California 2021-2022 Regular Session Status: To Executive 5 D cosponsors

AB 1951 — Sales and use tax: exemptions: manufacturing.

Last action — Vetoed by Governor.

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

This bill died with 2021-2022 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing sales and use tax laws impose taxes 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. The Sales and Use Tax Law provides various exemptions from those taxes, including a partial exemption from those taxes, on and after July 1, 2014, and before July 1, 2030, for the gross receipts from the sale of, and the storage, use, or other consumption of, qualified tangible personal property purchased by a qualified person for purchases not exceeding $200,000,000, for use primarily in manufacturing, processing, refining, fabricating, or recycling of tangible personal property, as specified; qualified tangible personal property purchased for use by a qualified person to be used primarily in research and development, as provided; qualified tangible personal property purchased for use by a qualified person to be used primarily to maintain, repair, measure, or test any qualified tangible personal property, as provided; and qualified tangible personal property purchased by a contractor purchasing that property for use in the performance of a construction contract for the qualified person, that will use that property as an integral part of specified processes. Existing law, on and after January 1, 2018, and before July 1, 2030, additionally exempts from those taxes the sale of, and the storage, use, or other consumption of, qualified tangible personal property purchased for use by a qualified person to be used primarily in the generation or production, as defined, or storage and distribution, as defined, of electric power. This bill would, on and after January 1, 2023, and before January 1, 2028, make this a full exemption for purchases not exceeding $200,000,000. The bill would repeal these provisions on January 1, 2028, and would revert to the above-described partial exemption on that date. Existing law requires any bill authorizing a new tax expenditure 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 require the California Department of Tax and Fee Administration to submit a report to the Legislature on the exemption and would provide findings and declarations relating to the goals of the exemption. 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.

Bill Text

Action History

  1. Vetoed by Governor.

  2. Enrolled and presented to the Governor at 4 p.m.

  3. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 69. Noes 0.).

  4. Assembly Rule 77(a) suspended.

  5. In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 27 pursuant to Assembly Rule 77.

  6. Read third time. Passed. Ordered to the Assembly. (Ayes 31. Noes 3. Page 5122.).

  7. Read second time. Ordered to third reading.

  8. From committee: Do pass. (Ayes 7. Noes 0.) (August 11).

  9. In committee: Referred to suspense file.

  10. Read second time and amended. Re-referred to Com. on APPR.

  11. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (June 29).

  12. Referred to Com. on GOV. & F.

  13. In Senate. Read first time. To Com. on RLS. for assignment.

  14. Read third time. Passed. Ordered to the Senate. (Ayes 74. Noes 0. Page 5032.)

  15. Read second time. Ordered to third reading.

  16. Read second time and amended. Ordered returned to second reading.

  17. From committee: Amend, and do pass as amended. (Ayes 12. Noes 0.) (May 19).

  18. Joint Rule 62(a), file notice suspended. (Page 4736.)

  19. In committee: Set, first hearing. Referred to suspense file.

  20. From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (May 5). Re-referred to Com. on APPR.

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

  22. From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

  23. In committee: Hearing for testimony only.

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

  25. From printer. May be heard in committee March 13.

  26. Read first time. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 10 co-sponsors · 111 not signed on · 1 voted No

Sponsors (1)

Co-sponsors (10)

Not signed on (111)

111 members have not signed on to this bill.

Show all 111 →

"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

AB 1951 Grayson Concurrence in Senate Amendments

Passed 69 Yea · 0 Nay · 11 Other
Party YeaNayPresentNot Voting
Unaffiliated 34005
Republican 6003
Democratic 29003
Total 690011
% of votes cast 86%0%0%14%
How each member voted (80)
Member Party Vote
Mullin — Yea
Holden — Yea
Villapudua — Yea
Jones-Sawyer — Yea
Santiago — Yea
Maienschein — Yea
Rodriguez — Yea
Quirk — Yea
Wood — Yea
Kiley — Yea
Mayes — Yea
Nazarian — Yea
Ting — Yea
Low — Yea
Levine — Yea
O'Donnell — Yea
Waldron — Yea
Daly — Yea
McCarty — Yea
Medina — Yea
Cooper — Yea
Bloom — Yea
Friedman — Yea
Voepel — Yea
Cooley — Yea
Mathis — Yea
Rendon — Yea
Gray — Not Voting
Smith — Not Voting
Cunningham — Not Voting
Bigelow — Not Voting
Salas — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Luz Rivas — Yea
Mark Stone — Yea
Vince Fong — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Alvarez, David Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Not Voting
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Haney, Matt Democratic Yea
Irwin, Jacqui Democratic Not Voting
Kalra, Ash Democratic Yea
Lee, Alex Democratic Yea
McKinnor, Tina Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Ward, Christopher M. Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wicks, Buffy Democratic Yea
Wilson, Lori D. Democratic Not Voting
Chen, Phillip Republican Yea
Choi, Steven S. Republican Not Voting
Dahle, Megan Republican Yea
Davies, Laurie Republican Not Voting
Flora, Heath Republican Yea
Gallagher, James Republican Not Voting
Lackey, Tom Republican Yea
Seyarto, Kelly Republican Yea
Valladares, Suzette Martinez Republican Yea

