Sales, use, income, fuel, and oil severance taxes.

The Motor Vehicle Fuel License Tax Law imposes a tax of $0.18 per gallon of fuel and requires, if the federal fuel tax is reduced below the rate of $0.09 per gallon and federal financial allocations to this state are reduced or eliminated, that the tax rate be increased so that the combined state and federal tax rate per gallon equals $0.27. The Diesel Fuel Tax Law imposes a tax of $0.18 upon each gallon of fuel, as provided. This bill would eliminate those fuel taxes on April 1, 2009. Existing law imposes state sales and use taxes on retailers and on the storage, use, or other consumption of tangible personal property in this state at the combined rate of 6 14% of the gross receipts from the retail sale of tangible personal property in this state, and of the sales price of tangible personal property purchased from any retailer for storage, use, or other consumption in this state. This bill would, from February 1, 2009, impose an additional sales and use tax rate of 12 of 1%. This bill would also provide an exemption from sales and use taxes for the sale or use of motor vehicle fuel, as provided. The Personal Income Tax Law imposes taxes based upon taxable income. This bill would, for taxable years beginning on or after January 1, 2009, impose an additional tax at a specified rate of tax liability, as specified. Existing law imposes various taxes, including taxes on the privilege of engaging in certain activities. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges. This bill would impose an oil severance tax, on and after July 1, 2009, upon any producer for the privilege of severing oil from the earth or water in this state for sale, transport, consumption, storage, profit, or use, as provided, at a specified rate of the gross value of each barrel of oil severed. The tax would be administered by the Department of Conservation and would be collected pursuant to the procedures set forth in the Fee Collection Procedures Law. The bill would require the department to deposit all tax revenues, penalties, and interest collected pursuant to these provisions into the General Fund. Because this bill would expand the application of the Fee Collection Procedures Law, the violation of which is a crime, it would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on December 1, 2008. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on December 1, 2008, pursuant to the California Constitution. This bill would take effect immediately as a tax levy.