Sales and use taxes: exemption: energy efficient products.

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 purchased from a retailer for storage, use, or other consumption in this state. State sales and use tax revenues are transferred to the General Fund and to various special funds. Existing law provides various exemptions from those taxes. This bill would also exempt from those taxes from April 1 to and including April 30 of each year from 2010 to 2020, inclusive, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, qualified renewable energy systems, as specified. The bill would make its operation contingent upon the adoption of greenhouse gas emission fees under the California Global Warming Solutions Act of 2006 and the appropriation by the Legislature of revenue from the fees sufficient to fully offset the revenue loss to the General Fund due to the exemption. The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and the Transactions and Use Tax Law authorizes districts, as specified, to impose transactions and use taxes in conformity with the Sales and Use Tax Law. Exemptions from state sales and use taxes enacted by the Legislature are incorporated into the those taxes. Section 2230 of the Revenue and Taxation Code provides that the state will reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions. This bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for sales and use tax revenues lost by them pursuant to this bill. This bill would take effect immediately as a tax levy.