SB 542

  • California Senate Bill
  • 2021-2022 Regular Session
  • Introduced in Senate Feb 18, 2021
  • Passed Senate Jan 18, 2022
  • Assembly
  • Governor

Sales and use taxes: exemption: medium- or heavy-duty zero-emission trucks.

Abstract

Existing sales and use tax laws impose taxes on retailers measured by gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, measured by sales price. The Sales and Use Tax Law provides various exemptions from those taxes. Existing law establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The State Air Resources Board, in this capacity, administers the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project under which the agency issues a limited number of vouchers to incentivize the purchase and use of zero-emission commercial vehicles. This bill would provide an exemption from sales and use taxes with respect to the sale in this state of, and the storage, use, or other consumption in this state of, a qualified motor vehicle. The bill would define "qualified motor vehicle" as, among other things, a new zero-emission truck that is eligible for a project voucher. The bill would, however, disallow the exemption from a sales or use tax where the vehicle purchase was made using a voucher issued by the State Air Resources Board pursuant to the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project. The bill would provide that the tax exemption does not apply to specified state sales and use taxes from which the proceeds are deposited into the Local Revenue Fund, the Local Revenue Fund 2011, or the Local Public Safety Fund. The bill would provide that the exemption would apply to otherwise eligible sales and uses of a vehicle where the internet website of the State Air Resources Board indicates a vehicle is eligible for the voucher program at the time the purchase is made, notwithstanding a contrary determination made by the State Air Resources Board. The bill would require the State Air Resources Board to indicate the date on which it updates its internet website to reflect changes in the eligibility of a vehicle under the voucher project. The bill would provide that the exemption is to become operative on April 1, 2023. The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws. This bill would specify that this exemption does not apply to local sales and use taxes or transactions and use taxes. The bill would provide that the above-described exemption shall become inoperative on April 1, 2028, and as of that date is repealed. Existing law requires a bill that would authorize a new tax expenditure under the Sales and Use Tax Law to identify specific goals, purposes, and objectives that the tax expenditure will achieve, and detailed performance indicators and data collection requirements for determining whether the tax expenditure achieves these goals, purposes, and objectives. This bill would make findings specifying the goal, purpose, and objective of the sales and use tax exemption provided by this bill and the performance indicator to be used, and would require, on or before January 1, 2023, 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 tax exemption. This bill would take effect immediately as a tax levy.

Bill Sponsors (4)

Votes


Actions


Jun 30, 2022

Assembly

From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 1.) (June 30). Re-referred to Com. on APPR.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on APPR.

Jun 22, 2022

Assembly

From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.

  • Amendment-Passage
  • Committee-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on REV. & TAX.

Jun 06, 2022

Assembly

June 6 hearing: Heard for testimony only.

May 05, 2022

Assembly

Referred to Com. on REV. & TAX.

  • Referral-Committee
Com. on REV. & TAX.

Jan 18, 2022

Assembly

In Assembly. Read first time. Held at Desk.

Senate

Read third time. Passed. (Ayes 33. Noes 0. Page 2775.) Ordered to the Assembly.

Jan 10, 2022

Senate

Read second time. Ordered to third reading.

Jan 06, 2022

Senate

Ordered to second reading.

Senate

From inactive file on motion of Senator Limón.

Jun 01, 2021

Senate

Ordered to inactive file on request of Senator Limón.

May 25, 2021

Senate

Read second time and amended. Ordered to third reading.

May 24, 2021

Senate

From committee: Do pass as amended. (Ayes 7. Noes 0. Page 1195.) (May 20).

May 18, 2021

Senate

Set for hearing May 20.

May 17, 2021

Senate

May 17 hearing: Placed on APPR suspense file.

May 12, 2021

Senate

Set for hearing May 17.

May 10, 2021

Senate

From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 1. Page 1045.) (May 6). Re-referred to Com. on APPR.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on APPR.

May 03, 2021

Senate

From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F.

  • Amendment-Passage
  • Committee-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on GOV. & F.

Apr 28, 2021

Senate

Set for hearing May 6.

Apr 20, 2021

Senate

Read second time and amended. Re-referred to Com. on GOV. & F.

  • Amendment-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on GOV. & F.

Apr 19, 2021

Senate

From committee: Do pass as amended and re-refer to Com. on GOV. & F. (Ayes 14. Noes 0. Page 780.) (April 13).

Mar 25, 2021

Senate

From committee with author's amendments. Read second time and amended. Re-referred to Com. on TRANS.

  • Amendment-Passage
  • Committee-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on TRANS.

Mar 10, 2021

Senate

Set for hearing April 13.

Mar 03, 2021

Senate

Referred to Coms. on TRANS. and GOV. & F.

  • Referral-Committee
Coms. on TRANS. and GOV. & F.

Feb 22, 2021

Senate

(Ayes 32. Noes 4.)

Senate

Joint Rule 55 suspended. (Ayes 32. Noes 4. Page 272.)

Senate

Art. IV. Sec. 8(a) of the Constitution dispensed with.

Feb 19, 2021

Senate

From printer. May be acted upon on or after March 21.

Feb 18, 2021

Senate

Introduced. Read first time. To Com. on RLS. for assignment. To print.

Bill Text

Bill Text Versions Format
SB542 HTML
02/18/21 - Introduced PDF
03/25/21 - Amended Senate PDF
04/20/21 - Amended Senate PDF
05/03/21 - Amended Senate PDF
05/25/21 - Amended Senate PDF
06/22/22 - Amended Assembly PDF

Related Documents

Document Format
04/09/21- Senate Transportation PDF
05/03/21- Senate Governance and Finance PDF
05/14/21- Senate Appropriations PDF
05/20/21- Senate Appropriations PDF
05/25/21- Sen. Floor Analyses PDF
01/11/22- Sen. Floor Analyses PDF
06/03/22- Assembly Revenue and Taxation PDF
06/29/22- Assembly Revenue and Taxation PDF

Sources

Data on Open States is updated periodically throughout the day from the official website of the California State Legislature.

If you notice any inconsistencies with these official sources, feel free to file an issue.