CaliforniaSales and use taxes: exclusion: pawnbrokers: transfer of vested property.
What it does
Existing state sales and use tax laws impose a tax on retailers measured by the 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. Existing law defines "sale" and "purchase" for these purposes and provides certain exclusions from those definitions.
More detail
Existing law, until January 1, 2027, excludes the transfer of vested property by a pawnbroker to a person who pledged the property to the pawnbroker as security for a loan, if specified requirements are met, from the definition of "sale" and "purchase," thus excluding that transfer from imposition of sales and use tax.
This bill would extend the exclusion of the transfer of vested property by a pawnbroker to the person who pledged it, as described above, until January 1, 2032.
Existing law requires a bill authorizing a sales and use tax exemption to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include that additional information required for the above sales and use tax exclusion.
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.
Existing law requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions.
This bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse any local agencies for sales and use tax revenues lost by them pursuant to this bill.
This bill would take effect immediately as a tax levy.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jul 13Chaptered by Secretary of State - Chapter 76, Statutes of 2026.Latest
- Jul 13Approved by the Governor Gavin Newsom.Became Law
- Jul 2Enrolled and presented to the Governor at 3 p.m.To Governor
- Jun 25In Assembly. Ordered to Engrossing and Enrolling.Minor
- Vote recorded Consent Calendar 2nd AB2641 Michelle Rodriguez. Result: pass.Upper
- Jun 25Read third time. Passed. Ordered to the Assembly. (Ayes 36. Noes 0. Page 5015.).Passed Senate
- Jun 23Read second time. Ordered to Consent Calendar.Minor
- Jun 22From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar.Minor
- Jun 10From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 5. Noes 0.) (June 10). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar. Result: pass.Upper
- May 27Referred to Com. on REV. & TAX.Minor
- May 18In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 2641 Michelle Rodriguez Assembly Third Reading. Result: pass.Lower
- May 18Read third time. Passed. Ordered to the Senate. (Ayes 72. Noes 0. Page 5137.)Passed Assembly
- May 14Read second time. Ordered to third reading.Minor
- May 13From committee: Do pass. (Ayes 15. Noes 0.) (May 13).Minor
- Vote recorded Do pass. Result: pass.Lower
- Apr 22Re-referred to Com. on APPR.Minor
- Apr 21Read second time and amended.Major
- Apr 20From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (April 13).Major
- Apr 13
- Vote recorded Do pass as amended and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Mar 17Re-referred to Com. on REV. & TAX.Minor
- Mar 16From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.Major
- Mar 16Referred to Com. on REV. & TAX.Minor
- Feb 21From printer. May be heard in committee March 23.
- Feb 20Read first time. To print.Introduced