SB 1436: Qualified ABLE Program.

Official summary

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

(1)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 generally provides that the taxes are due and payable to the California Department of Tax and Fee Administration (CDTFA) quarterly on or before the last day of the month next succeeding each quarterly period and requires, for purposes of sales tax, a return to be filed by a seller that contains, among other information, the gross receipts of the seller during the preceding reporting period.

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, with respect to specified vehicles sold at retail on and after January 1, 2021, by a licensed dealer, except a new motor vehicle dealer, requires the dealer to pay the applicable sales tax, or use tax pursuant to the Transactions and Use Tax Law, to the Department of Motor Vehicles (DMV) acting for and on behalf of CDTFA within 30 days from the date of the sale. Existing law authorizes the CDTFA to exempt a licensed dealer from the requirement to pay the applicable taxes to the DMV if specified requirements are met, and authorizes the CDTFA to revoke that exemption if it notifies the licensed dealer of the failure to satisfy those requirements, as provided.

This bill would authorize the CDTFA to reinstate the above-described exemption where specified requirements are met, and would require the CDTFA to notify the licensed dealer that the exemption is reinstated, as provided. The bill would also make nonsubstantive changes to the exemption provisions.

(2)Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified.

Existing law establishes the Qualified ABLE Program, administered by the California ABLE Act Board, in this state for purposes of implementing the federal ABLE Act. That law, among other things, authorizes the contributions to an ABLE account during the taxable year if specified requirements are met.

Sponsors

“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. September 27, 2026Chaptered by Secretary of State. Chapter 714, Statutes of 2026.
2. September 27, 2026Chaptered by Secretary of State. Chapter 714, Statutes of 2026.
3. September 27, 2026Approved by the Governor.
4. September 27, 2026Approved by the Governor.
5. September 4, 2026Enrolled and presented to the Governor at 2 p.m.
6. September 4, 2026Enrolled and presented to the Governor at 2 p.m.
7. August 27, 2026Assembly amendments concurred in. (Ayes 40. Noes 0. Page 5988.) Ordered to engrossing and enrolling.
8. August 27, 2026Assembly amendments concurred in. (Ayes 39. Noes 0.) Ordered to engrossing and enrolling.
9. August 26, 2026Ordered to special consent calendar.
10. August 26, 2026Ordered to special consent calendar.
11. August 24, 2026In Senate. Concurrence in Assembly amendments pending.
12. August 24, 2026In Senate. Concurrence in Assembly amendments pending.