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Bill would clarify fuel tax exemption to include county-run transit systems
Summary
Sen. Nilo presented SB 359 to explicitly extend existing sales-and-use tax exemptions for transit fuels to county-run transit services; committee referred the bill to its suspense file after testimony from county and transit representatives.
Sen. Sandra Nilo asked the Assembly Committee on Revenue and Taxation to support SB 359, a bill that would make clear that existing sales-and-use tax exemptions for diesel and compressed natural gas used by public transit operators apply to counties that directly operate transit services.
The bill matters because, Nilo said, ambiguity in current law has led some counties that run transit through county departments (rather than independent transit districts) to face unexpected tax assessments on transit fuel. “These counties have never budgeted for…
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