CA AB1891

Exempts from state sales and use taxes the gross receipts from sale and storage/use of equipment purchased primarily for water desalination through January 1, 2025.

Defines "water desalination" as a process removing salt and minerals from saline water to produce fresh water for human consumption or irrigation.

Exemption automatically repeals on January 1, 2025, unless extended by later statute enacted before that date.

State shall not reimburse local agencies or counties for sales and use tax revenue losses resulting from this exemption, notwithstanding existing reimbursement requirements.

Takes immediate effect as a tax levy but becomes operative on the first day of the first calendar quarter commencing more than 90 days after the effective date.