Official roll call →

3rd Reading AB1951 Grayson et al. By Hertzberg

Passed 31 Yea · 3 Nay · 6 Other
Party YeaNayPresentNot Voting
Unaffiliated 19202
Democratic 9103
Republican 3001
Total 31306
% of votes cast 78%8%0%15%
How each member voted (40)
Member Party Vote
Nielsen — Yea
Portantino — Yea
Newman — Yea
Min — Yea
Hueso — Yea
Bradford — Yea
Atkins — Yea
Pan — Yea
Skinner — Yea
Rubio — Yea
Glazer — Yea
Eggman — Yea
Kamlager — Yea
Hertzberg — Yea
Leyva — Yea
Wieckowski — Yea
Dodd — Yea
Melendez — Yea
Roth — Yea
Bates — Nay
Wilk — Nay
Gonzalez — Not Voting
Borgeas — Not Voting
Allen, Benjamin Democratic Not Voting
Archuleta, Bob Democratic Yea
Becker, Josh Democratic Yea
Caballero, Anna M. Democratic Yea
Cortese, Dave Democratic Not Voting
Durazo, Maria Elena Democratic Nay
Hurtado, Melissa Democratic Not Voting
Laird, John Democratic Yea
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Not Voting
Jones, Brian W. Republican Yea
Ochoa Bogh, Rosilicie Republican Yea

Official roll call →

Do pass

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 2000
Unaffiliated 4000
Republican 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Portantino — Yea
Bradford — Yea
Wieckowski — Yea
Bates — Yea
Laird, John Democratic Yea
McGuire, Mike Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

Placed on suspense file

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 5000
Democratic 1000
Republican 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Bates — Yea
Kamlager — Yea
Wieckowski — Yea
Portantino — Yea
Bradford — Yea
Laird, John Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

AB 1951 Grayson Assembly Third Reading

Passed 74 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Democratic 29001
Unaffiliated 36003
Republican 9000
Total 74004
% of votes cast 95%0%0%5%
How each member voted (78)
Member Party Vote
Bloom — Yea
Friedman — Yea
Voepel — Yea
Cooley — Yea
Mathis — Yea
Bigelow — Yea
Rendon — Yea
Mullin — Yea
Holden — Yea
Villapudua — Yea
Jones-Sawyer — Yea
Santiago — Yea
Maienschein — Yea
Rodriguez — Yea
Quirk — Yea
Wood — Yea
Kiley — Yea
Mayes — Yea
Nazarian — Yea
Ting — Yea
Low — Yea
Levine — Yea
Waldron — Yea
Daly — Yea
McCarty — Yea
Medina — Yea
Gray — Yea
Smith — Yea
Cooper — Yea
Cunningham — Not Voting
Salas — Not Voting
O'Donnell — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Luz Rivas — Yea
Mark Stone — Yea
Vince Fong — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Not Voting
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Haney, Matt Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Lee, Alex Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Ward, Christopher M. Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wicks, Buffy Democratic Yea
Wilson, Lori D. Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Davies, Laurie Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea
Seyarto, Kelly Republican Yea
Valladares, Suzette Martinez Republican Yea

Official roll call →

Do pass as amended.

Passed 12 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 5002
Democratic 7000
Republican 0002
Total 12004
% of votes cast 75%0%0%25%
How each member voted (16)
Member Party Vote
Levine — Yea
Holden — Yea
Quirk — Yea
Bigelow — Not Voting
Eduardo Garcia — Yea
Vince Fong — Not Voting
Wendy Carrillo — Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Rivas, Robert Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wilson, Lori D. Democratic Yea
Dahle, Megan Republican Not Voting
Davies, Laurie Republican Not Voting

Official roll call →

Do pass and be re-referred to the Committee on [Appropriations]

Passed 11 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 5000
Democratic 5000
Republican 1000
Total 11000
% of votes cast 100%0%0%0%
How each member voted (11)
Member Party Vote
Gray — Yea
Mullin — Yea
Quirk — Yea
Mayes — Yea
Luz Rivas — Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Nguyen, Stephanie Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Rivas, Robert Democratic Yea
Seyarto, Kelly Republican Yea

Official roll call →

Subjects

taxation
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Frequently asked questions

What does AB 1951 do?
Existing sales and use tax laws impose taxes 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. The Sales and Use Tax Law provides various exemptions from those taxes, including a partial exemption from those taxes, on and after July 1, 2014, and before July 1, 2030, for the gross receipts from the sale of, and the storage, use, or other consumption of, qualified tangible personal property purchased by a qualified person for purchases not exceeding $200,000,000, for use primarily in manufacturing, processing, refining, fabricating, or recycling of tangible personal property, as specified; qualified tangible personal property purchased for use by a qualified person to be used primarily in research and development, as provided; qualified tangible personal property purchased for use by a qualified person to be used primarily to maintain, repair, measure, or test any qualified tangible personal property, as provided; and qualified tangible personal property purchased by a contractor purchasing that property for use in the performance of a construction contract for the qualified person, that will use that property as an integral part of specified processes. Existing law, on and after January 1, 2018, and before July 1, 2030, additionally exempts from those taxes the sale of, and the storage, use, or other consumption of, qualified tangible personal property purchased for use by a qualified person to be used primarily in the generation or production, as defined, or storage and distribution, as defined, of electric power. This bill would, on and after January 1, 2023, and before January 1, 2028, make this a full exemption for purchases not exceeding $200,000,000. The bill would repeal these provisions on January 1, 2028, and would revert to the above-described partial exemption on that date. Existing law requires any bill authorizing a new tax expenditure 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 require the California Department of Tax and Fee Administration to submit a report to the Legislature on the exemption and would provide findings and declarations relating to the goals of the exemption. 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.
Who sponsors AB 1951?
AB 1951 is sponsored by Grayson, Timothy S. (Democratic), Cooley, Cooper, Daly, Gipson, Mike A. (Democratic), Petrie-Norris, Cottie (Democratic), Quirk-Silva, Sharon (Democratic), Ramos, James C. (Democratic), Salas, Villapudua, and Wood.
What is the current status of AB 1951?
This bill died with 2021-2022 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 1951?
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