SB 79: Sales and use taxes: exemption: used electric vehicles.

Existing state sales and use tax laws impose a tax on retailers measured by the 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. The Sales and Use Tax Law provides various exemptions from those taxes.

This bill, on and after July 1, 2018, and before January 1, 2025, would exempt from those taxes 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 purchased by a qualified buyer, as defined. The bill would require the State Air Resources Board to undertake a cost-benefit analysis of this tax exemption and the greenhouse gas emission reduction from the vehicles traded in and submit a report to the Legislature.

The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes cities and counties 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. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws.

This bill would specify that this exemption shall not apply to local sales and use taxes or transactions and use taxes.

This bill would take effect immediately as a tax levy.