A bill to allow Tesla customers from outside California to pick up a gleaming EV and waive state sales taxes has died.

Bill sponsor Sen. Bob Wieckowski amended the proposal in favor of a measure to rescue a new housing development in the city of Santa Clara.

The original bill would have allowed Tesla customers from other states to travel to the company's Fremont factory, pick up their vehicle and drive home without paying California sales tax.

The vehicle buyers would still owe taxes in their home states, but would avoid getting hit with California's higher taxes.

Senate Bill 680 was designed to encourage electric vehicle sales and state tourism.But in June, Santa Clara officials requested an urgent bill to modify terms of a property sale between the city housing authority and the state, said Jeff Barbosa, spokesman for the state senator.

The deadline for introducing new bills had passed, and Wieckowski, D-Fremont, decided to amend the Tesla bill as it moved forward in the Assembly, Barbosa said.

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