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| 1 | + | Amended IN Senate April 21, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 862Introduced by Senator Umberg(Coauthor: Assembly Member Quirk-Silva)January 20, 2022An act to amend Section 242 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 862, as amended, Umberg. Property tax: exemptions: personal property used for space flight activities.The California Constitution authorizes the Legislature to classify personal property for differential taxation or for exemption by means of a statute approved by a 2/3 vote of the membership of each house. Pursuant to this constitutional authorization, existing property tax law, for the January 1, 2014, lien date to and including the January 1, 2024, lien date, exempts qualified property, as defined, for use in space flight, including tangible personal property that has space flight capacity, as specified. Existing law repeals this exemption as of July 1, 2025. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.This bill, on or after January 1, 2022, would expand the exemption for qualified property used in space flight to include tangible personal property used for space flight activities, including tangible personal property that has a role as ground support infrastructure equipment for space flight launch preparation and operations, as specified, or that has role in testing space flight engines and components at a test site, as specified. The bill would also extend the operation of this exemption indefinitely. The bill would state the intent of the Legislature to comply with the additional information requirement for any bill authorizing a new tax expenditure. By expanding the scope of this exemption, and by extending the operation of this exemption indefinitely, this bill 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.This bill would take effect immediately as a tax levy.Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 242 of the Revenue and Taxation Code is amended to read:242. (a) There is exempted from the taxes imposed by this part qualified property used for space flight activities.(b) For purposes of this section:(1) Qualified property means any of the following:(A) Tangible personal property, whether raw materials, work in process or finished goods, that has, or upon manufacture, assembly, or installation has, any of the following:(i) Space flight capacity, including, but not limited to, an orbital space facility, space propulsion system, space vehicle, launch vehicle, satellite, or space station of any kind, and any component thereof, regardless of whether that property is to be ultimately returned to this state.(ii) A role as ground support infrastructure equipment for space flight launch preparation and operations, including, but not limited to, including any of the following:(I) Equipment necessary to distribute commodities to the launch site, space propulsion system, space vehicle, or launch vehicle.(II) Housing data and communication support systems.(III) Testing space propulsion systems, space vehicles, or launch vehicles, or any component thereof.(iii) A role in testing space flight engines and components at a test site, including, but not limited to, including any of the following:(I) Test stands for testing liquid propulsion rocket engines, rocket structural elements, and integrated rocket assemblies, including all propellant and commodity delivery systems.(II) Instrumentation, command, and control systems for operating test stands. (III) Environmental protection, safety, and occupational health equipment.(B) Fuel of a quality that is not adaptable for use in ordinary motor vehicles, but is produced, sold, and used exclusively for space flight.(2) Space flight means any flight designed for suborbital, orbital, or interplanetary travel by a space vehicle, satellite, space facility, or space station of any kind.(c) The exemption established by this section shall not be denied by reason of failure, postponement, or cancellation of a launch of a space vehicle, satellite, space facility, or space station of any kind, or the destruction of any launch vehicle or ground support infrastructure, equipment, or any component of a launch vehicle or ground support infrastructure. equipment.(d) This section shall be operative from the January 1, 2014, lien date and for every lien date thereafter.(e) A taxpayer shall provide, upon request of the assessor, evidence that the qualified property exempted from the taxes imposed by this part pursuant to this section has been or will be used as described in subparagraph (A) of paragraph (1) of subdivision (b).(f) The exemption provided by this section from the taxes imposed by this part shall be limited to taxpayers that have a primary business purpose in space flight activities.(g) The amendments made to this section by the act adding this subdivision shall apply commencing with the January 1, 2022, lien date and for every lien date thereafter.SEC. 2. It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.SEC. 3. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.SEC. 4. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
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| 3 | + | Amended IN Senate April 21, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 862Introduced by Senator Umberg(Coauthor: Assembly Member Quirk-Silva)January 20, 2022An act to amend Section 242 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 862, as amended, Umberg. Property tax: exemptions: personal property used for space flight activities.The California Constitution authorizes the Legislature to classify personal property for differential taxation or for exemption by means of a statute approved by a 2/3 vote of the membership of each house. Pursuant to this constitutional authorization, existing property tax law, for the January 1, 2014, lien date to and including the January 1, 2024, lien date, exempts qualified property, as defined, for use in space flight, including tangible personal property that has space flight capacity, as specified. Existing law repeals this exemption as of July 1, 2025. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.This bill, on or after January 1, 2022, would expand the exemption for qualified property used in space flight to include tangible personal property used for space flight activities, including tangible personal property that has a role as ground support infrastructure equipment for space flight launch preparation and operations, as specified, or that has role in testing space flight engines and components at a test site, as specified. The bill would also extend the operation of this exemption indefinitely. The bill would state the intent of the Legislature to comply with the additional information requirement for any bill authorizing a new tax expenditure. By expanding the scope of this exemption, and by extending the operation of this exemption indefinitely, this bill 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.This bill would take effect immediately as a tax levy.Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: YES | |
