Bill Text: CA SB542 | 2021-2022 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Sales and use taxes: exemption: medium- or heavy-duty zero-emission trucks.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed - Dead) 2022-08-11 - August 11 hearing: Held in committee and under submission. [SB542 Detail]

Download: California-2021-SB542-Introduced.html

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CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill

No. 542

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Introduced by Senator Limón

February 18, 2021

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An act to repeal Section 9250.6 of the Vehicle Code, relating to zero-emission vehicles.

LEGISLATIVE COUNSEL'S DIGEST

SB 542, as introduced, Limón. Zero-emission vehicles: fees.

Existing law, commencing July 1, 2020, imposes a road improvement fee of $100 to be paid to the Department of Motor Vehicles for registration or renewal of registration of every zero-emission motor vehicle with a model year of 2020 or later, as specified. Existing law requires the department to deposit revenues from the road improvement fee, after deducting administrative costs, in the Road Maintenance and Rehabilitation Account within the State Transportation Fund.

This bill would repeal those provisions.

This bill would additionally state the intent of the Legislature to enact legislation to create parity between zero-emission trucks and their internal-combustion engine equivalents with regard to Department of Motor Vehicle fees and sales taxes paid by owners of those vehicles.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 It is the intent of the Legislature to enact legislation to create parity between zero-emission trucks and their internal-combustion engine equivalents with regard to Department of Motor Vehicle fees and sales taxes paid by owners of those vehicles.

SEC. 2.

 Section 9250.6 of the Vehicle Code is repealed.

9250.6.

(a)In addition to any other fees specified in this code, or the Revenue and Taxation Code, commencing July 1, 2020, a road improvement fee of one hundred dollars ($100) shall be paid to the department for registration or renewal of registration of every zero-emission motor vehicle model year 2020 and later subject to registration under this code, except those motor vehicles that are expressly exempted under this code from payment of registration fees.

(b)On January 1, 2021, and every January 1 thereafter, the Department of Motor Vehicles shall adjust the road improvement fee imposed under subdivision (a) by increasing the fee in an amount equal to the increase in the California Consumer Price Index for the prior year, except the first adjustment shall cover the prior six months, as calculated by the Department of Finance, with amounts equal to or greater than fifty cents ($0.50) rounded to the highest whole dollar. The incremental change shall be added to the associated fee rate for that year.

(c)Any changes to the road improvement fee imposed by subdivision (a) that are enacted by legislation subsequent to July 1, 2017, shall be deemed to be changes to the base fee rate for purposes of the California Consumer Price Index calculation and adjustment performed pursuant to subdivision (b).

(d)Revenues from the road improvement fee, after deduction of the department’s administrative costs related to this section, shall be deposited in the Road Maintenance and Rehabilitation Account created pursuant to Section 2031 of the Streets and Highways Code.

(e)This section does not apply to a commercial motor vehicle subject to Section 9400.1.

(f)This section does not apply to a vehicle issued apportioned registration pursuant to the International Registration Plan.

(g)The road improvement fee required pursuant to this section does not apply to the initial registration after the purchase of a new zero-emission motor vehicle.

(h)For purposes of this section, “zero-emission motor vehicle” means a motor vehicle as described in subdivision (d) of Section 44258 of the Health and Safety Code.