Bill Text: CA AB31 | 2019-2020 | Regular Session | Amended
Bill Title: Sales and use taxes: exemption: menstrual hygiene products.
Spectrum: Moderate Partisan Bill (Democrat 41-6)
Status: (Engrossed - Dead) 2020-07-23 - From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on GOV. & F. [AB31 Detail]
Download: California-2019-AB31-Amended.html
|
Amended
IN
Senate
July 23, 2020 |
|
Amended
IN
Assembly
January 23, 2020 |
|
Amended
IN
Assembly
April 04, 2019 |
CALIFORNIA LEGISLATURE—
2019–2020 REGULAR SESSION
Assembly Bill
No. 31
| Introduced by Assembly Members Cristina Garcia, Bonta, Gonzalez, and Mathis (Principal coauthors: Senators Chang and Glazer) (Coauthors: Assembly Members Arambula, Bauer-Kahan, Berman, Bloom, Boerner Horvath, Carrillo, Cervantes, Chen, Chu, Cunningham, Diep, Eggman, Friedman, Eduardo Garcia, Gipson, Kalra, Kamlager, Levine, Limón, Low, McCarty, O’Donnell, Petrie-Norris, Quirk, Quirk-Silva, Reyes, Rodriguez, Blanca Rubio, Santiago, and Wicks) (Coauthors: Senators Beall, Dodd, Hill, Jackson, McGuire, Mitchell, Skinner, Stern, Wieckowski, Wiener, and Wilk) |
December 03, 2018 |
An act to amend add Section 6363.10 of 6363.11 to the Revenue and Taxation Code, and to amend Section 11 of Chapter 34 of the Statutes of 2019, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 31, as amended, Cristina Garcia.
Sales and use taxes: exemption: menstrual hygiene products.
Existing 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. Those laws provide various exemptions from those taxes, including, until January 1, 2022, July 1, 2023, an exemption for the sale of, or the storage, use, or other consumption of, menstrual hygiene products, defined as tampons, specified sanitary napkins, menstrual sponges, and menstrual cups.
Existing law requires the Department
of Finance, beginning on May 15, 2020, to estimate the total dollar amount of revenue that would have been credited to the Local Revenue Fund 2011 if not otherwise exempted under the sales and use tax exemption for menstrual hygiene products, products and requires the Controller to transfer that amount from the General Fund to the Local Revenue Fund 2011, a continuously appropriated fund, no later than June 30 of each fiscal year.
This bill would extend the establish a similar exemption for the sale of, or the storage, use, or other consumption of, menstrual hygiene products until January 1, 2027.
beginning July 1, 2023, and would define menstrual hygiene products to additionally include menstrual underwear. The bill would provide that the Department of Finance is required to calculate, and the Controller is required to transfer, the total dollar amount of revenue prior to January 1, 2022, 2024, that would have been credited to the Local Revenue Fund 2011 if not otherwise exempted under the sales and use tax with respect to menstrual hygiene products, as specified.
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 requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions.
This bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse any local agencies for sales and use tax revenues lost by them pursuant to this bill.
This bill would take effect immediately as a tax levy.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares all of the following:(a) Menstrual products, including tampons, pads, and menstrual cups, are the only gender-specific items in California’s tax laws.
(b) Menstrual products are not luxuries, and, in fact, are necessary health products for menstruating women to participate in society.
(c) The goal of exempting tampons, pads, and menstrual cups from the sales and use tax laws is to bring gender equity to California’s tax laws.
(d) Each year, California women pay over $20 million in taxes on menstrual products. That money, paid as taxes, belongs in the pockets of California women.
(e) The sales and use tax laws exempt items that are deemed “necessities of life,” such as food and medicine.
(f) The fact that there are no other examples of an essential health product within the state tax laws that one gender must use each month for 40 years of life speaks to the outdated nature of the tax laws.
(a)On and after January 1, 2020, there are exempted from the taxes imposed by this part the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, menstrual hygiene products.
(b)For purposes of this section, “menstrual hygiene products” shall only include the following:
(1)Tampons.
(2)Sanitary napkins primarily designed and labeled for menstrual hygiene use.
(3)Menstrual sponges.
(4)Menstrual cups.
(c)This section shall become inoperative on January 1, 2027.
SEC. 2.
Section 6363.11 is added to the Revenue and Taxation Code, to read:6363.11.
(a) On and after July 1, 2023, there are exempted from the taxes imposed by this part the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, menstrual hygiene products.(b) For purposes of this section, “menstrual hygiene products” shall include only the following:
(1) Tampons.
(2) Sanitary napkins primarily designed and labeled for menstrual hygiene use.
(3) Menstrual sponges.
(4) Menstrual cups.
(5) Menstrual underwear.
(c) This section shall become operative on July 1, 2023.
(d) This section shall become inoperative on July 1, 2028.
SEC. 3.
Section 11 of Chapter 34 of the Statutes of 2019 is amended to read:SEC. 11.
(a) (1) No later than May 15 of each fiscal year, beginning on May 15, 2020, and until May 15,(2) No later than May 15 of each fiscal year, beginning on May 15, 2022, 2024, the Department of Finance shall estimate the total dollar amount of revenue, beginning on and after January 1, 2022, 2024, for the current fiscal year exempted under Section 6363.9 of the Revenue and Taxation Code from any tax levied pursuant to Section 6051
or 6201 of the Revenue and Taxation Code that would have otherwise been deposited in the State Treasury to the credit of the Local Revenue Fund 2011 pursuant to Section 6051.15 or 6201.15 of the Revenue and Taxation Code.
(b) For the purposes of complying with subdivision (d) of Section 36 of Article XIII of the California Constitution, no later than June 30 of each fiscal year, beginning on June 30, 2020, the Controller shall transfer the total dollar amount estimated in subdivision (a) from the General Fund to the Local Revenue Fund 2011.
