Sales and Use Tax Law: exemptions: firefighting equipment.

Senator Alvarado-Gil's proposal would exempt fire departments and fire protection districts from state sales and use taxes on purchases of firefighting equipment and vehicles from July 2026 through December 2030. The exemption covers electronic communications equipment, specialized vehicles like fire engines and ladder trucks, personal protective gear, and various firefighting tools and supplies.

The tax relief applies specifically to municipal fire departments and county firefighting units, excluding educational institution fire departments and the state Department of Forestry and Fire Protection. While the measure creates a state-level exemption, it maintains existing local sales taxes and dedicated state tax rates that fund local government programs. Purchasers must provide retailers with exemption certificates, which retailers must retain for verification by tax authorities.

To track the exemption's use, the California Department of Tax and Fee Administration will report annually to the Legislature beginning in 2028 on two metrics: the number of departments utilizing the exemption and the total value of exempt sales. The provision automatically expires on January 1, 2031.