Bill > SB516

This bill amends California's Revenue and Taxation Code to exclude the value of a motorcycle traded in for a new motorcycle from sales and use taxes, provided that the trade-in value is clearly listed on the invoice or bill of sale for the new motorcycle. This exclusion applies to the "sales price," which is the total amount a buyer pays for goods, and "gross receipts," which are the total amounts a seller receives from sales. For the purposes of this bill, a "motorcycle" is defined as it is in Section 400 of the Vehicle Code. These provisions are temporary and will be repealed on January 1, 2017. The bill also states that the state will not reimburse local agencies for any lost sales and use tax revenues due to this change and that the act takes effect immediately as a tax levy, becoming operative on the first day of the first calendar quarter more than 90 days after its effective date.