California 2009-2010 Regular Session Status: Passed Assembly

AB 186 — Sales and use taxes: motor vehicle fuel tax: diesel fuel tax.

Last action — Died on Senate third reading file.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2009-2010 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

(1) Existing law requires the Director of Finance to make certain adjustments in one of the formulas used in computing the state's obligation under the California Constitution to provide funding for school districts and community college districts so as to ensure that the modifications in property tax revenue allocation requirements that were made by prior enactments do not have a net fiscal impact on school districts or community college districts, or upon the state's funding obligation to those districts. This bill would additionally specify adjustments on the calculation of the state's constitutional funding obligations that are related to the change in taxes made by this bill. (2) The Sales and Use Tax Law imposes a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. Tangible personal property includes motor vehicle fuel, commonly referred to as gasoline, and including aviation gasoline. Existing law, pursuant to Article XIXB of the California Constitution, requires a portion of the revenues from the sales and use tax on the sale of, and the storage, use, or other consumption of, motor vehicle fuel to be deposited in the Transportation Investment Fund to be used for specified highway, local street and road, and mass transportation purposes. The Sales and Use Tax Law requires a collection of prepayment of retail sales tax at the time that motor vehicle fuel tax or diesel fuel tax is imposed, and on each subsequent sale other than the retail sale. This law requires the State Board of Equalization to establish the prepayment rate based on 80% of the combined state and local sales tax rate, as prescribed. This law authorizes the board to readjust the rate if the price of fuel decreases or increases and the established rate results in prepayments which consistently exceed or are significantly lower than the retailer's sales tax liability. This bill would, on and after July 1, 2010, exempt from those taxes the gross receipts from the sale of, and the storage, use, or other consumption in this state of, motor vehicle fuel thereby eliminating funding from this revenue source for those transportation programs. This exemption would not apply to local sales and use taxes imposed under the Bradley-Burns Uniform Local Sales and Use Tax Law or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law, and specified state sales and use taxes. This bill, on or after July 1, 2011, would impose an additional 1.75% tax on the sale of, and the storage, use, or other consumption in this state of, diesel fuel, with specified exemptions. This bill would also authorize the State Board of Equalization to readjust the prepayment rate if an exemption from sales tax for sales of fuel, as specified, is enacted and the established rate results in or could result in prepayments which consistently exceed or are significantly lower than the retailers' sales tax liability. (3) The Motor Vehicle Fuel Tax Law and the Diesel Fuel Tax Law each impose a tax at the rate of $0.18 per gallon on the removal, entry, sale, delivery, or specified use of motor vehicle fuel, which is commonly referred to as gasoline, including aviation gasoline, and diesel fuel, respectively, and the Motor Vehicle Fuel Tax Law also imposes a tax at the rate of $0.02 per gallon of aircraft jet fuel sold to a fuel user or used by a dealer. Article XIX of the California Constitution requires state-imposed excise tax revenues from fuel used in motor vehicles upon public streets and highways to be used solely for highway and mass transit guideway purposes. This bill would increase the rate of tax on motor vehicle fuel, other than aviation gasoline, by an additional $0.173 per gallon on and after July 1, 2010, as specified. The bill would impose a floor stock tax equal to $0.173 per gallon for the privilege of storing motor vehicle fuel, other than aviation gasoline, on July 1, 2010. Beginning with the 2011–12 fiscal year, and each fiscal year thereafter, the bill would require the State Board of Equalization to annually adjust that fuel tax rate consistent with the requirement that the estimated revenues from that tax increase shall not exceed the estimated revenues attributable to the exemption from sales and use tax for the sale of, or the storage, use, or other consumption of, motor vehicle fuel, other than aviation gasoline, as provided. This bill would clarify that the rate changes to achieve revenue neutrality would be effective for the next fiscal year. This bill would, on July 1, 2011, reduce the rate of tax on diesel fuel from $0.18 per gallon to $0.136 per gallon, subject to adjustment, as specified. (4) This bill would take effect immediately as a tax levy.

