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| 1 | + | Amended IN Senate May 25, 2021 Amended IN Senate May 03, 2021 Amended IN Senate April 20, 2021 Amended IN Senate March 25, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 542Introduced by Senator Limn(Coauthors: Senators Cortese, Dodd, and Newman)February 18, 2021 An act to amend Section 10752 of, and to add and repeal Section 6377.2 of, of the Revenue and Taxation Code, relating to zero-emission vehicles, taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTSB 542, as amended, Limn. Vehicle license fees for zero-emission vehicles: sales Sales and use taxes on taxes: exemption: medium- or heavy-duty zero-emission trucks.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.This bill would provide 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, a qualified motor vehicle. The bill would define qualified motor vehicle as a specified zero-emission truck. The bill would disallow the exemption for sales or uses made on or after January 1, 2025, if the purchaser also received other specified benefits. The bill would provide that this 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 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 January 1, 2027, and as of that date is repealed.Existing law, the Vehicle License Fee Law, establishes, in lieu of any ad valorem property tax upon vehicles, an annual license fee for any vehicle subject to registration in this state at a specified percentage of the market value of that vehicle. Existing law requires the annual amount of the license fee for any commercial vehicle to be a sum equal to 0.65 percent of the market value of the vehicle as determined by the California Department of Motor Vehicles.This bill would instead require, for license fees due prior to January 1, 2027, the annual amount of the license fee for a new on-road medium- or heavy-duty zero-emission truck to be a sum equal to 0.65 percent of the market value of an equivalent new medium- or heavy-duty diesel or gasoline truck, as determined by the State Air Resources Board.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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 6377.2 is added to the Revenue and Taxation Code, to read:6377.2. (a) There are exempted from the taxes imposed by this part 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.(b) For purposes of this section, qualified motor vehicle means a vehicle that is both of the following:(1) A truck model that is eligible for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project funded by the Air Quality Improvement Program and the Greenhouse Gas Reduction Fund under the State Air Resources Board.(2) A truck with a gross vehicle weight rating, as that term is defined in Section 350 of the Vehicle Code, of more than eight thousand five hundred (8,500) pounds that is a zero-emission vehicle as that term is defined in subdivision (d) of Section 44258 of the Health and Safety Code.(c) For sales or uses made on or after January 1, 2025, the exemption provided under subdivision (a) shall not apply if the purchaser received a voucher through the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project. (c) (d) (1) Notwithstanding any provision of the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by subdivision (a) does not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws. (2) Notwithstanding subdivision (a), the exemption established by this section shall not apply with respect to any tax levied pursuant to Section 6051.2 or 6201.2, pursuant to Section 35 of Article XIII of the California Constitution, or any tax levied pursuant to Section 6051 or 6201 that is deposited in the State Treasury to the credit of the Local Revenue Fund 2011 pursuant to Section 6051.15 or 6201.15. (d) (e) This section shall become inoperative on January 1, 2027, and as of that date is repealed.SEC. 2.Section 10752 of the Revenue and Taxation Code is amended to read:10752.(a)The annual amount of the license fee for any vehicle, other than a trailer or semitrailer, as described in subdivision (a) of Section 5014.1 of the Vehicle Code or a commercial motor vehicle described in Section 9400.1 of the Vehicle Code, or a trailer coach that is required to be moved under permit as authorized in Section 35790 of the Vehicle Code, shall be a sum equal to the following percentage of the market value of the vehicle as determined by the department:(1)Sixty-five hundredths of 1 percent on and after January 1, 2005, and before May 19, 2009.(2)One percent for initial and renewal registrations due on and after May 19, 2009, but before July 1, 2011.(3)Sixty-five hundredths of 1 percent for initial and renewal registrations due on and after July 1, 2011.(b)(1)Except as provided in paragraph (2), the annual amount of the license fee for any commercial vehicle as described in Section 9400.1 of the Vehicle Code, shall be a sum equal to 0.65 percent of the market value of the vehicle as determined by the department.(2)For license fees due prior to January 1, 2027, the annual amount of the license fee for a new on-road medium- or heavy-duty zero-emission truck shall be a sum equal to 0.65 percent of the market value of an equivalent new medium- or heavy-duty diesel or gasoline truck as determined by the State Air Resources Board.(c)Notwithstanding Chapter 5 (commencing with Section 11001) or any other law to the contrary, all revenues (including penalties), less refunds, attributable to that portion of the rate imposed pursuant to this section in excess of 0.65 percent shall be deposited into the General Fund.SEC. 3.SEC. 2. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:(1) The goal, purpose, or objective of the tax expenditures expenditure authorized by Section 6377.2 and the amendments to Section 10752 of the Revenue and Taxation Code, hereafter tax exemption, is to meet the ambitious goals set by Governor Newsom in Executive Order N-79-20 to transition all medium- and heavy-duty trucks in California to zero-emission vehicles in the next 15 to 25 years.(2) The performance indicator for the Legislature to use when measuring whether the tax exemption meets the goal, purpose, or objective specified in paragraph (1) is the number of sales made that qualified for the tax exemption.(b) On or before January 1, 2023, the California Department of Tax and Fee Administration shall 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. The report shall be provided in compliance with Section 9795 of the Government Code.SEC. 4.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
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| 3 | - | ||
| 3 | + | Amended IN Senate May 25, 2021 Amended IN Senate May 03, 2021 Amended IN Senate April 20, 2021 Amended IN Senate March 25, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 542Introduced by Senator Limn(Coauthors: Senators Cortese, Dodd, and Newman)February 18, 2021 An act to amend Section 10752 of, and to add and repeal Section 6377.2 of, of the Revenue and Taxation Code, relating to zero-emission vehicles, taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTSB 542, as amended, Limn. Vehicle license fees for zero-emission vehicles: sales Sales and use taxes on taxes: exemption: medium- or heavy-duty zero-emission trucks.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.This bill would provide 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, a qualified motor vehicle. The bill would define qualified motor vehicle as a specified zero-emission truck. The bill would disallow the exemption for sales or uses made on or after January 1, 2025, if the purchaser also received other specified benefits. The bill would provide that this 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 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 January 1, 2027, and as of that date is repealed.Existing law, the Vehicle License Fee Law, establishes, in lieu of any ad valorem property tax upon vehicles, an annual license fee for any vehicle subject to registration in this state at a specified percentage of the market value of that vehicle. Existing law requires the annual amount of the license fee for any commercial vehicle to be a sum equal to 0.65 percent of the market value of the vehicle as determined by the California Department of Motor Vehicles.This bill would instead require, for license fees due prior to January 1, 2027, the annual amount of the license fee for a new on-road medium- or heavy-duty zero-emission truck to be a sum equal to 0.65 percent of the market value of an equivalent new medium- or heavy-duty diesel or gasoline truck, as determined by the State Air Resources Board.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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | Amended IN Senate May 25, 2021 Amended IN Senate May 03, 2021 Amended IN Senate April 20, 2021 Amended IN Senate March 25, 2021 | |
| 6 | 6 | ||
| 7 | - | Amended IN Assembly June 22, 2022 | |
| 8 | 7 | Amended IN Senate May 25, 2021 | |
| 9 | 8 | Amended IN Senate May 03, 2021 | |
| 10 | 9 | Amended IN Senate April 20, 2021 | |
| 11 | 10 | Amended IN Senate March 25, 2021 | |
| 12 | 11 | ||
| 13 | 12 | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION | |
| 14 | 13 | ||
| 15 | 14 | Senate Bill | |
| 16 | 15 | ||
| 17 | 16 | No. 542 | |
| 18 | 17 | ||
| 19 | 18 | Introduced by Senator Limn(Coauthors: Senators Cortese, Dodd, and Newman)February 18, 2021 | |
| 20 | 19 | ||
| 21 | 20 | Introduced by Senator Limn(Coauthors: Senators Cortese, Dodd, and Newman) | |
| 22 | 21 | February 18, 2021 | |
| 23 | 22 | ||
| 24 | - | An act to add and repeal Section 6377.2 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 23 | + | An act to amend Section 10752 of, and to add and repeal Section 6377.2 of, of the Revenue and Taxation Code, relating to zero-emission vehicles, taxation, to take effect immediately, tax levy. | |
| 25 | 24 | ||
| 26 | 25 | LEGISLATIVE COUNSEL'S DIGEST | |
| 27 | 26 | ||
| 28 | 27 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 29 | 28 | ||
| 30 | - | SB 542, as amended, Limn. Sales and use taxes: exemption: medium- or heavy-duty zero-emission trucks. | |
| 29 | + | SB 542, as amended, Limn. Vehicle license fees for zero-emission vehicles: sales Sales and use taxes on taxes: exemption: medium- or heavy-duty zero-emission trucks. | |
| 31 | 30 | ||
| 32 | - | 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. | |
| 31 | + | 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.This bill would provide 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, a qualified motor vehicle. The bill would define qualified motor vehicle as a specified zero-emission truck. The bill would disallow the exemption for sales or uses made on or after January 1, 2025, if the purchaser also received other specified benefits. The bill would provide that this 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 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 January 1, 2027, and as of that date is repealed.Existing law, the Vehicle License Fee Law, establishes, in lieu of any ad valorem property tax upon vehicles, an annual license fee for any vehicle subject to registration in this state at a specified percentage of the market value of that vehicle. Existing law requires the annual amount of the license fee for any commercial vehicle to be a sum equal to 0.65 percent of the market value of the vehicle as determined by the California Department of Motor Vehicles.This bill would instead require, for license fees due prior to January 1, 2027, the annual amount of the license fee for a new on-road medium- or heavy-duty zero-emission truck to be a sum equal to 0.65 percent of the market value of an equivalent new medium- or heavy-duty diesel or gasoline truck, as determined by the State Air Resources Board.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. | |
| 33 | 32 | ||
| 34 | 33 | 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. | |
| 35 | 34 | ||
| 36 | - | 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. | |
| 37 | - | ||
| 38 | - | This bill would provide an exemption from those 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 as, among other things, a specified new zero-emission truck. truck that is eligible for a project voucher. The bill would would, however, disallow the exemption for from a sales or uses made on or after January 1, 2025, if the purchaser also received other specified benefits. 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 this 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. | |
| 35 | + | This bill would provide 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, a qualified motor vehicle. The bill would define qualified motor vehicle as a specified zero-emission truck. The bill would disallow the exemption for sales or uses made on or after January 1, 2025, if the purchaser also received other specified benefits. The bill would provide that this 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. | |
| 39 | 36 | ||
| 40 | 37 | 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. | |
| 41 | 38 | ||
| 42 | 39 | This bill would specify that this exemption does not apply to local sales and use taxes or transactions and use taxes. | |
| 43 | 40 | ||
| 44 | - | The bill would provide that the above-described exemption shall become inoperative on January 1, 2027, April 1, 2028, and as of that date is repealed. | |
| 41 | + | The bill would provide that the above-described exemption shall become inoperative on January 1, 2027, and as of that date is repealed. | |
| 42 | + | ||
| 43 | + | Existing law, the Vehicle License Fee Law, establishes, in lieu of any ad valorem property tax upon vehicles, an annual license fee for any vehicle subject to registration in this state at a specified percentage of the market value of that vehicle. Existing law requires the annual amount of the license fee for any commercial vehicle to be a sum equal to 0.65 percent of the market value of the vehicle as determined by the California Department of Motor Vehicles. | |
| 44 | + | ||
| 45 | + | ||
| 46 | + | ||
| 47 | + | This bill would instead require, for license fees due prior to January 1, 2027, the annual amount of the license fee for a new on-road medium- or heavy-duty zero-emission truck to be a sum equal to 0.65 percent of the market value of an equivalent new medium- or heavy-duty diesel or gasoline truck, as determined by the State Air Resources Board. | |
| 48 | + | ||
| 49 | + | ||
| 45 | 50 | ||
| 46 | 51 | 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. | |
| 47 | 52 | ||
| 48 | 53 | 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. | |
| 49 | 54 | ||
| 50 | 55 | This bill would take effect immediately as a tax levy. | |
