CA SB1338

Exempts from state sales and use taxes the purchase and use of zero-emission and near-zero-emission equipment at California public ports from January 1, 2017 through December 31, 2029.

Covers qualified tangible personal property used by stevedores, marine terminal operators, and freight yard operators primarily (50% or more) for cargo handling and movement, including computers, software, repair parts, and special purpose buildings.

Requires purchasers to provide retailers with an exemption certificate; exemption does not apply to local sales taxes, transactions and use taxes, or specific state taxes deposited into designated local revenue funds.

Exemption does not apply if property is removed from California, converted to non-exempt use, or otherwise used in a non-qualifying manner within one year of purchase.

Requires the Department of Finance to estimate annual exemption amounts and the State Board of Equalization to report actual exemptions taken by March 1 each year, comparing actual amounts to estimates.