Sales and use taxes: exclusion: low-emission motor vehicle: trade-in.

Existing sales and use tax laws impose taxes on retailers measured by gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, measured by sales price. The Sales and Use Tax Law defines the terms "gross receipts" and "sales price." This bill, before January 1, 2025, would exclude from the terms "gross receipts" and "sales price" the value of a qualified trade-in motor vehicle that is traded in for a qualified motor vehicle, as defined, if the value of the qualified trade-in motor vehicle is separately stated on the invoice or bill of sale or similar document provided to the purchaser. The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws. This bill would specify that this exclusion would not apply to local sales and use taxes, transactions and use taxes, and specified state taxes from which revenues are deposited into the Local Public Safety Fund, the Local Revenue Fund, or the Local Revenue Fund 2011. This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.