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| 5 | + | Amended IN Senate April 21, 2022 | |
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| 7 | - | Amended IN Senate April 27, 2022 | |
| 8 | 7 | Amended IN Senate April 21, 2022 | |
| 9 | 8 | ||
| 10 | 9 | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION | |
| 11 | 10 | ||
| 12 | 11 | Senate Bill | |
| 13 | 12 | ||
| 14 | 13 | No. 862 | |
| 15 | 14 | ||
| 16 | 15 | Introduced by Senator Umberg(Coauthor: Assembly Member Quirk-Silva)January 20, 2022 | |
| 17 | 16 | ||
| 18 | 17 | Introduced by Senator Umberg(Coauthor: Assembly Member Quirk-Silva) | |
| 19 | 18 | January 20, 2022 | |
| 20 | 19 | ||
| 21 | 20 | An act to amend Section 242 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 22 | 21 | ||
| 23 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 24 | 23 | ||
| 25 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 26 | 25 | ||
| 27 | 26 | SB 862, as amended, Umberg. Property tax: exemptions: personal property used for space flight activities. | |
| 28 | 27 | ||
| 29 | - | The California Constitution authorizes the Legislature to classify personal property for differential taxation or for exemption by means of a statute approved by a 2/3 vote of the membership of each house. Pursuant to this constitutional authorization, existing property tax law, for the January 1, 2014, lien date to and including the January 1, 2024, lien date, exempts qualified property, as defined, for use in space flight, including tangible personal property that has space flight capacity, as specified. Existing law repeals this exemption as of July 1, 2025. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.This bill | |
| 28 | + | The California Constitution authorizes the Legislature to classify personal property for differential taxation or for exemption by means of a statute approved by a 2/3 vote of the membership of each house. Pursuant to this constitutional authorization, existing property tax law, for the January 1, 2014, lien date to and including the January 1, 2024, lien date, exempts qualified property, as defined, for use in space flight, including tangible personal property that has space flight capacity, as specified. Existing law repeals this exemption as of July 1, 2025. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.This bill, on or after January 1, 2022, would expand the exemption for qualified property used in space flight to include tangible personal property used for space flight activities, including tangible personal property that has a role as ground support infrastructure equipment for space flight launch preparation and operations, as specified, or that has role in testing space flight engines and components at a test site, as specified. The bill would also extend the operation of this exemption indefinitely. The bill would state the intent of the Legislature to comply with the additional information requirement for any bill authorizing a new tax expenditure. By expanding the scope of this exemption, and by extending the operation of this exemption indefinitely, this bill 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.This bill would take effect immediately as a tax levy. | |
| 30 | 29 | ||
| 31 | 30 | The California Constitution authorizes the Legislature to classify personal property for differential taxation or for exemption by means of a statute approved by a 2/3 vote of the membership of each house. Pursuant to this constitutional authorization, existing property tax law, for the January 1, 2014, lien date to and including the January 1, 2024, lien date, exempts qualified property, as defined, for use in space flight, including tangible personal property that has space flight capacity, as specified. Existing law repeals this exemption as of July 1, 2025. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. | |
| 32 | 31 | ||
| 33 | - | This | |
| 32 | + | This bill, on or after January 1, 2022, would expand the exemption for qualified property used in space flight to include tangible personal property used for space flight activities, including tangible personal property that has a role as ground support infrastructure equipment for space flight launch preparation and operations, as specified, or that has role in testing space flight engines and components at a test site, as specified. The bill would also extend the operation of this exemption indefinitely. The bill would state the intent of the Legislature to comply with the additional information requirement for any bill authorizing a new tax expenditure. | |
| 34 | 33 | ||
| 35 | - | By expanding the scope of this exemption, and by extending the operation of this exemption indefinitely, exemption, and by requiring county assessors to provide specified information, this bill would impose a state-mandated local program. | |
| 36 | - | ||
| 37 | - | Existing law requires any bill authorizing a new tax expenditure, as defined to include tax credits, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. | |
| 38 | - | ||
| 39 | - | This bill would include findings and reporting requirements in compliance with this requirement. | |
| 34 | + | By expanding the scope of this exemption, and by extending the operation of this exemption indefinitely, this bill would impose a state-mandated local program. | |
| 40 | 35 | ||
| 41 | 36 | 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. | |
| 42 | 37 | ||
| 43 | 38 | This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. | |
| 44 | 39 | ||
| 45 | 40 | Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation. | |
| 46 | 41 | ||
| 47 | 42 | This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill. | |
| 48 | 43 | ||
| 49 | - | Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. | |
| 50 | - | ||
| 51 | - | This bill would make legislative findings to that effect. | |
| 52 | - | ||
| 53 | 44 | This bill would take effect immediately as a tax levy. | |
| 54 | 45 | ||
| 55 | 46 | ## Digest Key | |
| 56 | 47 | ||
| 57 | 48 | ## Bill Text | |
| 58 | 49 | ||