Bill Text

Action History

  1. Died on Senate third reading file.

  2. Ordered to third reading.

  3. From committee: Do pass. (Ayes 10. Noes 5.) (March 22).

  4. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.R.

  5. Re-referred to Com. on B. & F.R.

  6. Re-referred to Com. on RLS.

  7. Read second time. To third reading.

  8. Read third time, amended. To second reading.

  9. Read second time. To third reading.

  10. From inactive file. To second reading.

  11. To inactive file on motion of Senator Ducheny.

  12. Read second time. To third reading.

  13. Withdrawn from committee. Ordered placed on second reading file.

  14. Referred to Com. on RLS.

  15. In Senate. Read first time. To Com. on RLS. for assignment.

  16. Read third time, passed, and to Senate. (Ayes 51. Noes 0. Page 1225.)

  17. Read second time. To third reading.

  18. Withdrawn from committee. Ordered placed on second reading file.

  19. Referred to Com. on BUDGET.

  20. From printer. May be heard in committee March 5.

  21. Read first time. To print.

Sponsors

  • Committee on Budget · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Committee on Budget

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Do pass.

Passed 11 Yea · 5 Nay
Party YeaNayPresentNot Voting
Unaffiliated 10500
Democratic 1000
Total 11500
% of votes cast 69%31%0%0%
How each member voted (16)
Member Party Vote
Cogdill — Nay
Harman — Nay
Lowenthal — Yea
Negrete — Yea
Huff — Nay
Ducheny — Yea
Leno — Yea
Liu — Yea
McLeod — Yea
Dutton — Nay
Ashburn — Nay
Simitian — Yea
Alquist — Yea
Wright — Yea
DeSaulnier — Yea
Padilla, Stephen C. Democratic Yea

Official roll call →

AB 186 BUDGET Assembly Third Reading By EVANS

Passed 60 Yea · 0 Nay · 32 Other
Party YeaNayPresentNot Voting
Unaffiliated 540030
Democratic 5000
Republican 1002
Total 600032
% of votes cast 65%0%0%35%
How each member voted (92)
Member Party Vote
Coto — Yea
Carter — Yea
Chesbro — Yea
Charles — Yea
Beall — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Yamada — Yea
Bonnie — Yea
V. — Yea
Manuel — Yea
Perez — Yea
John — Yea
A. — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
Cook — Not Voting
Davis — Yea
Duvall — Not Voting
Bill — Not Voting
Berryhill — Not Voting
Tom — Not Voting
Berryhill — Not Voting
Eng — Yea
Feuer — Yea
Fuentes — Yea
Furutani — Yea
Galgiani — Yea
Fletcher — Not Voting
Gaines — Not Voting
Bass — Yea
Blakeslee — Not Voting
Gilmore — Not Voting
Hagman — Not Voting
Hall — Yea
Hayashi — Yea
Hernandez — Yea
Huber — Yea
Huffman — Yea
Knight — Not Voting
Krekorian — Yea
Logue — Not Voting
Mendoza — Yea
Miller — Not Voting
Nava — Yea
Nestande — Not Voting
Price — Yea
Ruskin — Yea
Silva — Not Voting
Skinner — Yea
Smyth — Not Voting
Swanson — Yea
Torlakson — Yea
Torrico — Yea
Audra — Not Voting
Tran — Not Voting
Villines — Not Voting
Adams — Not Voting
Ammiano — Yea
Anderson — Not Voting
Block — Yea
Blumenfield — Yea
Brownley — Yea
Buchanan — Yea
Harkey — Not Voting
Hill — Yea
Jeffries — Not Voting
Lieu — Yea
Ma — Yea
Monning — Yea
Nielsen — Not Voting
Solorio — Yea
Torres — Yea
Conway — Not Voting
Emmerson — Not Voting
Evans — Yea
DeVore — Not Voting
Fuller — Not Voting
Garrick — Not Voting
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Fong, Mike Democratic Yea
Lowenthal, Josh Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Not Voting
Strickland, Tony Republican Not Voting

Official roll call →

Subjects

taxation transportation
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Frequently asked questions

