Sales and Use Tax Law: exemptions: firefighting equipment.

Senator Alvarado-Gil's proposal to exempt firefighting equipment purchases from California sales and use taxes aims to reduce costs for fire departments and districts across the state. The exemption would apply to firefighting apparatus, specialized vehicles, and related equipment purchased between January 2026 and January 2031.

The California Department of Tax and Fee Administration would track the number of departments utilizing the exemption and the total value of exempt purchases. The department must submit annual reports to the Legislature beginning April 2027 to document these metrics. While the exemption would automatically apply to local sales taxes under the Bradley-Burns law, the bill specifies that local governments would not receive state reimbursement for resulting revenue reductions.

The five-year exemption period allows for evaluation of whether reducing equipment acquisition costs enables more efficient resource allocation by fire departments, as outlined in the bill's stated objectives. The proposal maintains existing requirements for new tax expenditures by establishing specific performance indicators and data collection protocols to assess outcomes.