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CA SB1275
Bill
Status
Introduced
2/20/2026
Primary Sponsor
Jerry McNerney
Click for details
AI Summary
- Exempts new motor vehicles from state sales and use taxes from January 1, 2027, through December 31, 2031
- Creates a new vehicle license fee equal to the exempted sales tax amount, effectively shifting the tax from sales tax to a license fee while maintaining the same cost to consumers
- Requires dealers to collect the new license fee as a separate line item and remit funds to the Department of Motor Vehicles for deposit into the General Fund
- Exempts local sales and use taxes from this provision, meaning local taxes on new vehicle purchases would still apply
- Requires a two-thirds legislative vote for passage due to the new fee constituting a higher tax under the California Constitution
Legislative Description
Sales and use tax exemption: vehicle license fee imposition: motor vehicles.
Last Action
Referred to Coms. on REV. & TAX. and TRANS.
3/4/2026
Committee Referrals
Revenue and Taxation3/4/2026
Rules2/20/2026
Full Bill Text
No bill text available