the Department of Finance, and transferred quarterly
to the Public Transportation Account in the State Transportation Fund
for allocation pursuant to Section 99312.1 of the Public Utilities
Code.
(f) This section shall become inoperative on July 1, 2016, and, as
of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 2. Section 6051.8 is added to the Revenue
and Taxation Code, to read:
6051.8. (a) Except as provided by Section 6357.3, in addition to
the taxes imposed by this part, for the privilege of selling tangible
personal property at retail a tax is hereby imposed upon all
retailers at the rate of 5.25 percent of the gross receipts of any
retailer from the sale of all diesel fuel, as defined in Section
60022, sold at retail in this state.
(b) Notwithstanding subdivision (b) of Section 7102, all of the
revenues, less refunds, collected pursuant to this section shall be
estimated by the State Board of Equalization, with the concurrence of
the Department of Finance, and transferred quarterly to the Public
Transportation Account in the State Transportation Fund for
allocation pursuant to Section 99312.1 of the Public Utilities Code.
(c) This section shall become operative on July 1, 2016.
SEC. 3. Section 6201.8 of the Revenue and Taxation Code is amended
to read:
6201.8. (a) Except as provided by Section 6357.3, in addition to
the taxes imposed by this part, an excise tax is hereby imposed on
the storage, use, or other consumption in this state of diesel fuel,
as defined in Section 60022, at the rate of 1.75 percent of the sales
price of the diesel fuel on and after the operative date of
this subdivision. fuel.
(b) Notwithstanding subdivision (a), for the 2011-12 fiscal year
only, the rate referenced in subdivision (a) shall be 1.87 percent.
(c) Notwithstanding subdivision (a), for the 2012-13 fiscal year
only, the rate referenced in subdivision (a) shall be 2.17 percent.
(d) Notwithstanding subdivision (a), for the 2013-14 fiscal year
only, the rate referenced in subdivision (a) shall be 1.94 percent.
(b) Notwithstanding subdivision (a), commencing July 1, 2016, the
rate referenced in subdivision (a) shall be increased to 5.25
percent.
(e)
(c) Notwithstanding subdivision (b) of Section 7102,
all of the revenues, less refunds, collected pursuant to this section
shall be estimated by the State Board of Equalization, with the
concurrence of the Department of Finance, and transferred quarterly
to the Public Transportation Account in the State Transportation Fund
for allocation pursuant to Section 99312.1 of the Public Utilities
Code.
(f) This section shall become inoperative on July 1, 2016, and, as
of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 4. Section 6201.8 is added to the Revenue
and Taxation Code, to read:
6201.8. (a) Except as provided by Section 6357.3, in addition to
the taxes imposed by this part, an excise tax is hereby imposed on
the storage, use, or other consumption in this state of diesel fuel,
as defined in Section 60022, at the rate of 5.25 percent of the sales
price of the diesel fuel.
(b) Notwithstanding subdivision (b) of Section 7102, all of the
revenues, less refunds, collected pursuant to this section shall be
estimated by the State Board of Equalization, with the concurrence of
the Department of Finance, and transferred quarterly to the Public
Transportation Account in the State Transportation Fund for
allocation pursuant to Section 99312.1 of the Public Utilities Code.
(c) This section shall become operative on July 1, 2016.
SEC. 5. This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.
SEC. 4. Section 60050 of the Revenue
and Taxation Code is amended to read:
60050. (a) (1) A tax of eighteen cents ($0.18) is hereby imposed
upon each gallon of diesel fuel subject to the tax in Sections 60051,
60052, and 60058.
(2) If the federal fuel tax is reduced below the rate of fifteen
cents ($0.15) per gallon and federal financial allocations to this
state for highway and exclusive public mass transit guideway purposes
are reduced or eliminated correspondingly, the tax rate imposed by
paragraph (1), including any reduction or adjustment pursuant to
subdivision (b), on and after the date of the reduction, shall be
increased by an amount so that the combined state rate under
paragraph (1) and the federal tax rate per gallon equal what it would
have been in the absence of the federal reduction.
(3) If any person or entity is exempt or partially exempt from the
federal fuel tax at the time of a reduction, the person or entity
shall continue to be exempt under this section.
(b) (1) On July 1, 2011, the tax rate specified in paragraph (1)
of subdivision (a) shall be reduced to thirteen cents ($0.13) and
every July 1 thereafter shall be adjusted pursuant to paragraphs (2)
and (3).
(2) For the 2012-13 fiscal year and each fiscal year thereafter,
the board shall, on or before March 1 of the fiscal year immediately
preceding the applicable fiscal year, adjust the rate reduction in
paragraph (1) in that manner as to result in a revenue loss
attributable to paragraph (1) that will equal the amount of revenue
gain attributable to Sections 6051.8 and 6201.8, based on estimates
made by the board, and that rate shall be effective during the state'
s next fiscal year.
(3) In order to maintain revenue neutrality for each year,
beginning with the rate adjustment on or before March 1, 2013, the
adjustment under paragraph (2) shall take into account the extent to
which the actual amount of revenues derived pursuant to Sections
6051.8 and 6201.8 and the revenue loss attributable to this
subdivision resulted in a net revenue gain or loss for the fiscal
year ending prior to the rate adjustment date on or before March 1.
(4) The intent of paragraphs (2) and (3) is to ensure that the act
adding this subdivision and Sections 6051.8 and 6201.8 does not
produce a net revenue gain in state taxes.
(5) Notwithstanding any other provision of this subdivision, the
board shall not make any adjustments to the excise tax rate as a
result of the increase in the sales and use tax on diesel fuel
pursuant to subdivision (b) of Section 6051.8 and subdivision (b) of
Section 6201.8.
