California exempts public agencies from state sales taxes on zero-emission transit buses

California has exempted public agencies from state sales taxes on the purchase of zero-emission transit buses through Jan. 1, 2024.

Supporters of the bill noted that California is one of the few states that assess sales taxes on public transit agencies.

The California Transit Association also supported the bill. “Assuming average costs of $775,000 for a battery-electric bus and $1,235,000 for a hydrogen fuel cell bus, this bill would save transit agencies $35,000 and $55,575 per bus for these technologies, respectively. These costs savings would help transit agencies maintain quality service as they work to improve air quality.”

The law does not exempt the agencies from sales taxes paid to counties, cities or other taxing district.


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