AB 2641: Sales and use taxes: exclusion: pawnbrokers: transfer of vested property.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

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. Existing law defines “sale” and “purchase” for these purposes and provides certain exclusions from those definitions.

Existing law, until January 1, 2027, excludes the transfer of vested property by a pawnbroker to a person who pledged the property to the pawnbroker as security for a loan, if specified requirements are met, from the definition of “sale” and “purchase,” thus excluding that transfer from imposition of sales and use tax.

This bill would extend the exclusion of the transfer of vested property by a pawnbroker to the person who pledged it, as described above, until January 1, 2032.

Existing law requires a bill authorizing a sales and use tax exemption to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would include that additional information required for the above sales and use tax exclusion.

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.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. July 13, 2026Chaptered by Secretary of State - Chapter 76, Statutes of 2026.
2. July 13, 2026Approved by the Governor.
3. July 2, 2026Enrolled and presented to the Governor at 3 p.m.
4. June 25, 2026In Assembly. Ordered to Engrossing and Enrolling.
5. June 25, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 36. Noes 0. Page 5015.).
6. June 23, 2026Read second time. Ordered to Consent Calendar.
7. June 22, 2026From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar.
8. June 10, 2026From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 5. Noes 0.) (June 10). Re-referred to Com. on APPR.
9. May 27, 2026Referred to Com. on REV. & TAX.
10. May 18, 2026In Senate. Read first time. To Com. on RLS. for assignment.
11. May 18, 2026Read third time. Passed. Ordered to the Senate. (Ayes 72. Noes 0. Page 5137.)
12. May 14, 2026Read second time. Ordered to third reading.