CA SB542

Exempts sales and use taxes on qualified medium- and heavy-duty zero-emission trucks that are eligible for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, effective April 1, 2023.

Defines qualified motor vehicles as new trucks with gross vehicle weight rating over 8,500 pounds that are zero-emission vehicles and eligible for the state voucher program, but only if the purchase was not made using a voucher.

Exemption applies based on State Air Resources Board website eligibility at time of purchase, regardless of subsequent eligibility determinations by the board.

Exemption does not apply to local sales and use taxes, transactions and use taxes, or certain state taxes deposited into the Local Revenue Fund or Local Public Safety Fund.

Exemption becomes inoperative and repealed on April 1, 2028; requires California Department of Tax and Fee Administration to report annually on exemption usage through January 1, 2029.