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Car Sales Tax Exemption

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Sacramento, CA — A local State Senator has introduced a bill that is designed to help buyers of new cars.

Senator Tom Berryhill’s SB 732 passed through the Senate Committee on Governance and Finance yesterday. If someone trades in a vehicle, it would not be subject to state sales tax, if the person in turn purchases a new vehicle.

Proponents argue currently it results in “double taxation” when you trade in a car and purchase a new one. “I think SB 732 will encourage folks to buy new cars and that is good for the economy,” says Berryhill.

The bill is endorsed by the California New Car Dealers Association and the California Motorcycle Dealers Association.