Taxation.

Here's a clear, substantive summary of SB 132's key provisions and impacts:

The California Senate Committee on Budget and Fiscal Review proposes comprehensive changes to state tax law, introducing new exclusions from gross income, expanding tax credits, and modifying local taxation authority. The legislation addresses multiple sectors of the economy while providing targeted relief for specific populations.

The bill restructures vehicle sales tax reporting by allowing dealer applications to the Department of Motor Vehicles to serve as filed returns with the California Department of Tax and Fee Administration. Dealers selling over 1,000 vehicles annually may qualify for exemptions from DMV payment requirements if their accounts remain in good standing.

For military families and survivors, the measure excludes up to $20,000 in federal retirement pay and Department of Defense Survivor Benefit Plan payments from gross income for tax years 2025-2029. The bill also excludes settlement payments related to California wildfires and the Chiquita Canyon landfill event from gross income calculations and means-tested program eligibility determinations.

The legislation significantly expands the motion picture tax credit program, increasing the annual allocation to $750 million and modifying credit percentages based on production types. Productions must meet specific California spending requirements and submit diversity workplans to qualify for full credit amounts.

For local governments, the bill clarifies taxation authority for Sonoma County, its cities, and transportation authority, requiring voter approval by January 2026 for new local sales taxes. The measure also establishes the California Firearm Excise Tax Law, expanding tax obligations for out-of-state retailers conducting firearm sales in California.

The legislation includes provisions for small business tax relief through 2031, allowing qualified entities to elect an alternative tax calculation method. These changes aim to maintain California's competitive position while providing targeted economic support across multiple sectors.