CA SBX65

Excludes the value of a motor vehicle traded in for a new motor vehicle (including motorcycles) from state sales and use tax calculations, provided the trade-in value is separately stated on the invoice or bill of sale.

Amends Sections 6011 and 6012 of the Revenue and Taxation Code to add this exclusion to the definitions of "sales price" and "gross receipts."

Specifies that the state will not reimburse local agencies, counties, or cities for sales and use tax revenue losses resulting from this exemption, notwithstanding existing reimbursement provisions in Section 2230.

Takes effect immediately as a tax levy, but operative provisions begin on the first day of the first calendar quarter more than 90 days after the effective date.