BILL NUMBER: SB 808 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 23, 2013
AMENDED IN SENATE APRIL 11, 2013
INTRODUCED BY Senator De León
FEBRUARY 22, 2013
An act to amend Section 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
C ode , relating to taxation, to take effect
immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 808, as amended, De León. Sales and use taxes: air common
carrier: employing Medi-Cal recipients.
The Sales and Use Tax Law imposes
Existing sales and use tax laws impose a tax on
retailers measured by the gross receipts from the sale of
tangible personal property sold at retail in this state
of , or on the storage, use, or other
consumption in this state of, of
tangible personal property purchased from a retailer for
storage, use, or other consumption in this state .
That law The Sales and Use Tax Law provides
various exemptions from that tax those taxes
, 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 exclude from
the exemption for the sole
sale 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 State Board
of Equalization , 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.
Vote: 2/3. Appropriation: no. Fiscal committee: 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 Notwithstanding
subdivision (a), 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 board . 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 cost 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:
documentation to the board that demonstrates that
contractors and subcontractors performing labor or services on behalf
of the air common carrier are providing employer-provided health
care coverage for employees and their dependents.
(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),
(b) If the board fails to receive the
documentation required in subdivision (a), 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.
the documentation is subsequently submitted.
(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.
(c) The documentation required by this section shall be submitted
in a format and manner prescribed by the board.
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. SEC. 3. This act provides for
a tax levy within the meaning of Article IV of the Constitution and
shall go into immediate effect.