| 59 | - | The people of the State of California do enact as follows:SECTION 1. Section 242 of the Revenue and Taxation Code is amended to read:242. (a) There is exempted from the taxes imposed by this part qualified property used for space flight activities.(b) For purposes of this section:(1) Qualified property means any of the following:(A) Tangible personal property, whether raw materials, work in process or finished goods, that has, or upon manufacture, assembly, or installation has, any of the following:(i) Space flight capacity, including, but not limited to, an orbital space facility, space propulsion system, space vehicle, launch vehicle, satellite, or space station of any kind, and any component thereof, regardless of whether that property is to be ultimately returned to this state.(ii) A role as ground support equipment for space flight launch preparation and operations, including any of the following:(I) Equipment necessary to distribute commodities to the launch site, space propulsion system, space vehicle, or launch vehicle.(II) Housing data and communication support systems.(III) Testing space propulsion systems, space vehicles, or launch vehicles, or any component thereof.(iii) A role in testing space flight engines and components at a test site, including any of the following:(I) Test stands for testing liquid propulsion rocket engines, rocket structural elements, and integrated rocket assemblies, including all propellant and commodity delivery systems.(II) Instrumentation, command, and control systems for operating test stands. (III) Environmental protection, safety, and occupational health equipment.(B) Fuel of a quality that is not adaptable for use in ordinary motor vehicles, but is produced, sold, and used exclusively for space flight.(2) Space flight means any flight designed for suborbital, orbital, or interplanetary travel by a space vehicle, satellite, space facility, or space station of any kind.(c) The exemption established by this section shall not be denied by reason of failure, postponement, or cancellation of a launch of a space vehicle, satellite, space facility, or space station of any kind, or the destruction of any launch vehicle or ground support equipment, or any component of a launch vehicle or ground support equipment.(d) This section shall be operative from the January 1, 2014, lien date | |
| 50 | + | The people of the State of California do enact as follows:SECTION 1. Section 242 of the Revenue and Taxation Code is amended to read:242. (a) There is exempted from the taxes imposed by this part qualified property used for space flight activities.(b) For purposes of this section:(1) Qualified property means any of the following:(A) Tangible personal property, whether raw materials, work in process or finished goods, that has, or upon manufacture, assembly, or installation has, any of the following:(i) Space flight capacity, including, but not limited to, an orbital space facility, space propulsion system, space vehicle, launch vehicle, satellite, or space station of any kind, and any component thereof, regardless of whether that property is to be ultimately returned to this state.(ii) A role as ground support infrastructure equipment for space flight launch preparation and operations, including, but not limited to, including any of the following:(I) Equipment necessary to distribute commodities to the launch site, space propulsion system, space vehicle, or launch vehicle.(II) Housing data and communication support systems.(III) Testing space propulsion systems, space vehicles, or launch vehicles, or any component thereof.(iii) A role in testing space flight engines and components at a test site, including, but not limited to, including any of the following:(I) Test stands for testing liquid propulsion rocket engines, rocket structural elements, and integrated rocket assemblies, including all propellant and commodity delivery systems.(II) Instrumentation, command, and control systems for operating test stands. (III) Environmental protection, safety, and occupational health equipment.(B) Fuel of a quality that is not adaptable for use in ordinary motor vehicles, but is produced, sold, and used exclusively for space flight.(2) Space flight means any flight designed for suborbital, orbital, or interplanetary travel by a space vehicle, satellite, space facility, or space station of any kind.(c) The exemption established by this section shall not be denied by reason of failure, postponement, or cancellation of a launch of a space vehicle, satellite, space facility, or space station of any kind, or the destruction of any launch vehicle or ground support infrastructure, equipment, or any component of a launch vehicle or ground support infrastructure. equipment.(d) This section shall be operative from the January 1, 2014, lien date and for every lien date thereafter.(e) A taxpayer shall provide, upon request of the assessor, evidence that the qualified property exempted from the taxes imposed by this part pursuant to this section has been or will be used as described in subparagraph (A) of paragraph (1) of subdivision (b).(f) The exemption provided by this section from the taxes imposed by this part shall be limited to taxpayers that have a primary business purpose in space flight activities.(g) The amendments made to this section by the act adding this subdivision shall apply commencing with the January 1, 2022, lien date and for every lien date thereafter.SEC. 2. It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.SEC. 3. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.SEC. 4. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 60 | 51 | ||
| 61 | 52 | The people of the State of California do enact as follows: | |
| 62 | 53 | ||
| 63 | 54 | ## The people of the State of California do enact as follows: | |
| 64 | 55 | ||
