Bill > SB359

This bill amends the California Revenue and Taxation Code to expand existing tax exemptions for bus operations. Specifically, the bill adds counties to the list of entities exempt from use fuel tax and diesel fuel tax when they own and operate a local transit system. Currently, the tax exemption applied to transit districts, transit authorities, and cities, but not counties. The bill maintains existing exemptions for other types of bus operations, such as those by school districts, passenger stage corporations operating within urban or suburban areas, and private entities providing transportation services under contract with public agencies. The exemption does not apply to charter-party carriers of passengers. The bill takes effect immediately as a tax levy, with the operative date being the first day of the calendar quarter starting more than 90 days after its effective date. The purpose of this legislation is to provide financial relief to local transit operators and support public transportation services by reducing their fuel tax burden.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB359