California SB1275 exempts sales tax on used and new motor vehicles from 2027 to 2032, imposing an additional license fee instead.

California SB1275 amends the Revenue and Taxation Code to exempt sales tax on used and new motor vehicles from 2027 to 2032. Instead of sales tax, an additional license fee is imposed on these vehicles, equal to the tax amount that would have been paid. This fee is collected by dealers and remitted to the Department of Motor Vehicles, which then reports and deposits the funds in the General Fund. The exemption does not apply to local taxes. The provisions are set to expire on January 1, 2032.

California SB1275 exempts sales tax on used and new motor vehicles from 2027 to 2032, imposing an additional license fee instead.

California SB1275 amends the Revenue and Taxation Code to exempt sales tax on used and new motor vehicles from 2027 to 2032. Instead of sales tax, an additional license fee is imposed on these vehicles, equal to the tax amount that would have been paid. This fee is collected by dealers and remitted to the Department of Motor Vehicles, which then reports and deposits the funds in the General Fund. The exemption does not apply to local taxes. The provisions are set to expire on January 1, 2032.