| 51 | 56 | ||
| 52 | 57 | ## Digest Key | |
| 53 | 58 | ||
| 54 | 59 | ## Bill Text | |
| 55 | 60 | ||
| 56 | - | The people of the State of California do enact as follows:SECTION 1. Section 6377.2 is added to the Revenue and Taxation Code, to read:6377.2. (a) There are exempted from the taxes imposed by this part 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.(b) For purposes of this section, qualified motor vehicle means a vehicle that is both | |
| 61 | + | The people of the State of California do enact as follows:SECTION 1. Section 6377.2 is added to the Revenue and Taxation Code, to read:6377.2. (a) There are exempted from the taxes imposed by this part 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.(b) For purposes of this section, qualified motor vehicle means a vehicle that is both of the following:(1) A truck model that is eligible for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project funded by the Air Quality Improvement Program and the Greenhouse Gas Reduction Fund under the State Air Resources Board.(2) A truck with a gross vehicle weight rating, as that term is defined in Section 350 of the Vehicle Code, of more than eight thousand five hundred (8,500) pounds that is a zero-emission vehicle as that term is defined in subdivision (d) of Section 44258 of the Health and Safety Code.(c) For sales or uses made on or after January 1, 2025, the exemption provided under subdivision (a) shall not apply if the purchaser received a voucher through the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project. (c) (d) (1) Notwithstanding any provision of the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by subdivision (a) does not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws. (2) Notwithstanding subdivision (a), the exemption established by this section shall not apply with respect to any tax levied pursuant to Section 6051.2 or 6201.2, pursuant to Section 35 of Article XIII of the California Constitution, or any tax levied pursuant to Section 6051 or 6201 that is deposited in the State Treasury to the credit of the Local Revenue Fund 2011 pursuant to Section 6051.15 or 6201.15. (d) (e) This section shall become inoperative on January 1, 2027, and as of that date is repealed.SEC. 2.Section 10752 of the Revenue and Taxation Code is amended to read:10752.(a)The annual amount of the license fee for any vehicle, other than a trailer or semitrailer, as described in subdivision (a) of Section 5014.1 of the Vehicle Code or a commercial motor vehicle described in Section 9400.1 of the Vehicle Code, or a trailer coach that is required to be moved under permit as authorized in Section 35790 of the Vehicle Code, shall be a sum equal to the following percentage of the market value of the vehicle as determined by the department:(1)Sixty-five hundredths of 1 percent on and after January 1, 2005, and before May 19, 2009.(2)One percent for initial and renewal registrations due on and after May 19, 2009, but before July 1, 2011.(3)Sixty-five hundredths of 1 percent for initial and renewal registrations due on and after July 1, 2011.(b)(1)Except as provided in paragraph (2), the annual amount of the license fee for any commercial vehicle as described in Section 9400.1 of the Vehicle Code, shall be a sum equal to 0.65 percent of the market value of the vehicle as determined by the department.(2)For license fees due prior to January 1, 2027, the annual amount of the license fee for a new on-road medium- or heavy-duty zero-emission truck shall be a sum equal to 0.65 percent of the market value of an equivalent new medium- or heavy-duty diesel or gasoline truck as determined by the State Air Resources Board.(c)Notwithstanding Chapter 5 (commencing with Section 11001) or any other law to the contrary, all revenues (including penalties), less refunds, attributable to that portion of the rate imposed pursuant to this section in excess of 0.65 percent shall be deposited into the General Fund.SEC. 3.SEC. 2. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:(1) The goal, purpose, or objective of the tax expenditures expenditure authorized by Section 6377.2 and the amendments to Section 10752 of the Revenue and Taxation Code, hereafter tax exemption, is to meet the ambitious goals set by Governor Newsom in Executive Order N-79-20 to transition all medium- and heavy-duty trucks in California to zero-emission vehicles in the next 15 to 25 years.(2) The performance indicator for the Legislature to use when measuring whether the tax exemption meets the goal, purpose, or objective specified in paragraph (1) is the number of sales made that qualified for the tax exemption.(b) On or before January 1, 2023, the California Department of Tax and Fee Administration shall 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. The report shall be provided in compliance with Section 9795 of the Government Code.SEC. 4.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 57 | 62 | ||
