CA AB1941

Imposes a 1.25% tax on qualified lessees for leasing or renting qualified heavy equipment (construction, earthmoving, industrial equipment) in California, effective January 1, 2013

Tax revenues collected by the State Board of Equalization are deposited into the newly established Heavy Equipment Revenue Fund and used to reimburse local entities for lost property tax revenues

The heavy equipment tax replaces personal property tax on qualified heavy equipment starting in fiscal year 2013-14

Requires qualified lessors to collect and remit the tax quarterly; administration follows the Fee Collection Procedures Law

Requires a 2/3 vote of the Legislature to pass; state does not reimburse local agencies for property tax revenue losses resulting from this bill