Senate BillFailedRevenue and Taxation
SB 696: Sales and Use Tax Law: exemptions: firefighting equipment.
What SB 696 does, verified February 3, 2026
This bill exempts firefighting apparatus, equipment, or specialized vehicles purchased by fire departments from state sales and use taxes. The exemption applies from July 1, 2026, to January 1, 2031. The exemption does not apply to local sales and use taxes or transactions and use taxes. Additionally, the exemption does not affect state sales and use tax rates imposed or dedicated for local government funding. The bill takes effect immediately as a tax levy.
Bill journey
✓IntroducedComplete
2In CommitteeCurrent
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: Returned to Secretary of Senate pursuant to Joint Rule 56. (2026-02-02)Alert me
Author and sponsors
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| Feb. 02, 2026 | Returned to Secretary of Senate pursuant to Joint Rule 56. |
| May. 23, 2025 | May 23 hearing: Held in committee and under submission. |
| May. 20, 2025 | Set for hearing May 23. |
| May. 19, 2025 | May 19 hearing: Placed on APPR. suspense file. |
| May. 15, 2025 | Set for hearing May 19. |
Latest bill textAmended version, May 8, 2025 · 1,122 words
| Amended IN Senate May 08, 2025 |
| Amended IN Senate May 06, 2025 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Senate Bill
No. 696
| Introduced by Senator Alvarado-Gil |
February 21, 2025 |
An act to add and repeal Section 6356.8 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 696, as amended, Alvarado-Gil. Sales and Use Tax Law: exemptions: firefighting equipment.
Existing state sales and use tax laws impose 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. The Sales and Use Tax Law provides various exemptions from those taxes.
This bill, on and after July 1, 2026, and before January 1, 2031, would exempt from those taxes the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, firefighting apparatus, equipment, or specialized vehicles, as defined, purchased by a fire department, including an all-volunteer fire department, as defined, or a fire protection district.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill also would include additional information required for any bill authorizing a new tax expenditure.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws.
This bill would provide that the exemption created by the bill does not apply to local sales and use taxes or transactions and use taxes.
Existing law imposes or dedicates certain state sales and use tax rates for local funding, including through the Local Revenue Fund 2011.
This bill would provide that the exemption created by the bill does not apply to those state sales and use tax rates imposed or dedicated for local government funding, including those rates for which revenues are deposited into the Local Revenue Fund 2011.
This bill would take effect immediately as a tax levy.
The people of the State of California do enact as follows:
SECTION 1.
Section 6356.8 is added to the Revenue and Taxation Code, to read:6356.8.
(a) On and after July 1, 2026, and before January 1, 2031, there are exempted from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, firefighting apparatus, equipment, or specialized vehicles purchased by a fire department, including an all-volunteer fire department, or a fire protection district.(b) For purposes of this section the following definitions apply:
(1) “All-volunteer fire department” has the same meaning as that term is defined in Section 6018.10.
(2) “Firefighting apparatus, equipment, or specialized vehicles” includes, but is not limited to, all of the following:
(A) Electronic and communication equipment, including radios, cellular telephones, laptops, and computers.
(B) Specialized vehicles, including command staff vehicles, vessels such as boats and swift water rafts, ladder trucks, fire engines, and trailers.
(C) Personal protective equipment, including self-contained breathing apparatuses, safety boots, and turnouts.
(D) Equipment for vehicles, including ladders, hoses, axes, defibrillators, medical supplies, rope rescue equipment, auto extrication equipment, chainsaws, ventilation fans, wildland firefighting tools, portable water tanks, portable pumps, and thermal imaging cameras.
(E) Tools, parts, and supplies used for maintaining the items listed above.
(3) (A) “Fire department” means any of the following:
(i) A fire department of a city, county, city and county, district, or other public or municipal corporation or political subdivision.
(ii)The Department of Forestry and Fire Protection.
(iii)
(ii)
A county forestry or firefighting department or unit.(B) “Fire department” does not include any fire department of the University of California, the California State University, or any other educational institution. the following:
(i) A fire department of the University of California, the California State University, or any other educational institution.
(ii) The Department of Forestry and Fire Protection.
(c) (1) Notwithstanding any provision of the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by this section does not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws.
(2) Notwithstanding subdivision (a), the exemption established by this section shall not apply with respect to any tax levied pursuant to Section 6051.2 or 6201.2, pursuant to Section 35 of Article XIII of the California Constitution, or any tax levied pursuant to Section 6051 or 6201 that is deposited in the State Treasury to the credit of the Local Revenue Fund 2011 pursuant to Section 6051.15 or 6201.15.
(d) An exemption shall not be allowed under this section unless the purchaser furnishes the retailer with an exemption certificate, completed in accordance with any instructions or regulations as the department may prescribe, and the retailer retains the exemption certificate in its records and furnishes it to the department upon request.
(e) (1) For the purposes of complying with Section 41, the Legislature finds and declares both of the following:
(A) The specific goal that the exemption will achieve is to reduce the financial burden placed on local fire departments, thereby allowing for more efficient use of resources by those departments.
(B) Detailed performance indicators for the Legislature to use to measure whether the exemption meets the goal described in subparagraph (A) are the following:
(i) The number of taxpayers exempting purchases from tax pursuant to this section.
(ii) The total dollar value of sales exempted from tax pursuant to this section.
(2) On or before April 1, 2028, and annually thereafter, the California Department of Tax and Fee Administration shall analyze the performance indicators in subparagraph (B) of paragraph (1) and shall submit a report of its findings to the Legislature in compliance with Section 9795 of the Government Code.
(f) This section shall remain operative only until January 1, 2031, and as of that date is repealed.
SEC. 2.
This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.Text of SB 696 as amended, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions