California 2023-2024 Regular Session

California Assembly Bill AB291

Introduced
1/25/23  
Refer
2/2/23  
Introduced
1/25/23  
Introduced
1/25/23  
Failed
2/1/24  
Refer
2/2/23  
Refer
2/2/23  
Failed
2/1/24  

Caption

Sales and Use Tax: exemptions: trucks for use in interstate or out-of-state commerce.

Impact

The proposed legislation alters existing tax provisions that previously required the state to compensate local agencies for revenue losses associated with such exemptions. AB 291 explicitly states that the state will not reimburse local agencies for lost sales and use tax revenues due to this bill. This can significantly impact local budgets, specifically affecting municipalities that rely on these tax revenues for public services. By preventing state reimbursement, the bill centralizes financial responsibility and softens the fiscal impact on the state government while shifting the burden onto local jurisdictions.

Summary

Assembly Bill 291, introduced by Assembly Member Jim Patterson, proposes amendments to Section 6388.5 of the California Revenue and Taxation Code, specifically addressing sales and use tax exemptions for trucks utilized in interstate or out-of-state commerce. This bill is aimed at extending the current sales tax exemption on new, used, or remanufactured trucks with an unladen weight of 6,000 pounds or more, originally set to expire on January 1, 2024. If passed, the exemption will be extended until January 1, 2029. This change reflects the state's recognition of the importance of the trucking industry in overall interstate commerce operations.

Contention

There may be substantial debate surrounding AB 291. Proponents argue that extending the tax exemption will invigorate sales of commercial trucks used in interstate commerce, thus fostering economic growth in California's transportation sector. However, opponents may raise concerns regarding the loss of local revenue, which could lead to negative implications for community funding and services. Critics might also label the bill a move towards state-level intervention in local fiscal matters, stifling the autonomy of cities and counties to manage their financial resources effectively.

Companion Bills

No companion bills found.

Previously Filed As

CA AB321

Sales and use taxes: exemptions: trucks for use in interstate or out-of-state commerce.

CA AB314

Sales and Use Tax: exemptions: trucks for use in interstate or out-of-state commerce.

CA AB3193

Sales and use taxes: exemptions: trucks for use in interstate or foreign commerce.

CA AB365

Sales and use taxes: exemption: zero-emission and near-zero-emission drayage trucks.

CA SB542

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

CA AB2622

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

CA S0095

Exempts the trade-in value of pickup trucks under six thousand pounds (6,000 lbs.) gross weight, used exclusively for personal use, from sales tax.

CA SB1473

Local Government Omnibus Act of 2020.

CA SB752

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

CA HB716

Decreases the state sales and use tax rate and repeals exclusions and exemptions from state sales and use tax (OR SEE FISC NOTE GF RV)

Similar Bills

CA AB314

Sales and Use Tax: exemptions: trucks for use in interstate or out-of-state commerce.

CA AB321

Sales and use taxes: exemptions: trucks for use in interstate or out-of-state commerce.

CA AB3193

Sales and use taxes: exemptions: trucks for use in interstate or foreign commerce.

CA SB1473

Local Government Omnibus Act of 2020.

CA AB365

Sales and use taxes: exemption: zero-emission and near-zero-emission drayage trucks.

CA SB615

Vehicle traction batteries.

OH HB195

Create an adaptive mobility dealer license

OK HB1136

Motor vehicles; High-mobility Multipurpose Wheeled Vehicles; registration; use on highways; codification; effective date.