AB 2622: Sales and use taxes: exemptions: California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project: transit buses.

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, including, until January 1, 2024, an exemption from those taxes with respect to the sale in this state of, and the storage, use, or other consumption in this state of, specified zero-emission technology transit buses sold to specified public agencies that are eligible for specified incentives from the State Air Resources Board.

This bill would extend the exemption for specified zero-emission technology transit buses until January 1, 2026.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. Existing law provides this additional information for the above-described exemption from sales and use tax laws.

This bill would update these information requirements as they apply to the sales and use tax exemption, and would require the Legislative Analysts Office to submit a report to the Legislature on the effectiveness of the tax exemption by May 1, 2024.

This bill would take effect immediately as a tax levy.