Bill > SB359

This bill amends the Use Fuel Tax Law and Diesel Fuel Tax Law to expand tax exemptions for local transit systems. Specifically, the bill extends existing tax exemptions to counties that own and operate local transit systems, in addition to the current exemptions for transit districts, transit authorities, and cities. The bill also updates references from the "State Board of Equalization" to the "California Department of Tax and Fee Administration" to reflect a previous administrative transfer of tax-related duties. The tax exemptions apply to fuel used by various types of transit operations, including local transit systems, school transportation, and certain private transportation services under contract with public agencies. While the bill provides tax relief for these transit operators, it maintains a requirement that they pay a small fee (one cent per gallon) for using state highways and freeways. The bill will take effect immediately as a tax levy but will become operationally effective on the first day of the calendar quarter following 90 days after its effective date, providing a transition period for implementation.

Budget and Finance

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