SB 114 Summary

• Requires used vehicle dealers (excluding new motor vehicle dealers) to collect and remit sales tax to the Department of Motor Vehicles within 30 days of sale, effective January 1, 2021, with the DMV withholding registration until tax is paid.

• Extends sales and use tax exemptions for diapers and menstrual hygiene products from January 1, 2022 to July 1, 2023, and delays the Legislative Analyst's Office reporting deadline to July 1, 2022.

• Caps motion picture tax credit refunds and offsets at $5,000,000 per year for taxable years 2020-2022, with excess amounts carried forward to offset against future sales and use taxes beginning in 2024.

• Limits total insurance tax credits and personal income/corporation tax credits to $5,000,000 maximum reduction for tax years 2020-2022, with extended carryover periods for unused credits.

• Disallows net operating loss deductions for taxable years 2020-2022 (with exceptions for taxpayers under $1,000,000 income threshold) and extends carryover periods; exempts first-year limited partnerships, LLCs, and LLPs from annual franchise tax when budget appropriation is made.