15570.32. (a) The department, in consultation with the Department of Finance, shall prepare a study that analyzes the implementation of a gross receipts tax on the extraction of lithium, in accordance with subdivision (c), to be considered by the Legislature for future enactment as legislation.
(b) The Natural Resources Agency, the Department of Conservation, and the State Energy Resources Conservation and Development Commission shall share relevant market information and data with the department to the extent it is needed to complete the study.
(c) On or before December 31, 2023, the study, including estimated fiscal costs of administering the program, shall be submitted to the Assembly Committee on Budget and the Senate Committee on Budget and Fiscal Review.
(d) The study of replacing a volume-based tax on the extraction of lithium with an equivalent tax based on gross receipts shall include, but not be limited to, all of the following:
(1) The administrative feasibility and considerations for the department of converting a volume-based tax on the extraction of lithium to an equivalent tax based on gross receipts.
(2) The revenue stability of a tax based on gross receipts in comparison to a volume-based tax.
(3) Potential impacts on the tax burdens of in-state lithium producers.
(4) An analysis of the reliability of gross receipts data in terms of providing a meaningful measure of the value of lithium production within a particular time period, including, but not limited to, the characteristics and structure of lithium-extracting firms, types and frequency of sales by producers, price-setting mechanisms, and market volatility.
(5) Considerations on how to define gross receipts to capture the value of in-state production of lithium.
(6) An evaluation of alternatives to a volume-based tax structure that may provide protections to lithium producers if the price of lithium declines.
(e) (1) The study to be submitted pursuant to this section shall be submitted in compliance with Section 9795.
(2) Pursuant to Section 10231.5, this section is repealed on January 1, 2024.
(Added by Stats. 2022, Ch. 63, Sec. 2. (SB 125) Effective June 30, 2022. Repealed as of January 1, 2024, by its own provisions.)