Advocacy

California Advances Manufacturing Equipment Sales Tax Exemption Legislation

By SEMA Washington, D.C., Staff

The California Senate Committee on Governance and Finance unanimously passed SEMA-supported legislation (AB 1951) that would provide a full sales and use tax exemption for the purchase of manufacturing and research and development (R&D) equipment not exceeding $200 million. The bill currently awaits consideration in the Senate Appropriations Committee. SEMA members are encouraged to register their support for the bill by clicking here.

If enacted, the exemption would change the current, narrowly applied exemption, and focuses on improving cost competitiveness to spur investment in California. Accounting for both local and state taxes, California’s ranks among the highest tax rates in the country.

AB 1951 is authored by Assembly Member Tim Grayson (D-Concord). Asm. Grayson is a member of the SEMA State Automotive Enthusiast Leadership Caucus and was the 2019 winner of SEMA’s Stephen B. McDonald Legislator of the Year award. In addition to being a lawmaker, Assembly Member Grayson, along with his wife Tammy, is also an enthusiast. Included in the Grayson’s collection are two classic Ford Mustangs.

For more information, please contact Christian Robinson at christianr@sema.org.