| 58 | 63 | The people of the State of California do enact as follows: | |
| 59 | 64 | ||
| 60 | 65 | ## The people of the State of California do enact as follows: | |
| 61 | 66 | ||
| 62 | - | SECTION 1. Section 6377.2 is added to the Revenue and Taxation Code, to read:6377.2. (a) There are exempted from the taxes imposed by this part 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.(b) For purposes of this section, qualified motor vehicle means a vehicle that is both | |
| 67 | + | SECTION 1. Section 6377.2 is added to the Revenue and Taxation Code, to read:6377.2. (a) There are exempted from the taxes imposed by this part 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.(b) For purposes of this section, qualified motor vehicle means a vehicle that is both of the following:(1) A truck model that is eligible for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project funded by the Air Quality Improvement Program and the Greenhouse Gas Reduction Fund under the State Air Resources Board.(2) A truck with a gross vehicle weight rating, as that term is defined in Section 350 of the Vehicle Code, of more than eight thousand five hundred (8,500) pounds that is a zero-emission vehicle as that term is defined in subdivision (d) of Section 44258 of the Health and Safety Code.(c) For sales or uses made on or after January 1, 2025, the exemption provided under subdivision (a) shall not apply if the purchaser received a voucher through the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project. (c) (d) (1) Notwithstanding any provision of the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by subdivision (a) does not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws. (2) Notwithstanding subdivision (a), the exemption established by this section shall not apply with respect to any tax levied pursuant to Section 6051.2 or 6201.2, pursuant to Section 35 of Article XIII of the California Constitution, or any tax levied pursuant to Section 6051 or 6201 that is deposited in the State Treasury to the credit of the Local Revenue Fund 2011 pursuant to Section 6051.15 or 6201.15. (d) (e) This section shall become inoperative on January 1, 2027, and as of that date is repealed. | |
| 63 | 68 | ||
| 64 | 69 | SECTION 1. Section 6377.2 is added to the Revenue and Taxation Code, to read: | |
| 65 | 70 | ||
| 66 | 71 | ### SECTION 1. | |
| 67 | 72 | ||
| 68 | - | 6377.2. (a) There are exempted from the taxes imposed by this part 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.(b) For purposes of this section, qualified motor vehicle means a vehicle that is both | |
| 73 | + | 6377.2. (a) There are exempted from the taxes imposed by this part 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.(b) For purposes of this section, qualified motor vehicle means a vehicle that is both of the following:(1) A truck model that is eligible for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project funded by the Air Quality Improvement Program and the Greenhouse Gas Reduction Fund under the State Air Resources Board.(2) A truck with a gross vehicle weight rating, as that term is defined in Section 350 of the Vehicle Code, of more than eight thousand five hundred (8,500) pounds that is a zero-emission vehicle as that term is defined in subdivision (d) of Section 44258 of the Health and Safety Code.(c) For sales or uses made on or after January 1, 2025, the exemption provided under subdivision (a) shall not apply if the purchaser received a voucher through the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project. (c) (d) (1) Notwithstanding any provision of the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by subdivision (a) does not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws. (2) Notwithstanding subdivision (a), the exemption established by this section shall not apply with respect to any tax levied pursuant to Section 6051.2 or 6201.2, pursuant to Section 35 of Article XIII of the California Constitution, or any tax levied pursuant to Section 6051 or 6201 that is deposited in the State Treasury to the credit of the Local Revenue Fund 2011 pursuant to Section 6051.15 or 6201.15. (d) (e) This section shall become inoperative on January 1, 2027, and as of that date is repealed. | |
| 69 | 74 | ||
| 70 | - | 6377.2. (a) There are exempted from the taxes imposed by this part 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.(b) For purposes of this section, qualified motor vehicle means a vehicle that is both | |