| 65 | - | SECTION 1. Section 242 of the Revenue and Taxation Code is amended to read:242. (a) There is exempted from the taxes imposed by this part qualified property used for space flight activities.(b) For purposes of this section:(1) Qualified property means any of the following:(A) Tangible personal property, whether raw materials, work in process or finished goods, that has, or upon manufacture, assembly, or installation has, any of the following:(i) Space flight capacity, including, but not limited to, an orbital space facility, space propulsion system, space vehicle, launch vehicle, satellite, or space station of any kind, and any component thereof, regardless of whether that property is to be ultimately returned to this state.(ii) A role as ground support equipment for space flight launch preparation and operations, including any of the following:(I) Equipment necessary to distribute commodities to the launch site, space propulsion system, space vehicle, or launch vehicle.(II) Housing data and communication support systems.(III) Testing space propulsion systems, space vehicles, or launch vehicles, or any component thereof.(iii) A role in testing space flight engines and components at a test site, including any of the following:(I) Test stands for testing liquid propulsion rocket engines, rocket structural elements, and integrated rocket assemblies, including all propellant and commodity delivery systems.(II) Instrumentation, command, and control systems for operating test stands. (III) Environmental protection, safety, and occupational health equipment.(B) Fuel of a quality that is not adaptable for use in ordinary motor vehicles, but is produced, sold, and used exclusively for space flight.(2) Space flight means any flight designed for suborbital, orbital, or interplanetary travel by a space vehicle, satellite, space facility, or space station of any kind.(c) The exemption established by this section shall not be denied by reason of failure, postponement, or cancellation of a launch of a space vehicle, satellite, space facility, or space station of any kind, or the destruction of any launch vehicle or ground support equipment, or any component of a launch vehicle or ground support equipment.(d) This section shall be operative from the January 1, 2014, lien date | |
| 56 | + | SECTION 1. Section 242 of the Revenue and Taxation Code is amended to read:242. (a) There is exempted from the taxes imposed by this part qualified property used for space flight activities.(b) For purposes of this section:(1) Qualified property means any of the following:(A) Tangible personal property, whether raw materials, work in process or finished goods, that has, or upon manufacture, assembly, or installation has, any of the following:(i) Space flight capacity, including, but not limited to, an orbital space facility, space propulsion system, space vehicle, launch vehicle, satellite, or space station of any kind, and any component thereof, regardless of whether that property is to be ultimately returned to this state.(ii) A role as ground support infrastructure equipment for space flight launch preparation and operations, including, but not limited to, including any of the following:(I) Equipment necessary to distribute commodities to the launch site, space propulsion system, space vehicle, or launch vehicle.(II) Housing data and communication support systems.(III) Testing space propulsion systems, space vehicles, or launch vehicles, or any component thereof.(iii) A role in testing space flight engines and components at a test site, including, but not limited to, including any of the following:(I) Test stands for testing liquid propulsion rocket engines, rocket structural elements, and integrated rocket assemblies, including all propellant and commodity delivery systems.(II) Instrumentation, command, and control systems for operating test stands. (III) Environmental protection, safety, and occupational health equipment.(B) Fuel of a quality that is not adaptable for use in ordinary motor vehicles, but is produced, sold, and used exclusively for space flight.(2) Space flight means any flight designed for suborbital, orbital, or interplanetary travel by a space vehicle, satellite, space facility, or space station of any kind.(c) The exemption established by this section shall not be denied by reason of failure, postponement, or cancellation of a launch of a space vehicle, satellite, space facility, or space station of any kind, or the destruction of any launch vehicle or ground support infrastructure, equipment, or any component of a launch vehicle or ground support infrastructure. equipment.(d) This section shall be operative from the January 1, 2014, lien date and for every lien date thereafter.(e) A taxpayer shall provide, upon request of the assessor, evidence that the qualified property exempted from the taxes imposed by this part pursuant to this section has been or will be used as described in subparagraph (A) of paragraph (1) of subdivision (b).(f) The exemption provided by this section from the taxes imposed by this part shall be limited to taxpayers that have a primary business purpose in space flight activities.(g) The amendments made to this section by the act adding this subdivision shall apply commencing with the January 1, 2022, lien date and for every lien date thereafter. | |
| 66 | 57 | ||
| 67 | 58 | SECTION 1. Section 242 of the Revenue and Taxation Code is amended to read: | |
| 68 | 59 | ||
| 69 | 60 | ### SECTION 1. | |
| 70 | 61 | ||
| 71 | - | 242. (a) There is exempted from the taxes imposed by this part qualified property used for space flight activities.(b) For purposes of this section:(1) Qualified property means any of the following:(A) Tangible personal property, whether raw materials, work in process or finished goods, that has, or upon manufacture, assembly, or installation has, any of the following:(i) Space flight capacity, including, but not limited to, an orbital space facility, space propulsion system, space vehicle, launch vehicle, satellite, or space station of any kind, and any component thereof, regardless of whether that property is to be ultimately returned to this state.(ii) A role as ground support equipment for space flight launch preparation and operations, including any of the following:(I) Equipment necessary to distribute commodities to the launch site, space propulsion system, space vehicle, or launch vehicle.(II) Housing data and communication support systems.(III) Testing space propulsion systems, space vehicles, or launch vehicles, or any component thereof.(iii) A role in testing space flight engines and components at a test site, including any of the following:(I) Test stands for testing liquid propulsion rocket engines, rocket structural elements, and integrated rocket assemblies, including all propellant and commodity delivery systems.(II) Instrumentation, command, and control systems for operating test stands. (III) Environmental protection, safety, and occupational health equipment.(B) Fuel of a quality that is not adaptable for use in ordinary motor vehicles, but is produced, sold, and used exclusively for space flight.(2) Space flight means any flight designed for suborbital, orbital, or interplanetary travel by a space vehicle, satellite, space facility, or space station of any kind.(c) The exemption established by this section shall not be denied by reason of failure, postponement, or cancellation of a launch of a space vehicle, satellite, space facility, or space station of any kind, or the destruction of any launch vehicle or ground support equipment, or any component of a launch vehicle or ground support equipment.(d) This section shall be operative from the January 1, 2014, lien date | |
