CA AB85

Requires non-new motor vehicle dealers to collect and remit sales tax on vehicle sales to the Department of Motor Vehicles within 30 days of sale, effective January 1, 2021, with penalties for late or non-compliance.

Extends sales and use tax exemptions for diapers and menstrual hygiene products from January 1, 2022 to July 1, 2023, with no state reimbursement to local agencies for revenue losses.

Caps total business tax credits at $5,000,000 per year for taxable years 2020-2022, with disallowed credits carrying forward with extended carryover periods.

Disallows net operating loss deductions for taxable years 2020-2022 for taxpayers earning over $1,000,000, with extended carryover periods to subsequent years.

Exempts newly formed limited partnerships, limited liability partnerships, and limited liability companies from franchise taxes for their first taxable year if a budget appropriation is made, effective 2021-2024.