Bill > AB85

This bill: 1. Requires dealers, other than new motor vehicle dealers, to pay the applicable sales tax to the Department of Motor Vehicles when selling a vehicle at retail on or after January 1, 2021. It also imposes penalties on dealers for not timely submitting the sales tax payment or tax return. 2. Extends the existing sales tax exemptions for diapers for infants, toddlers, and children and menstrual hygiene products until July 1, 2023. It also requires the Legislative Analyst's Office to submit a report by July 1, 2022 on the effectiveness of these exemptions. 3. Places a $5 million cap on the total amount of refunds or credit offsets that can be claimed in lieu of qualified motion picture tax credits for taxable years beginning on or after January 1, 2020 and before January 1, 2023. 4. Places a $5 million cap on the total amount of insurance tax credits and business credits that can be claimed for taxable years beginning on or after January 1, 2020 and before January 1, 2023. 5. Disallows net operating loss deductions for taxable years beginning on or after January 1, 2020 and before January 1, 2023, subject to certain exceptions. 6. Exempts limited partnerships, limited liability partnerships, and limited liability companies that file, register, or organize to do business in the state from the annual tax in their first taxable year, if a specified appropriation is made. 7. Allows the new advanced strategic aircraft credit to reduce a taxpayer's regular tax below the tentative minimum tax for taxable years beginning on or after January 1, 2020 and before January 1, 2026. 8. Limits the maximum monthly penalty for failure to maintain minimum essential health coverage for large households and prioritizes the payment of the Individual Shared Responsibility Penalty. This bill is related to the budget and will take effect immediately.

Budget and Finance

Budget (Assembly)

http://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=201920200AB85