AB-2192 • 2026

Sales and use taxes: farm equipment and machinery.

Agriculture Budget Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Jeff Gonzalez
Last action: 2026-04-21
Official status: Re-referred to Com. on REV. & TAX.
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide specific details on performance indicators or data collection requirements for the tax expenditure.

Farm Equipment Tax Exemption

AB-2192 removes the exclusion of farm equipment and machinery from local sales and use taxes, allowing these items to be exempt in both state and local tax laws until January 1, 2032.

What This Bill Does

Removes a rule that stops local governments from applying the exemption for farm equipment and machinery to their own sales and use taxes.
Requires the state to pay back any money lost by counties and cities because of this change in tax rules.

Who It Names or Affects

Farmers who buy farm equipment and machinery
Local governments that collect sales and use taxes

Terms To Know

Tax Exemption: A rule that allows certain items or services to be bought without paying a tax on them.
General Fund: The main account where the state keeps money for different programs and projects.

Limits and Unknowns

It is not clear how much money will be lost by counties and cities because of this change.
This bill only applies until January 1, 2032, after which it may need to be renewed or changed.

Bill History

2026-04-21 California Legislative Information
Re-referred to Com. on REV. & TAX.
2026-04-20 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2026-04-06 California Legislative Information
In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
2026-03-19 California Legislative Information
Re-referred to Com. on REV. & TAX.
2026-03-18 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2026-03-09 California Legislative Information
Referred to Com. on REV. & TAX.
2026-02-20 California Legislative Information
From printer. May be heard in committee March 22.
2026-02-19 California Legislative Information
Read first time. To print.

Official Summary Text

AB 2192, as amended, Jeff Gonzalez.
Sales and use taxes: farm equipment and machinery.
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 of, 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, including an exemption for the sale of, or the storage, use, or consumption of, farm equipment and machinery, and the parts thereof, purchased for use by a qualified person to be used primarily in producing and harvesting agricultural products.
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.
Existing law excludes the tax exemption described above from being incorporated into certain local taxes pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law.
This bill
would
would, until January 1, 2032,
delete that provision.
Existing law requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions.
This bill would make an appropriation from the General Fund to the Controller to make the reimbursements to counties and cities.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific purposes 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.
This bill would take effect immediately as a tax levy.

Current Bill Text

Read the full stored bill text

Download Bill PDF