| 75 | + | 6377.2. (a) There are exempted from the taxes imposed by this part 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.(b) For purposes of this section, qualified motor vehicle means a vehicle that is both of the following:(1) A truck model that is eligible for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project funded by the Air Quality Improvement Program and the Greenhouse Gas Reduction Fund under the State Air Resources Board.(2) A truck with a gross vehicle weight rating, as that term is defined in Section 350 of the Vehicle Code, of more than eight thousand five hundred (8,500) pounds that is a zero-emission vehicle as that term is defined in subdivision (d) of Section 44258 of the Health and Safety Code.(c) For sales or uses made on or after January 1, 2025, the exemption provided under subdivision (a) shall not apply if the purchaser received a voucher through the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project. (c) (d) (1) Notwithstanding any provision of the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by subdivision (a) does not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws. (2) Notwithstanding subdivision (a), the exemption established by this section shall not apply with respect to any tax levied pursuant to Section 6051.2 or 6201.2, pursuant to Section 35 of Article XIII of the California Constitution, or any tax levied pursuant to Section 6051 or 6201 that is deposited in the State Treasury to the credit of the Local Revenue Fund 2011 pursuant to Section 6051.15 or 6201.15. (d) (e) This section shall become inoperative on January 1, 2027, and as of that date is repealed. | |
| 71 | 76 | ||
| 72 | - | 6377.2. (a) There are exempted from the taxes imposed by this part 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.(b) For purposes of this section, qualified motor vehicle means a vehicle that is both | |
| 77 | + | 6377.2. (a) There are exempted from the taxes imposed by this part 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.(b) For purposes of this section, qualified motor vehicle means a vehicle that is both of the following:(1) A truck model that is eligible for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project funded by the Air Quality Improvement Program and the Greenhouse Gas Reduction Fund under the State Air Resources Board.(2) A truck with a gross vehicle weight rating, as that term is defined in Section 350 of the Vehicle Code, of more than eight thousand five hundred (8,500) pounds that is a zero-emission vehicle as that term is defined in subdivision (d) of Section 44258 of the Health and Safety Code.(c) For sales or uses made on or after January 1, 2025, the exemption provided under subdivision (a) shall not apply if the purchaser received a voucher through the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project. (c) (d) (1) Notwithstanding any provision of the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by subdivision (a) does not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws. (2) Notwithstanding subdivision (a), the exemption established by this section shall not apply with respect to any tax levied pursuant to Section 6051.2 or 6201.2, pursuant to Section 35 of Article XIII of the California Constitution, or any tax levied pursuant to Section 6051 or 6201 that is deposited in the State Treasury to the credit of the Local Revenue Fund 2011 pursuant to Section 6051.15 or 6201.15. (d) (e) This section shall become inoperative on January 1, 2027, and as of that date is repealed. | |
| 73 | 78 | ||
| 74 | 79 | ||
| 75 | 80 | ||
| 76 | 81 | 6377.2. (a) There are exempted from the taxes imposed by this part 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. | |
| 77 | 82 | ||
| 78 | - | (b) For purposes of this section, qualified motor vehicle means a vehicle that is both | |
| 83 | + | (b) For purposes of this section, qualified motor vehicle means a vehicle that is both of the following: | |
| 79 | 84 | ||
| 80 | - | (1) | |
| 85 | + | (1) A truck model that is eligible for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project funded by the Air Quality Improvement Program and the Greenhouse Gas Reduction Fund under the State Air Resources Board. | |
| 81 | 86 | ||
| 82 | - | (2) | |
| 87 | + | (2) A truck with a gross vehicle weight rating, as that term is defined in Section 350 of the Vehicle Code, of more than eight thousand five hundred (8,500) pounds that is a zero-emission vehicle as that term is defined in subdivision (d) of Section 44258 of the Health and Safety Code. | |
| 83 | 88 | ||
| 84 | 89 | (c) For sales or uses made on or after January 1, 2025, the exemption provided under subdivision (a) shall not apply if the purchaser received a voucher through the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project. | |
| 85 | 90 | ||
| 91 | + | (c) | |
| 86 | 92 | ||
| 87 | 93 | ||
| 88 | - | (3) The purchase of the vehicle was not made using a voucher through the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project. | |
| 89 | - | ||
| 90 | - | (4) Is a new vehicle, as that term is defined in Section 430 of the Vehicle Code. | |
| 91 | - | ||
