California legislation · 2025-2026 Regular Session
California SB1406: Sales and Use Tax Law: vehicles: shell companies.
Status: Chaptered, September 30, 2026
What the bill says
An act to amend Sections 6247 and 6248 of, and to add Section 6829.5 to, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. taxation, to take effect immediately, tax levy Sales and Use Tax Law: vehicles: shell companies…
From the chaptered text, September 30, 2026:
An act to amend Sections 6247 and 6248 of, and to add Section 6829.5 to, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. taxation, to take effect immediately, tax levy Sales and Use Tax Law: vehicles: shell companies. The Sales and Use Tax Law imposes 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, measured by sales price. Under the Sales and Use Tax Law, there is a presumption that a vehicle, vessel, or aircraft shipped or brought into this state within 12 months from the date of its purchase was acquired for storage, use, or other consumption in this state and is subject to the use tax if any of specified conditions are satisfied, including where the vehicle is purchased by a resident of this state, as defined. Existing law provides that, for purposes of this presumption, a closely held company or limited liability company is considered a resident of this state if 50% or more of the shares or membership interests are held by shareholders or members who are residents of …
Sponsors
- Jerry McNerney (D, SD05) · primary sponsor
- Grayson, Timothy (D, SD09)
Latest actions
- : Chaptered by Secretary of State. Chapter 1036, Statutes of 2026.
- : Approved by the Governor.
- : Enrolled and presented to the Governor at 3 p.m.
- : In Senate. Ordered to engrossing and enrolling.
- : Read third time. Passed. (Ayes 59. Noes 19. Page 6619.) Ordered to the Senate.
- : Read third time. Passed. Ordered to the Senate.
- : Read second time. Ordered to third reading.
- : From committee: Do pass. (Ayes 11. Noes 4.) (August 13).
- : Assembly Rule 63 suspended.
- : August 5 set for first hearing. Placed on suspense file.
Votes
- SB 1406 McNerney Senate Third Reading By Aguiar-Curry (August 26, 2026): 59 yea, 19 nay, passed
- Do pass. (August 13, 2026): 11 yea, 4 nay, passed
- Do pass and be re-referred to the Committee on [Appropriations] (June 29, 2026): 5 yea, 2 nay, passed
- Senate 3rd Reading SB1406 McNerney et al. (May 19, 2026): 31 yea, 8 nay, passed
- Do pass, but first be re-referred to the Committee on [Appropriations] (May 6, 2026): 4 yea, 0 nay, passed
Common questions
- What is SB1406?
- SB1406 is a bill in the California Legislature (2025-2026 Regular Session): Sales and Use Tax Law: vehicles: shell companies.
- What does SB1406 do?
- In its own words: An act to amend Sections 6247 and 6248 of, and to add Section 6829.5 to, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. taxation, to take effect immediately, tax levy Sales and Use Tax Law: vehicles: shell companies…
- What is the status of SB1406?
- Chaptered as of September 30, 2026. Latest action: Chaptered by Secretary of State. Chapter 1036, Statutes of 2026. (September 30, 2026).
- Who sponsored SB1406?
- Jerry McNerney (D, SD05), with 1 co-sponsor.
- Where is the official record for SB1406?
- On the California Legislature website: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB1406
Source: official California record. Tracked by Delilah, AI for legislation across all 50 states and Congress.