| 62 | + | 242. (a) There is exempted from the taxes imposed by this part qualified property used for space flight activities.(b) For purposes of this section:(1) Qualified property means any of the following:(A) Tangible personal property, whether raw materials, work in process or finished goods, that has, or upon manufacture, assembly, or installation has, any of the following:(i) Space flight capacity, including, but not limited to, an orbital space facility, space propulsion system, space vehicle, launch vehicle, satellite, or space station of any kind, and any component thereof, regardless of whether that property is to be ultimately returned to this state.(ii) A role as ground support infrastructure equipment for space flight launch preparation and operations, including, but not limited to, including any of the following:(I) Equipment necessary to distribute commodities to the launch site, space propulsion system, space vehicle, or launch vehicle.(II) Housing data and communication support systems.(III) Testing space propulsion systems, space vehicles, or launch vehicles, or any component thereof.(iii) A role in testing space flight engines and components at a test site, including, but not limited to, including any of the following:(I) Test stands for testing liquid propulsion rocket engines, rocket structural elements, and integrated rocket assemblies, including all propellant and commodity delivery systems.(II) Instrumentation, command, and control systems for operating test stands. (III) Environmental protection, safety, and occupational health equipment.(B) Fuel of a quality that is not adaptable for use in ordinary motor vehicles, but is produced, sold, and used exclusively for space flight.(2) Space flight means any flight designed for suborbital, orbital, or interplanetary travel by a space vehicle, satellite, space facility, or space station of any kind.(c) The exemption established by this section shall not be denied by reason of failure, postponement, or cancellation of a launch of a space vehicle, satellite, space facility, or space station of any kind, or the destruction of any launch vehicle or ground support infrastructure, equipment, or any component of a launch vehicle or ground support infrastructure. equipment.(d) This section shall be operative from the January 1, 2014, lien date and for every lien date thereafter.(e) A taxpayer shall provide, upon request of the assessor, evidence that the qualified property exempted from the taxes imposed by this part pursuant to this section has been or will be used as described in subparagraph (A) of paragraph (1) of subdivision (b).(f) The exemption provided by this section from the taxes imposed by this part shall be limited to taxpayers that have a primary business purpose in space flight activities.(g) The amendments made to this section by the act adding this subdivision shall apply commencing with the January 1, 2022, lien date and for every lien date thereafter. | |
| 72 | 63 | ||
| 73 | - | 242. (a) There is exempted from the taxes imposed by this part qualified property used for space flight activities.(b) For purposes of this section:(1) Qualified property means any of the following:(A) Tangible personal property, whether raw materials, work in process or finished goods, that has, or upon manufacture, assembly, or installation has, any of the following:(i) Space flight capacity, including, but not limited to, an orbital space facility, space propulsion system, space vehicle, launch vehicle, satellite, or space station of any kind, and any component thereof, regardless of whether that property is to be ultimately returned to this state.(ii) A role as ground support equipment for space flight launch preparation and operations, including any of the following:(I) Equipment necessary to distribute commodities to the launch site, space propulsion system, space vehicle, or launch vehicle.(II) Housing data and communication support systems.(III) Testing space propulsion systems, space vehicles, or launch vehicles, or any component thereof.(iii) A role in testing space flight engines and components at a test site, including any of the following:(I) Test stands for testing liquid propulsion rocket engines, rocket structural elements, and integrated rocket assemblies, including all propellant and commodity delivery systems.(II) Instrumentation, command, and control systems for operating test stands. (III) Environmental protection, safety, and occupational health equipment.(B) Fuel of a quality that is not adaptable for use in ordinary motor vehicles, but is produced, sold, and used exclusively for space flight.(2) Space flight means any flight designed for suborbital, orbital, or interplanetary travel by a space vehicle, satellite, space facility, or space station of any kind.(c) The exemption established by this section shall not be denied by reason of failure, postponement, or cancellation of a launch of a space vehicle, satellite, space facility, or space station of any kind, or the destruction of any launch vehicle or ground support equipment, or any component of a launch vehicle or ground support equipment.(d) This section shall be operative from the January 1, 2014, lien date | |
| 64 | + | 242. (a) There is exempted from the taxes imposed by this part qualified property used for space flight activities.(b) For purposes of this section:(1) Qualified property means any of the following:(A) Tangible personal property, whether raw materials, work in process or finished goods, that has, or upon manufacture, assembly, or installation has, any of the following:(i) Space flight capacity, including, but not limited to, an orbital space facility, space propulsion system, space vehicle, launch vehicle, satellite, or space station of any kind, and any component thereof, regardless of whether that property is to be ultimately returned to this state.(ii) A role as ground support infrastructure equipment for space flight launch preparation and operations, including, but not limited to, including any of the following:(I) Equipment necessary to distribute commodities to the launch site, space propulsion system, space vehicle, or launch vehicle.(II) Housing data and communication support systems.(III) Testing space propulsion systems, space vehicles, or launch vehicles, or any component thereof.