Sales and use taxes: exemptions: California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project: transit buses.

Senator Richardson's proposal to extend California's sales tax exemption for zero-emission transit buses would maintain the existing tax relief for public agencies purchasing these vehicles through January 1, 2028. The current exemption, set to expire January 1, 2026, applies to buses sold to cities, counties, transit districts, and other public agencies that qualify for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project.

The bill defines several categories of eligible vehicles, including articulated buses up to 60 feet long, cutaway buses built on modified truck chassis, double-decker buses carrying 40-80 passengers, and trolley buses powered by overhead electrical lines. To qualify, vehicles must have a gross vehicle weight rating above 14,000 pounds and be purchased by public agencies providing transit services.

The exemption excludes certain local tax provisions, including those under the Bradley-Burns Uniform Local Sales and Use Tax Law and taxes deposited in the Local Revenue Fund 2011. The measure would take effect immediately upon enactment as a tax levy, requiring a majority vote for passage.