2024 – Assembly Bill 2061 (Wilson, Lori), Sales and Use Tax: Exemptions: Zero-emission Public Transportation Ferries (Vetoed)
Bill Information
Contact
Summary
Would have partially exempted from sales and use taxes (3.9375%) the sale or purchase of specified zero-emission transportation ferries to a public agency, from January 1, 2025, to January 1, 2030. This bill would have required the Legislative Analyst's Office to review the effectiveness of the tax exemption, and to submit a report by May 1, 2028, to the Legislature.
Governor’s Veto Message
To the Members of the California State Assembly:
I am returning Assembly Bill 2061 without my signature.
This bill would enact a state sales and use tax exemption from July 1, 2025, until January 1, 2030, for a zero-emission public transportation ferry sold to a local public agency that provides transit services to the public.
I share the author's commitment to accelerating the adoption of zero-emission technologies within the public transit system by reducing upfront costs. The state has made unprecedented investments to support the clean transportation transition, dedicating billions of dollars to deliver cleaner mobility options for all Californians. Recent achievements include the electrification of Coltrain, the launch of the nation's first hydrogen hub, and the mobilization of a $1 .9 billion investment plan to create the country's most extensive zero-emission charging network. This bill, while laudable, should be considered in the context of the annual budget process given the general fund implications of a tax exemption.
In partnership with the Legislature this year, my Administration has enacted a balanced budget that avoids deep program cuts to vital services and protected investments in education, health care, climate, public safety, housing, and social service programs that millions of Californians rely on. It is important to remain disciplined when considering bills with significant fiscal implications that are not included in the budget, such as this measure. For these reasons, I cannot sign this bill.
Sincerely,
Gavin Newsom