(iii) A role in testing space flight engines and components at a test site, including, but not limited to, including any of the following:(I) Test stands for testing liquid propulsion rocket engines, rocket structural elements, and integrated rocket assemblies, including all propellant and commodity delivery systems.(II) Instrumentation, command, and control systems for operating test stands. (III) Environmental protection, safety, and occupational health equipment.(B) Fuel of a quality that is not adaptable for use in ordinary motor vehicles, but is produced, sold, and used exclusively for space flight.(2) Space flight means any flight designed for suborbital, orbital, or interplanetary travel by a space vehicle, satellite, space facility, or space station of any kind.(c) The exemption established by this section shall not be denied by reason of failure, postponement, or cancellation of a launch of a space vehicle, satellite, space facility, or space station of any kind, or the destruction of any launch vehicle or ground support infrastructure, equipment, or any component of a launch vehicle or ground support infrastructure. equipment.(d) This section shall be operative from the January 1, 2014, lien date and for every lien date thereafter.(e) A taxpayer shall provide, upon request of the assessor, evidence that the qualified property exempted from the taxes imposed by this part pursuant to this section has been or will be used as described in subparagraph (A) of paragraph (1) of subdivision (b).(f) The exemption provided by this section from the taxes imposed by this part shall be limited to taxpayers that have a primary business purpose in space flight activities.(g) The amendments made to this section by the act adding this subdivision shall apply commencing with the January 1, 2022, lien date and for every lien date thereafter. | |
| 74 | 65 | ||
| 75 | - | 242. (a) There is exempted from the taxes imposed by this part qualified property used for space flight activities.(b) For purposes of this section:(1) Qualified property means any of the following:(A) Tangible personal property, whether raw materials, work in process or finished goods, that has, or upon manufacture, assembly, or installation has, any of the following:(i) Space flight capacity, including, but not limited to, an orbital space facility, space propulsion system, space vehicle, launch vehicle, satellite, or space station of any kind, and any component thereof, regardless of whether that property is to be ultimately returned to this state.(ii) A role as ground support equipment for space flight launch preparation and operations, including any of the following:(I) Equipment necessary to distribute commodities to the launch site, space propulsion system, space vehicle, or launch vehicle.(II) Housing data and communication support systems.(III) Testing space propulsion systems, space vehicles, or launch vehicles, or any component thereof.(iii) A role in testing space flight engines and components at a test site, including any of the following:(I) Test stands for testing liquid propulsion rocket engines, rocket structural elements, and integrated rocket assemblies, including all propellant and commodity delivery systems.(II) Instrumentation, command, and control systems for operating test stands. (III) Environmental protection, safety, and occupational health equipment.(B) Fuel of a quality that is not adaptable for use in ordinary motor vehicles, but is produced, sold, and used exclusively for space flight.(2) Space flight means any flight designed for suborbital, orbital, or interplanetary travel by a space vehicle, satellite, space facility, or space station of any kind.(c) The exemption established by this section shall not be denied by reason of failure, postponement, or cancellation of a launch of a space vehicle, satellite, space facility, or space station of any kind, or the destruction of any launch vehicle or ground support equipment, or any component of a launch vehicle or ground support equipment.(d) This section shall be operative from the January 1, 2014, lien date | |
| 66 | + | 242. (a) There is exempted from the taxes imposed by this part qualified property used for space flight activities.(b) For purposes of this section:(1) Qualified property means any of the following:(A) Tangible personal property, whether raw materials, work in process or finished goods, that has, or upon manufacture, assembly, or installation has, any of the following:(i) Space flight capacity, including, but not limited to, an orbital space facility, space propulsion system, space vehicle, launch vehicle, satellite, or space station of any kind, and any component thereof, regardless of whether that property is to be ultimately returned to this state.(ii) A role as ground support infrastructure equipment for space flight launch preparation and operations, including, but not limited to, including any of the following:(I) Equipment necessary to distribute commodities to the launch site, space propulsion system, space vehicle, or launch vehicle.(II) Housing data and communication support systems.(III) Testing space propulsion systems, space vehicles, or launch vehicles, or any component thereof.(iii) A role in testing space flight engines and components at a test site, including, but not limited to, including any of the following:(I) Test stands for testing liquid propulsion rocket engines, rocket structural elements, and integrated rocket assemblies, including all propellant and commodity delivery systems.(II) Instrumentation, command, and control systems for operating test stands. (III) Environmental protection, safety, and occupational health equipment.(B) Fuel of a quality that is not adaptable for use in ordinary motor vehicles, but is produced, sold, and used exclusively for space flight.(2) Space flight means any flight designed for suborbital, orbital, or interplanetary travel by a space vehicle, satellite, space facility, or space station of any kind.(c) The exemption established by this section shall not be denied by reason of failure, postponement, or cancellation of a launch of a space vehicle, satellite, space facility, or space station of any kind, or the destruction of any launch vehicle or ground support infrastructure, equipment, or any component of a launch vehicle or ground support infrastructure. equipment.(d) This section shall be operative from the January 1, 2014, lien date and for every lien date thereafter.(e) A taxpayer shall provide, upon request of the assessor, evidence that the qualified property exempted from the taxes imposed by this part pursuant to this section has been or will be used as described in subparagraph (A) of paragraph (1) of subdivision (b).(f) The exemption provided by this section from the taxes imposed by this part shall be limited to taxpayers that have a primary business purpose in space flight activities.(g) The amendments made to this section by the act adding this subdivision shall apply commencing with the January 1, 2022, lien date and for every lien date thereafter. | |
| 76 | 67 | ||
| 77 | 68 | ||
| 78 | 69 | ||
| 79 | 70 | 242. (a) There is exempted from the taxes imposed by this part qualified property used for space flight activities. | |
| 80 | 71 | ||
| 81 | 72 | (b) For purposes of this section: | |
| 82 | 73 | ||
| 83 | 74 | (1) Qualified property means any of the following: | |
| 84 | 75 | ||
| 85 | 76 | (A) Tangible personal property, whether raw materials, work in process or finished goods, that has, or upon manufacture, assembly, or installation has, any of the following: | |
| 86 | 77 | ||
| 87 | 78 | (i) Space flight capacity, including, but not limited to, an orbital space facility, space propulsion system, space vehicle, launch vehicle, satellite, or space station of any kind, and any component thereof, regardless of whether that property is to be ultimately returned to this state. | |
| 88 | 79 | ||
| 89 | - | (ii) A role as ground support equipment for space flight launch preparation and operations, including any of the following: | |
| 80 | + | (ii) A role as ground support infrastructure equipment for space flight launch preparation and operations, including, but not limited to, including any of the following: | |
| 90 | 81 | ||
| 91 | 82 | (I) Equipment necessary to distribute commodities to the launch site, space propulsion system, space vehicle, or launch vehicle. | |
| 92 | 83 | ||
| 93 | 84 | (II) Housing data and communication support systems. | |
| 94 | 85 | ||
| 95 | 86 | (III) Testing space propulsion systems, space vehicles, or launch vehicles, or any component thereof. | |
| 96 | 87 | ||
| 97 | - | (iii) A role in testing space flight engines and components at a test site, including any of the following: | |
| 88 | + | (iii) A role in testing space flight engines and components at a test site, including, but not limited to, including any of the following: | |
| 98 | 89 | ||
| 99 | 90 | (I) Test stands for testing liquid propulsion rocket engines, rocket structural elements, and integrated rocket assemblies, including all propellant and commodity delivery systems. | |
| 100 | 91 | ||
| 101 | 92 | (II) Instrumentation, command, and control systems for operating test stands. | |
| 102 | 93 | ||
| 103 | 94 | (III) Environmental protection, safety, and occupational health equipment. | |
| 104 | 95 | ||
| 105 | 96 | (B) Fuel of a quality that is not adaptable for use in ordinary motor vehicles, but is produced, sold, and used exclusively for space flight. | |
| 106 | 97 | ||
| 107 | 98 | (2) Space flight means any flight designed for suborbital, orbital, or interplanetary travel by a space vehicle, satellite, space facility, or space station of any kind. | |
| 108 | 99 | ||
| 109 | - | (c) The exemption established by this section shall not be denied by reason of failure, postponement, or cancellation of a launch of a space vehicle, satellite, space facility, or space station of any kind, or the destruction of any launch vehicle or ground support equipment, or any component of a launch vehicle or ground support equipment. | |
| 100 | + | (c) The exemption established by this section shall not be denied by reason of failure, postponement, or cancellation of a launch of a space vehicle, satellite, space facility, or space station of any kind, or the destruction of any launch vehicle or ground support infrastructure, equipment, or any component of a launch vehicle or ground support infrastructure. equipment. | |
| 110 | 101 | ||
| 111 | - | (d) This section shall be operative from the January 1, 2014, lien date | |
| 102 | + | (d) This section shall be operative from the January 1, 2014, lien date and for every lien date thereafter. | |
| 112 | 103 | ||
| 113 | 104 | (e) A taxpayer shall provide, upon request of the assessor, evidence that the qualified property exempted from the taxes imposed by this part pursuant to this section has been or will be used as described in subparagraph (A) of paragraph (1) of subdivision (b). | |
| 114 | 105 | ||
| 115 | 106 | (f) The exemption provided by this section from the taxes imposed by this part shall be limited to taxpayers that have a primary business purpose in space flight activities. | |
| 116 | 107 | ||
| 117 | - | (g) The amendments made to this section by the act adding this subdivision shall apply commencing with the January 1, 2022, lien date and for every lien date thereafter. | |
| 108 | + | (g) The amendments made to this section by the act adding this subdivision shall apply commencing with the January 1, 2022, lien date and for every lien date thereafter. | |
| 118 | 109 | ||
| 119 | - | ||
| 110 | + | SEC. 2. It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code. | |
| 120 | 111 | ||
| 112 | + | SEC. 2. It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code. | |
| 121 | 113 | ||
| 122 | - | ||
| 123 | - | It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code. | |
| 124 | - | ||
| 125 | - | ||
| 126 | - | ||
| 127 | - | SEC. 2. For purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Section 242 of the Revenue and Taxation Code, as amended by this act, the Legislature finds and declares all of the following:(a) The specific goal, purpose, and objective that the credit will achieve include increasing employment and investment in California in the space flight, launch, engine, and vehicle testing industry in California relative to other states with comparable infrastructure and capacity to support this industry.(b) Detailed performance indicators for the Legislature to use in determining whether the exemption meets the goals, purposes, and objectives described in subdivision (a) are:(1) The change in the number of employees in the space flight industry in California resulting from the exemption.(2) The change in the compensation amounts of employees in the space flight industry in California resulting from the exemption.(3) The change in the amount of investment made in space flight, launch, engine, and vehicle testing facilities in California resulting from the exemption.(c) (1) By January 1, 2033, the Legislative Analysts Office shall provide to the Assembly Committee on Revenue and Taxation, the Senate Committee on Governance and Finance, and the public a report that summarizes its findings regarding the performance indicators described in subdivision (b). In researching the report, the Legislative Analysts Office may request and receive information from county assessors, the State Board of Equalization, taxpayers benefitting from the exemption, trade associations, or other individuals or entities.(2) County assessors and the State Board of Equalization shall provide information specified by the Legislative Analysts Office as needed to research the report required by this subdivision.(3) Information received by the Legislative Analysts Office shall be subject to the appropriate confidentiality requirements of the State Board of Equalization or the county assessor, or shall be confidential at the request of the taxpayer. | |
