Sales and use taxes: exemption: lease of solar electric generation systems: Greenhouse Gas Reduction Fund: transfer.
The enactment of AB 3360 will impact local taxation laws as it specifies that the exemption does not apply to local sales and use taxes or transactions and use taxes. This might lead to some concerns among local governments regarding potential revenue loss, as they will not receive reimbursement for the taxes that may be short-changed due to this exemption. The bill aims to support the transition to renewable energy, as outlined in the goals of California's environmental policy and economic strategy.
Assembly Bill 3360, introduced by Assembly Member Cunningham, aims to amend Sections 6006, 6010, and 6377.1 of the Revenue and Taxation Code in California. This bill introduces a partial exemption from the sales and use taxes associated with leases of solar electric generation systems. The goal of this legislation is to promote the use of solar energy by making it financially more accessible to residents, and it is effective from January 1, 2021, until June 30, 2030. By reducing the tax burden on leasing solar equipment, the bill encourages individuals to adopt renewable energy sources.
The general sentiment surrounding AB 3360 appears favorable among proponents of renewable energy, as it represents a progressive step towards enhancing the viability of solar solutions for California households. Supporters emphasize that the bill aligns with broader environmental goals, such as reducing greenhouse gas emissions. Opponents, including certain local government representatives, express concern over the lack of reimbursement for lost tax revenues and fear that this could undermine local budgets.
Notable points of contention include the state's commitment not to reimburse local agencies for the sales and use tax revenues lost under this act, which could create financial pressures for those jurisdictions. Additionally, there are discussions regarding the effectiveness of the tax incentive as a driver for increased solar adoption among residents, leading to further scrutiny on the long-term benefits versus the immediate financial implications for local governments.