BILL NUMBER: SB 808 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 11, 2013
INTRODUCED BY Senator De León
FEBRUARY 22, 2013
An act to amend Section 18872 of 6357.5
of, and to add Section 6357.6 to, the Revenue and Taxation
Code, to amend Section 322 of, and to add Section 337 to, the
Unemployment Insurance Code, relating to taxation , to
take effect immediately, tax levy .
LEGISLATIVE COUNSEL'S DIGEST
SB 808, as amended, De León. Personal income taxes:
voluntary contributions. Sales and use taxes: air
common carrier: employing Medi-Cal recipients.
The Sales and Use Tax Law imposes a tax on the gross receipts from
the sale in this state of, or the storage, use, or other consumption
in this state of, tangible personal property. That law provides
various exemptions from that tax, including an exemption for the
gross receipts from the sale of, and the storage, use, or other
consumption of, fuel and petroleum products sold to an air common
carrier for immediate consumption or shipment use in the conduct of
its business as an air common carrier on an international flight.
This bill would prohibit the exemption for the sole of fuel and
petroleum products to an air common carrier during a calendar year
following a year in which the air common carrier fails to send
specified information to the Employment Development Department, or a
year in which the State Board of Equalization provides notification
that the air common carrier employs people enrolled in Medi-Cal or a
contractor or subcontractor of the air common carrier employs people
enrolled in Medi-Cal, as specified. This bill would subject the
carrier to liability for payment of sales tax as if it were a
retailer making a retail sale of the tangible personal property at
the time of the purchase, as prescribed. This bill would require the
Employment Development Department, in coordination and consultation
with the State Department of Health Care Services, to collect and
identify specified information relating to the air common carriers,
and would require the Employment Development Department and the State
Board of Equalization to provide specified notifications related to
air common carriers and the status of the exemption, as prescribed.
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.
Existing law states that it is the intent of the Legislature to
encourage persons who prepare tax returns, as specified, to inform
their clients, in writing, that they may make a voluntary
contribution to specified funds or programs as provided on the state
income tax return.
This bill would make a technical, nonsubstantive change to this
provision.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6357.5 of the
Revenue and Taxation Code is amended to read:
6357.5. (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 of, fuel and petroleum products sold to an air
common carrier for immediate consumption or shipment in the conduct
of its business as an air common carrier, on an international flight.
(b) To qualify for the exemption, the air common carrier shall
furnish to the seller an exemption certificate in writing stating the
quantity of fuel and petroleum products claimed as exempt. That
certificate shall bear the purchaser's valid seller's permit number
or valid fuel exemption registration number and shall be
substantially in the form prescribed by the board. Acceptance in good
faith of that certificate shall relieve the seller from liability
for the sales tax.
(c) "Immediate consumption or shipment," as used in this section,
means that the delivery of the fuel and petroleum products by the
seller is directly into an aircraft for consumption or transportation
on an international flight and not for storage by the purchaser or
any third party.
(d) "International flight," as used in this section, is a flight
whose final destination is a point outside of the United States.
(e) Any air common carrier claiming exemption under this section
who is not required to hold a valid seller's permit, shall be
required to register with the board and obtain a fuel exemption
registration number, and shall be required to file returns as the
board may prescribe, either if the board notifies the carrier that
returns must be filed or if the carrier is liable for taxes based
upon consumption or transportation of fuel or petroleum products
erroneously claimed as exempt under this section. A common carrier
required to hold a fuel exemption registration number shall be
subject to all applicable provisions of this part, Part 1.5
(commencing with Section 7200), and Part 1.6 (commencing with Section
7251).
(f) An air common carrier claiming an exemption under this section
upon request, shall make available to the board records, including,
but not limited to, a copy of a log abstract, an air waybill, or a
cargo manifest, documenting its consumption or transportation of the
fuel or petroleum products on an international flight and the amount
claimed as exempt. If the carrier fails to provide these records upon
request, the board may revoke the carrier's fuel exemption
registration number.
(g) The board may require any air common carrier claiming an
exemption under this section and required to obtain a fuel exemption
registration number, to place with it such security as the board may
determine pursuant to Section 6701.
(h) Pursuant to this section, any use of the fuel and petroleum
products by the purchasing carrier, other than that incident to the
delivery of the fuel and petroleum products to the carrier and the
consumption or transportation of the fuel and petroleum products by
the carrier on an international flight for use in the conduct of its
business as a common carrier, or a failure of the carrier to document
its consumption or transportation of the fuel and petroleum products
on an international flight, shall subject the carrier to liability
for payment of sales tax as if it were a retailer making a retail
sale of the property at the time of that use or failure, and the
sales price of the property to it shall be deemed to be the gross
receipts from the retail sale.