| 92 | - | (c) (1) If, at the time a sale is made, the State Air Resources Boards internet website indicates that the vehicle is eligible for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, and all other criteria in subdivision (b) are satisfied, the taxes imposed by this part shall not apply to the sale, storage, use, or other consumption of the vehicle, notwithstanding a determination by the State Air Resources Board that the vehicle is no longer eligible for the California Hybrid and Zero-Emission Truck and Bus Voucher Project. | |
| 93 | - | ||
| 94 | - | (2) If the State Air Resources Board updates its internet website to remove a vehicle from the list of vehicles eligible for a voucher under the California Hybrid Zero-Emission Truck and Bus Voucher Incentive Project, the board shall indicate the date on which this update to its internet website was made. | |
| 95 | 94 | ||
| 96 | 95 | (d) (1) Notwithstanding any provision of the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by subdivision (a) does not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws. | |
| 97 | 96 | ||
| 98 | 97 | (2) Notwithstanding subdivision (a), the exemption established by this section shall not apply with respect to any tax levied pursuant to Section 6051.2 or 6201.2, pursuant to Section 35 of Article XIII of the California Constitution, or any tax levied pursuant to Section 6051 or 6201 that is deposited in the State Treasury to the credit of the Local Revenue Fund 2011 pursuant to Section 6051.15 or 6201.15. | |
| 99 | 98 | ||
| 100 | - | (e) This section shall become operative on April 1, 2023. | |
| 101 | - | ||
| 102 | - | (e) | |
| 99 | + | (d) | |
| 103 | 100 | ||
| 104 | 101 | ||
| 105 | 102 | ||
| 106 | - | ( | |
| 103 | + | (e) This section shall become inoperative on January 1, 2027, and as of that date is repealed. | |
| 107 | 104 | ||
| 108 | - | SEC. 2. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:(1) The goal, purpose, or objective of the tax expenditure authorized by Section 6377.2 of the Revenue and Taxation Code, hereafter tax exemption, is to meet the ambitious goals set by Governor Newsom in Executive Order N-79-20 to transition all medium- and heavy-duty trucks in California to zero-emission vehicles in the next 15 to 25 years.(2) The performance indicator for the Legislature to use when measuring whether the tax exemption meets the goal, purpose, or objective specified in paragraph (1) is the number of sales made that qualified for the tax exemption.(b) On or before January 1, 2023, 2025, and annually thereafter until January 1, 2029, the California Department of Tax and Fee Administration shall 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. The report shall be provided in compliance with Section 9795 of the Government Code. | |
| 109 | 105 | ||
| 110 | - | SEC. 2. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:(1) The goal, purpose, or objective of the tax expenditure authorized by Section 6377.2 of the Revenue and Taxation Code, hereafter tax exemption, is to meet the ambitious goals set by Governor Newsom in Executive Order N-79-20 to transition all medium- and heavy-duty trucks in California to zero-emission vehicles in the next 15 to 25 years.(2) The performance indicator for the Legislature to use when measuring whether the tax exemption meets the goal, purpose, or objective specified in paragraph (1) is the number of sales made that qualified for the tax exemption.(b) On or before January 1, 2023, 2025, and annually thereafter until January 1, 2029, the California Department of Tax and Fee Administration shall 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. The report shall be provided in compliance with Section 9795 of the Government Code. | |
| 111 | 106 | ||
| 112 | - | SEC. 2. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following: | |
| 113 | 107 | ||
| 114 | - | ### SEC. 2. | |
| 115 | 108 | ||
| 116 | - | (1) The goal, purpose, or objective of the tax expenditure authorized by Section 6377.2 of the Revenue and Taxation Code, hereafter tax exemption, is to meet the ambitious goals set by Governor Newsom in Executive Order N-79-20 to transition all medium- and heavy-duty trucks in California to zero-emission vehicles in the next 15 to 25 years. | |
| 109 | + | (a)The annual amount of the license fee for any vehicle, other than a trailer or semitrailer, as described in subdivision (a) of Section 5014.1 of the Vehicle Code or a commercial motor vehicle described in Section 9400.1 of the Vehicle Code, or a trailer coach that is required to be moved under permit as authorized in Section 35790 of the Vehicle Code, shall be a sum equal to the following percentage of the market value of the vehicle as determined by the department: | |
| 110 | + | ||
| 111 | + | ||
| 112 | + | ||
| 113 | + | (1)Sixty-five hundredths of 1 percent on and after January 1, 2005, and before May 19, 2009. | |
| 114 | + | ||
| 115 | + | ||
| 116 | + | ||
