California 20252026 Regular Session Status: To Executive 1 D cosponsors

SB 1406 — Sales and Use Tax Law: vehicles: shell companies.

Last action — Approved by the Governor.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill has been sent to the executive. Introduced February 20, 2026. It awaits signature.

Next likely step: the executive signs it into law or issues a veto.

Odds of enactment

Moderate chance

Based on the sponsor, cosponsors, and committee posture, this bill has a moderate chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 66% · moderate confidence

  • To Executive

    Current position in the legislative process.

  • 2 sponsors

    1 primary, 1 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 D).

  • Cleared a recorded vote

    Passed 5 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

In plain language

This bill expands tax residency definitions for partnerships and shell companies in California.

The bill updates the Sales and Use Tax Law to define partnerships and shell companies as California residents based on ownership. It holds certain individuals in shell companies personally liable for unpaid taxes on vehicle purchases.

What this means for you
  • Small Business: This could affect small businesses operating as partnerships or shell companies regarding their tax liabilities.

Summary

Sales and Use Tax Law: vehicles: shell companies.

Bill Text

Action History

  1. Approved by the Governor.

  2. Enrolled and presented to the Governor at 3 p.m.

  3. In Senate. Ordered to engrossing and enrolling.

  4. Read third time. Passed. (Ayes 59. Noes 19. Page 6619.) Ordered to the Senate.

  5. Read second time. Ordered to third reading.

  6. From committee: Do pass. (Ayes 11. Noes 4.) (August 13).

  7. Assembly Rule 63 suspended.

  8. August 5 set for first hearing. Placed on suspense file.

  9. From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 2.) (June 29). Re-referred to Com. on APPR.

  10. June 15 set for first hearing. Placed on suspense file.

  11. Referred to Com. on REV. & TAX.

  12. In Assembly. Read first time. Held at Desk.

  13. Read third time. Passed. (Ayes 31. Noes 8. Page 4339.) Ordered to the Assembly.

  14. Read second time. Ordered to third reading.

  15. From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

  16. Set for hearing May 11.

  17. From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0. Page 4154.) (May 6). Re-referred to Com. on APPR.

  18. From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.

  19. Set for hearing May 6.

  20. Re-referred to Com. on REV. & TAX.

  21. From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  22. Referred to Com. on RLS.

  23. Read first time.

  24. From printer. May be acted upon on or after March 23.

  25. Introduced. To Com. on RLS. for assignment. To print.

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 1 co-sponsors · 120 not signed on · 26 voted No

Sponsors (1)

Co-sponsors (1)

  • Grayson

Not signed on (120)

120 members have not signed on to this bill.

Show all 120 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

SB 1406 McNerney Senate Third Reading By Aguiar-Curry

Passed 59 Yea · 19 Nay · 1 Other
Party YeaNayPresentNot Voting
Republican 01800
Democratic 53001
Unaffiliated 6100
Total 591901
% of votes cast 75%24%0%1%
How each member voted (79)
Member Party Vote
Patterson — Nay
Ávila Farías — Yea
Rivas — Yea
Carrillo — Yea
Fong — Yea
Garcia — Yea
Lowenthal — Yea
Addis, Dawn Democratic Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Ahrens, Patrick Democratic Yea
Alvarez, David Democratic Yea
Arambula, Joaquin Democratic Yea
Bains, Jasmeet Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Caloza, Jessica Democratic Yea
Connolly, Damon Democratic Yea
Elhawary, Sade Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
González, Mark Democratic Yea
Haney, Matt Democratic Yea
Harabedian, John Democratic Yea
Hart, Gregg Democratic Yea
Irwin, Jacqui Democratic Yea
Jackson, Corey A. Democratic Yea
Kalra, Ash Democratic Yea
Krell, Maggy Democratic Yea
Lee, Alex Democratic Yea
McKinnor, Tina Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie Democratic Yea
Ortega, Liz Democratic Yea
Pacheco, Blanca Democratic Yea
Papan, Diane Democratic Yea
Patel, Darshana R. Democratic Yea
Pellerin, Gail Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Not Voting
Ransom, Rhodesia Democratic Yea
Rodriguez, Celeste Democratic Yea
Rodriguez, Michelle Democratic Yea
Rogers, Chris Democratic Yea
Rubio, Blanca E. Democratic Yea
Schiavo, Pilar Democratic Yea
Schultz, Nick Democratic Yea
Sharp-Collins, LaShae Democratic Yea
Solache, Jr., José Luis Democratic Yea
Soria, Esmeralda Democratic Yea
Stefani, Catherine Democratic Yea
Valencia, Avelino Democratic Yea
Ward, Christopher M. Democratic Yea
Wicks, Buffy Democratic Yea
Wilson, Lori D. Democratic Yea
Zbur, Rick Chavez Democratic Yea
Alanis, Juan Republican Nay
Castillo, Leticia Republican Nay
Chen, Phillip Republican Nay
Davies, Laurie Republican Nay
DeMaio, Carl Republican Nay
Dixon, Diane Republican Nay
Ellis, Stan Republican Nay
Flora, Heath Republican Nay
Gonzalez, Jeff Republican Nay
Hadwick, Heather Republican Nay
Hoover, Josh Republican Nay
Johnson, Natasha Republican Nay
Lackey, Tom Republican Nay
Macedo, Alexandra Republican Nay
Sanchez, Kate Republican Nay
Ta, Tri Republican Nay
Tangipa, David J. Republican Nay
Wallis, Greg Republican Nay