What does AB 186 do?
(1) Existing law requires the Director of Finance to make certain adjustments in one of the formulas used in computing the state's obligation under the California Constitution to provide funding for school districts and community college districts so as to ensure that the modifications in property tax revenue allocation requirements that were made by prior enactments do not have a net fiscal impact on school districts or community college districts, or upon the state's funding obligation to those districts. This bill would additionally specify adjustments on the calculation of the state's constitutional funding obligations that are related to the change in taxes made by this bill. (2) The Sales and Use Tax Law imposes a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. Tangible personal property includes motor vehicle fuel, commonly referred to as gasoline, and including aviation gasoline. Existing law, pursuant to Article XIXB of the California Constitution, requires a portion of the revenues from the sales and use tax on the sale of, and the storage, use, or other consumption of, motor vehicle fuel to be deposited in the Transportation Investment Fund to be used for specified highway, local street and road, and mass transportation purposes. The Sales and Use Tax Law requires a collection of prepayment of retail sales tax at the time that motor vehicle fuel tax or diesel fuel tax is imposed, and on each subsequent sale other than the retail sale. This law requires the State Board of Equalization to establish the prepayment rate based on 80% of the combined state and local sales tax rate, as prescribed. This law authorizes the board to readjust the rate if the price of fuel decreases or increases and the established rate results in prepayments which consistently exceed or are significantly lower than the retailer's sales tax liability. This bill would, on and after July 1, 2010, exempt from those taxes the gross receipts from the sale of, and the storage, use, or other consumption in this state of, motor vehicle fuel thereby eliminating funding from this revenue source for those transportation programs. This exemption would not apply to local sales and use taxes imposed under the Bradley-Burns Uniform Local Sales and Use Tax Law or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law, and specified state sales and use taxes. This bill, on or after July 1, 2011, would impose an additional 1.75% tax on the sale of, and the storage, use, or other consumption in this state of, diesel fuel, with specified exemptions. This bill would also authorize the State Board of Equalization to readjust the prepayment rate if an exemption from sales tax for sales of fuel, as specified, is enacted and the established rate results in or could result in prepayments which consistently exceed or are significantly lower than the retailers' sales tax liability. (3) The Motor Vehicle Fuel Tax Law and the Diesel Fuel Tax Law each impose a tax at the rate of $0.18 per gallon on the removal, entry, sale, delivery, or specified use of motor vehicle fuel, which is commonly referred to as gasoline, including aviation gasoline, and diesel fuel, respectively, and the Motor Vehicle Fuel Tax Law also imposes a tax at the rate of $0.02 per gallon of aircraft jet fuel sold to a fuel user or used by a dealer. Article XIX of the California Constitution requires state-imposed excise tax revenues from fuel used in motor vehicles upon public streets and highways to be used solely for highway and mass transit guideway purposes. This bill would increase the rate of tax on motor vehicle fuel, other than aviation gasoline, by an additional $0.173 per gallon on and after July 1, 2010, as specified. The bill would impose a floor stock tax equal to $0.173 per gallon for the privilege of storing motor vehicle fuel, other than aviation gasoline, on July 1, 2010. Beginning with the 2011–12 fiscal year, and each fiscal year thereafter, the bill would require the State Board of Equalization to annually adjust that fuel tax rate consistent with the requirement that the estimated revenues from that tax increase shall not exceed the estimated revenues attributable to the exemption from sales and use tax for the sale of, or the storage, use, or other consumption of, motor vehicle fuel, other than aviation gasoline, as provided. This bill would clarify that the rate changes to achieve revenue neutrality would be effective for the next fiscal year. This bill would, on July 1, 2011, reduce the rate of tax on diesel fuel from $0.18 per gallon to $0.136 per gallon, subject to adjustment, as specified. (4) This bill would take effect immediately as a tax levy.
Who sponsors AB 186?
AB 186 is sponsored by Committee on Budget.
What is the current status of AB 186?
This bill died with 2009-2010 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 186?
Track AB 186 free on One Click Politics — get push/email alerts when it moves.

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