2022 - Senate Bill 542 (Limon, Monique), Sales and Use Taxes: Exemption: Medium- or Heavy-Duty Zero-Emission Trucks (Dead)
Would have provided an exemption from the State General Fund portion of the Sales and Use Tax (3.9375 percent) for qualified motor vehicles, which are defined as meeting the following requirements: (1) a vehicle eligible for an incentive under CARB’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP); (2) a zero-emission vehicle over 8,500 Gross Vehicle Weight Rating (GVWR); (3) the purchase of the vehicle was not made using a voucher through HVIP; and (4) is a new vehicle. This bill also would have required CARB to maintain an updated website listing vehicle eligibility. This bill would have required the California Department of Tax and Fee Administration to provide a report to the Assembly Committee on Revenue and Taxation and the Senate Committee on Governance and Finance on the use of the exemption. This bill would also have specified that for sales made on or after January 1, 2025, the exemption does not apply to transactions where the purchaser has received an HVIP voucher. Finally, this bill provisions would have sunset and been repealed on January 1, 2027. Held on suspense in the Assembly Appropriations Committee.