| 128 | - | ||
| 129 | - | SEC. 2. For purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Section 242 of the Revenue and Taxation Code, as amended by this act, the Legislature finds and declares all of the following:(a) The specific goal, purpose, and objective that the credit will achieve include increasing employment and investment in California in the space flight, launch, engine, and vehicle testing industry in California relative to other states with comparable infrastructure and capacity to support this industry.(b) Detailed performance indicators for the Legislature to use in determining whether the exemption meets the goals, purposes, and objectives described in subdivision (a) are:(1) The change in the number of employees in the space flight industry in California resulting from the exemption.(2) The change in the compensation amounts of employees in the space flight industry in California resulting from the exemption.(3) The change in the amount of investment made in space flight, launch, engine, and vehicle testing facilities in California resulting from the exemption.(c) (1) By January 1, 2033, the Legislative Analysts Office shall provide to the Assembly Committee on Revenue and Taxation, the Senate Committee on Governance and Finance, and the public a report that summarizes its findings regarding the performance indicators described in subdivision (b). In researching the report, the Legislative Analysts Office may request and receive information from county assessors, the State Board of Equalization, taxpayers benefitting from the exemption, trade associations, or other individuals or entities.(2) County assessors and the State Board of Equalization shall provide information specified by the Legislative Analysts Office as needed to research the report required by this subdivision.(3) Information received by the Legislative Analysts Office shall be subject to the appropriate confidentiality requirements of the State Board of Equalization or the county assessor, or shall be confidential at the request of the taxpayer. | |
| 130 | - | ||
| 131 | - | SEC. 2. For purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Section 242 of the Revenue and Taxation Code, as amended by this act, the Legislature finds and declares all of the following: | |
| 114 | + | SEC. 2. It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code. | |
| 132 | 115 | ||
| 133 | 116 | ### SEC. 2. | |
| 134 | - | ||
| 135 | - | (a) The specific goal, purpose, and objective that the credit will achieve include increasing employment and investment in California in the space flight, launch, engine, and vehicle testing industry in California relative to other states with comparable infrastructure and capacity to support this industry. | |
| 136 | - | ||
| 137 | - | (b) Detailed performance indicators for the Legislature to use in determining whether the exemption meets the goals, purposes, and objectives described in subdivision (a) are: | |
| 138 | - | ||
| 139 | - | (1) The change in the number of employees in the space flight industry in California resulting from the exemption. | |
| 140 | - | ||
| 141 | - | (2) The change in the compensation amounts of employees in the space flight industry in California resulting from the exemption. | |
| 142 | - | ||
| 143 | - | (3) The change in the amount of investment made in space flight, launch, engine, and vehicle testing facilities in California resulting from the exemption. | |
| 144 | - | ||
| 145 | - | (c) (1) By January 1, 2033, the Legislative Analysts Office shall provide to the Assembly Committee on Revenue and Taxation, the Senate Committee on Governance and Finance, and the public a report that summarizes its findings regarding the performance indicators described in subdivision (b). In researching the report, the Legislative Analysts Office may request and receive information from county assessors, the State Board of Equalization, taxpayers benefitting from the exemption, trade associations, or other individuals or entities. | |
| 146 | - | ||
| 147 | - | (2) County assessors and the State Board of Equalization shall provide information specified by the Legislative Analysts Office as needed to research the report required by this subdivision. | |
| 148 | - | ||
| 149 | - | (3) Information received by the Legislative Analysts Office shall be subject to the appropriate confidentiality requirements of the State Board of Equalization or the county assessor, or shall be confidential at the request of the taxpayer. | |
| 150 | 117 | ||
| 151 | 118 | SEC. 3. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. | |
| 152 | 119 | ||
| 153 | 120 | SEC. 3. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. | |
| 154 | 121 | ||
| 155 | 122 | SEC. 3. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. | |
| 156 | 123 | ||
| 157 | 124 | ### SEC. 3. | |
| 158 | 125 | ||
| 159 | 126 | SEC. 4. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act. | |
| 160 | 127 | ||
| 161 | 128 | SEC. 4. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act. | |
| 162 | 129 | ||
| 163 | 130 | SEC. 4. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act. | |
| 164 | 131 | ||
| 165 | 132 | ### SEC. 4. | |
| 166 | 133 | ||
| 167 | - | SEC. 5. | |
| 134 | + | SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 168 | 135 | ||
| 169 | - | SEC. 5. | |
| 136 | + | SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 170 | 137 | ||
| 171 | - | SEC. 5. | |
| 138 | + | SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 172 | 139 | ||
| 173 | 140 | ### SEC. 5. | |
| 174 | - | ||
| 175 | - | The section balances the publics right of access with taxpayers right to privacy. | |
| 176 | - | ||
| 177 | - | SEC. 5.SEC. 6. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 178 | - | ||
| 179 | - | SEC. 5.SEC. 6. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 180 | - | ||
| 181 | - | SEC. 5.SEC. 6. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 182 | - | ||
| 183 | - | ### SEC. 5.SEC. 6. |