Today's Law As Amended


PDF |Add To My Favorites |Track Bill | print page

SB-542 Sales and use taxes: exemption: medium- or heavy-duty zero-emission trucks.(2021-2022)



As Amends the Law Today


SECTION 1.

 Section 6377.2 is added to the Revenue and Taxation Code, to read:

6377.2.
 (a) There are exempted from the taxes imposed by this part the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, a qualified motor vehicle.
(b) For purposes of this section, “qualified motor vehicle” means a vehicle that is both of the following:
(1) A truck model that is eligible for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project funded by the Air Quality Improvement Program and the Greenhouse Gas Reduction Fund under the State Air Resources Board.
(2) A truck with a gross vehicle weight rating, as that term is defined in Section 350 of the Vehicle Code, of more than eight thousand five hundred (8,500) pounds that is a zero-emission vehicle as that term is defined in subdivision (d) of Section 44258 of the Health and Safety Code.
(c) For sales or uses made on or after January 1, 2025, the exemption provided under subdivision (a) shall not apply if the purchaser received a voucher through the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project.
(d) (1) Notwithstanding any provision of the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by subdivision (a) does not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws.
(2) Notwithstanding subdivision (a), the exemption established by this section shall not apply with respect to any tax levied pursuant to Section 6051.2 or 6201.2, pursuant to Section 35 of Article XIII of the California Constitution, or any tax levied pursuant to Section 6051 or 6201 that is deposited in the State Treasury to the credit of the Local Revenue Fund 2011 pursuant to Section 6051.15 or 6201.15.
(e) This section shall become inoperative on January 1, 2027, and as of that date is repealed.
SEC. 2.
 (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:
(1) The goal, purpose, or objective of the tax expenditure authorized by Section 6377.2 of the Revenue and Taxation Code, hereafter “tax exemption,” is to meet the ambitious goals set by Governor Newsom in Executive Order N-79-20 to transition all medium- and heavy-duty trucks in California to zero-emission vehicles in the next 15 to 25 years.
(2) The performance indicator for the Legislature to use when measuring whether the tax exemption meets the goal, purpose, or objective specified in paragraph (1) is the number of sales made that qualified for the tax exemption.
(b) On or before January 1, 2023, the California Department of Tax and Fee Administration shall provide a report to the Assembly Committee on Revenue and Taxation and the Senate Committee on Governance and Finance on the use of the tax exemption. The report shall be provided in compliance with Section 9795 of the Government Code.
SEC. 3.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.