(i) In the event that the federal exemption provided in Section
1309 of Title 19 of the United States Code, relating to supplies for
certain vessels and aircraft, is repealed, this section is repealed
as of that date.
(j) The exemption provided by this section shall not apply if the
fuel and petroleum products are sold to an air common carrier during
a calendar year following a year in which the air common carrier
fails to send the information required under subdivision (a) of
Section 6357.6 to the Employment Development Department or a year in
which the board provided notification pursuant to paragraph (1) of
subdivision (c) of Section 6357.6. Any exemption claimed for that
purchase shall subject the carrier to liability for payment of sales
tax as if it were a retailer making a retail sale of the tangible
personal property at the time of the purchase, and the sales price of
the property to it shall be deemed to be the gross receipts from the
retail sale.
SEC. 2. Section 6357.6 is added to the
Revenue and Taxation Code , to read:
6357.6. (a) On or before June 30, 2014, and on or before every
June 30 thereafter, an air common carrier that furnishes or intends
to furnish an exemption certificate under Section 6357.5 for fuel
purchased during the next calendar year shall send the following
information to the Employment Development Department:
(1) A list of the names, addresses, and telephone numbers of
persons with which the air common carrier has entered into a contract
or agreement for labor or services in the state.
(2) A list of the names, addresses, and telephone numbers of
persons with which the persons listed in paragraph (1) have entered
into a contract or agreement for labor or services performed in the
state for or on behalf of the air common carrier, regardless of
whether the person has a direct contractual relationship with the air
common carrier.
(b) On or before November 1, 2014, and on or before every November
1 thereafter, the Employment Development Department shall send a
notification to the board of an air common carrier, or person listed
in paragraph (1) or (2), that employs a person enrolled in the
Medi-Cal program.
(c) (1) Upon receipt of the notification in subdivision (b), the
board shall, on or before December 1, 2014, and on or before every
December 1 thereafter, provide notification to an air common carrier
to inform the carrier that the exemption under Section 6357.5 shall
not apply to a purchase of fuel and petroleum products during the
following calendar year, and any subsequent calendar year, unless a
subsequent notification described in paragraph (2) is provided.
(2) If the Employment Development Department sends a notification
pursuant to subdivision (b) to the board that does not contain an air
common carrier to which the board provided notification in paragraph
(1), the board shall, on or before December 1 of the calendar year
in which the air common carrier was not allowed the exemption, send a
subsequent notification to the air common carrier informing that
carrier that the exemption under Section 6357.5 shall apply during
the following calendar year.
SEC. 3. Section 322 of the Unemployment
Insurance Code is amended to read:
322. The department may exchange information with other
governmental departments and agencies, both federal and state, which
are concerned with the administration of unemployment insurance, or
the collection of taxes which may be used to finance the
administration of unemployment insurance, or the relief of unemployed
or destitute individuals, or legislation concerning, regulating, or
in any manner affecting the obligations arising out of an
employer-employee relation, with the board and the State
Department of Health Care Services for the administration of Section
6357.6 of the Revenue and Taxation Code, and with other
departments or agencies of government as the department deems
necessary or desirable for the proper administration of this division
in accordance with authorized regulations.
SEC. 4. Section 337 is added to the
Unemployment Insurance Code , to read:
337. The department, in consultation and coordination with the
State Department of Health Care Services, shall do all the following:
(a) Collect the names of air common carriers and persons described
under paragraph (1) or (2) of subdivision (a) of Section 6357.6 of
the Revenue and Taxation Code.
(b) Identify the names of any air common carrier that employs a
person enrolled in the Medi-Cal program, or the name of any air
common carrier that contracts or subcontracts with a person for labor
or services for or on behalf of the air common carrier in the state
that employs a person enrolled in the Medi-Cal program.
SEC. 5. This act provides for a tax levy within the
meaning of Article IV of the Constitution and shall go into
immediate effect.
SECTION 1. Section 18872 of the Revenue and
Taxation Code is amended to read:
18872. The Legislature finds and declares that it is important to
inform taxpayers of their ability to make voluntary contributions to
certain funds or programs, as provided on the state income tax
return. The Legislature further finds and declares that many
taxpayers remain unaware of the voluntary contribution check-offs on
the state income tax return. Therefore, it is the intent of the
Legislature to encourage all persons who prepare state income tax
returns to inform their clients in writing, prior to the completion
of any tax return, that they may make a contribution to any voluntary
contribution check-off on the state income tax return if they so
choose.