Governor Newsom Signs Assemblymember Michelle Rodriguez’s AB 2641 to Protect Consumers from Double Taxation

SACRAMENTO, CA - Governor Gavin Newsom has signed Assembly Bill 2641, authored by Assemblymember Michelle Rodriguez (D-Ontario), extending a sales and use tax exclusion for certain pawn transactions and protecting Californians from being taxed twice when repurchasing their own property from a pawnbroker.

AB 2641 extends the existing tax exclusion for qualifying transactions involving property that has vested with a pawnbroker. Without the extension, the current exemption was scheduled to sunset in 2027.

"Californians who turn to pawnbrokers are often doing so during moments of financial hardship, and they should not be hit with an additional tax when working to recover their own property," said Assemblymember Rodriguez. "AB 2641 provides a commonsense solution that protects consumers from double taxation and ensures this important relief remains in place. I am grateful to Governor Newsom for signing this bill and supporting sensible protections for consumers across our state."

Pawn transactions can provide consumers with access to short-term funds by allowing them to use personal property as collateral. AB 2641 helps ensure that, in qualifying circumstances, consumers are not required to pay sales tax again when repurchasing property they previously owned.

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