SB 1436: Qualified ABLE Program.

The bill aims to make changes to the sales and use tax law, allowing dealers to pay taxes to the department of motor vehicles (DMV) instead of the department of tax and fee administration (CDTFA). This change would apply to vehicles sold at retail on and after January 1, 2021, by licensed dealers, except new motor vehicle dealers. The bill would also reinstate an exemption for dealers who meet specified requirements and notify the CDTFA of their exemption status. The bill further aligns California state tax law with federal law changes made by the "One Big Beautiful Bill Act" for qualified able programs established and maintained by the state. This means that contributions to an able account are now excluded from gross income, and tax law conforms to the exclusions provided under federal income tax law.