Official roll call →

Do pass.

Passed 11 Yea · 4 Nay
Party YeaNayPresentNot Voting
Democratic 11000
Republican 0400
Total 11400
% of votes cast 73%27%0%0%
How each member voted (15)
Member Party Vote
Arambula, Joaquin Democratic Yea
Calderon, Lisa Democratic Yea
Caloza, Jessica Democratic Yea
Fong, Mike Democratic Yea
González, Mark Democratic Yea
Krell, Maggy Democratic Yea
Pacheco, Blanca Democratic Yea
Pellerin, Gail Democratic Yea
Sharp-Collins, LaShae Democratic Yea
Solache, Jr., José Luis Democratic Yea
Wicks, Buffy Democratic Yea
Dixon, Diane Republican Nay
Hoover, Josh Republican Nay
Ta, Tri Republican Nay
Tangipa, David J. Republican Nay

Official roll call →

3rd Reading SB1406 McNerney et al.

Passed 31 Yea · 8 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 30000
Republican 1801
Total 31801
% of votes cast 78%20%0%3%
How each member voted (40)
Member Party Vote
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Arreguín, Jesse Democratic Yea
Ashby, Angelique V. Democratic Yea
Becker, Josh Democratic Yea
Blakespear, Catherine S. Democratic Yea
Cabaldon, Christopher Democratic Yea
Caballero, Anna M. Democratic Yea
Cervantes, Sabrina Democratic Yea
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Gonzalez, Lena A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Hurtado, Melissa Democratic Yea
Laird, John Democratic Yea
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
McNerney, Jerry Democratic Yea
Menjivar, Caroline Democratic Yea
Padilla, Stephen C. Democratic Yea
Pérez, Sasha Renée Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Richardson, Laura Democratic Yea
Rubio, Susan Democratic Yea
Smallwood-Cuevas, Lola Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wahab, Aisha Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wiener, Scott D. Democratic Yea
Alvarado-Gil, Marie Republican Nay
Choi, Steven S. Republican Yea
Dahle, Megan Republican Nay
Grove, Shannon Republican Nay
Jones, Brian W. Republican Nay
Niello, Roger W. Republican Not Voting
Ochoa Bogh, Rosilicie Republican Nay
Seyarto, Kelly Republican Nay
Strickland, Tony Republican Nay
Valladares, Suzette Martinez Republican Nay

Official roll call →

Subjects

public-safety taxation technology energy
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 1406 do?
Sales and Use Tax Law: vehicles: shell companies.
Who sponsors SB 1406?
SB 1406 is sponsored by Grayson and McNerney, Jerry (Democratic).
What is the current status of SB 1406?
This bill has been sent to the executive. Introduced February 20, 2026. It awaits signature.
Where can I track SB 1406?
Track SB 1406 free on One Click Politics — get push/email alerts when it moves.

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