| 117 | + | (2)One percent for initial and renewal registrations due on and after May 19, 2009, but before July 1, 2011. | |
| 118 | + | ||
| 119 | + | ||
| 120 | + | ||
| 121 | + | (3)Sixty-five hundredths of 1 percent for initial and renewal registrations due on and after July 1, 2011. | |
| 122 | + | ||
| 123 | + | ||
| 124 | + | ||
| 125 | + | (b)(1)Except as provided in paragraph (2), the annual amount of the license fee for any commercial vehicle as described in Section 9400.1 of the Vehicle Code, shall be a sum equal to 0.65 percent of the market value of the vehicle as determined by the department. | |
| 126 | + | ||
| 127 | + | ||
| 128 | + | ||
| 129 | + | (2)For license fees due prior to January 1, 2027, the annual amount of the license fee for a new on-road medium- or heavy-duty zero-emission truck shall be a sum equal to 0.65 percent of the market value of an equivalent new medium- or heavy-duty diesel or gasoline truck as determined by the State Air Resources Board. | |
| 130 | + | ||
| 131 | + | ||
| 132 | + | ||
| 133 | + | (c)Notwithstanding Chapter 5 (commencing with Section 11001) or any other law to the contrary, all revenues (including penalties), less refunds, attributable to that portion of the rate imposed pursuant to this section in excess of 0.65 percent shall be deposited into the General Fund. | |
| 134 | + | ||
| 135 | + | ||
| 136 | + | ||
| 137 | + | SEC. 3.SEC. 2. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:(1) The goal, purpose, or objective of the tax expenditures expenditure authorized by Section 6377.2 and the amendments to Section 10752 of the Revenue and Taxation Code, hereafter tax exemption, is to meet the ambitious goals set by Governor Newsom in Executive Order N-79-20 to transition all medium- and heavy-duty trucks in California to zero-emission vehicles in the next 15 to 25 years.(2) The performance indicator for the Legislature to use when measuring whether the tax exemption meets the goal, purpose, or objective specified in paragraph (1) is the number of sales made that qualified for the tax exemption.(b) On or before January 1, 2023, the California Department of Tax and Fee Administration shall 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. The report shall be provided in compliance with Section 9795 of the Government Code. | |
| 138 | + | ||
| 139 | + | SEC. 3.SEC. 2. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:(1) The goal, purpose, or objective of the tax expenditures expenditure authorized by Section 6377.2 and the amendments to Section 10752 of the Revenue and Taxation Code, hereafter tax exemption, is to meet the ambitious goals set by Governor Newsom in Executive Order N-79-20 to transition all medium- and heavy-duty trucks in California to zero-emission vehicles in the next 15 to 25 years.(2) The performance indicator for the Legislature to use when measuring whether the tax exemption meets the goal, purpose, or objective specified in paragraph (1) is the number of sales made that qualified for the tax exemption.(b) On or before January 1, 2023, the California Department of Tax and Fee Administration shall 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. The report shall be provided in compliance with Section 9795 of the Government Code. | |
| 140 | + | ||
| 141 | + | SEC. 3.SEC. 2. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following: | |
| 142 | + | ||
| 143 | + | ### SEC. 3.SEC. 2. | |
| 144 | + | ||
| 145 | + | (1) The goal, purpose, or objective of the tax expenditures expenditure authorized by Section 6377.2 and the amendments to Section 10752 of the Revenue and Taxation Code, hereafter tax exemption, is to meet the ambitious goals set by Governor Newsom in Executive Order N-79-20 to transition all medium- and heavy-duty trucks in California to zero-emission vehicles in the next 15 to 25 years. | |
| 117 | 146 | ||
| 118 | 147 | (2) The performance indicator for the Legislature to use when measuring whether the tax exemption meets the goal, purpose, or objective specified in paragraph (1) is the number of sales made that qualified for the tax exemption. | |
| 119 | 148 | ||
| 120 | - | (b) On or before January 1, 2023 | |
| 149 | + | (b) On or before January 1, 2023, the California Department of Tax and Fee Administration shall 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. The report shall be provided in compliance with Section 9795 of the Government Code. | |
| 121 | 150 | ||
| 122 | - | SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 151 | + | SEC. 4.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 123 | 152 | ||
| 124 | - | SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 153 | + | SEC. 4.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 125 | 154 | ||
| 126 | - | SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 155 | + | SEC. 4.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 127 | 156 | ||
| 128 | - | ### SEC. 3. | |
| 157 | + | ### SEC. 4.SEC. 3. |