Bill > SB1275

This bill, effective immediately as a tax levy, proposes a temporary exemption from state sales and use taxes on the purchase of new motor vehicles between January 1, 2027, and January 1, 2032, meaning that for a period of five years, consumers would not pay sales tax on these new vehicles. However, this exemption specifically excludes local sales and use taxes imposed by cities, counties, or districts, as well as certain state sales and use tax rates dedicated to local government funding, such as those deposited into the Local Revenue Fund 2011. Concurrently, the bill introduces a new, additional vehicle license fee, also effective from January 1, 2027, to January 1, 2032, which will be equal to the amount of sales tax that would have been paid on the new motor vehicle if the exemption were not in place; this fee will be collected by dealers and remitted to the state, with the revenue ultimately going into the General Fund. This measure requires a two-thirds legislative approval because it results in a taxpayer paying a higher tax under Article XIII A of the California Constitution.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB1275