Bill Text: CA ACA21 | 2023-2024 | Regular Session | Introduced
Bill Title: Sales and use tax: candy.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2024-03-14 - From printer. May be heard in committee April 13. [ACA21 Detail]
Download: California-2023-ACA21-Introduced.html
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Constitutional Amendment
No. 21
| Introduced by Assembly Member Jackson |
March 13, 2024 |
A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 34 of Article XIII thereof, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
ACA 21, as introduced, Jackson.
Sales and use tax: candy.
The California Constitution prohibits the state from levying or collecting a sales or use tax on the sale of, or the storage, use, or other consumption in this state of, food products for human consumption, except as provided by statute as of the effective date of that provision. The Personal Income Tax Law allows a young child tax credit against the net tax, as defined, to a qualified taxpayer who has at least one qualifying child, as prescribed. The law defines “qualifying child” to have the same meaning as defined under the federal earned income tax credit, except that the child is younger than 6 years of age as of the last day of the taxable year.
This bill would authorize the state to levy or collect a sales or use tax on the sale of, or the storage, use, or other consumption in this state of, candy and would define “candy” to mean a
preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. The bill would also raise the maximum age of a qualifying child for purposes of the young child tax credit to 18 years of age and would require that any revenues collected pursuant to a sales or use tax levied on the sale of, or on the storage, use, or other consumption in this state of, candy in the state be used only to mitigate the impact on the General Fund of that age increase.
Digest Key
Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
WHEREAS, It is the intent of the Legislature that revenues collected from the taxation of candy shall be used to expand the benefit of California’s Young Child Tax Credit, thereby increasing the monthly financial assistance available to families. Furthermore, these tax revenues may also be directed towards targeted initiatives aimed at eradicating the state’s childhood poverty crisis. California should be doing more to provide increased support for its families, particularly its youngest and most vulnerable members; and
WHEREAS, The ending of the federal expansion of the Child Tax Credit in 2021 resulted in a 143-percent increase in childhood poverty for children zero to 3 years of age, a 166-percent increase for children zero to 5 years of age, and a 121-percent increase for children zero to 12 years of age, in California. This surge in poverty represents a reversal of the significant decline in child poverty witnessed from 2019 to 2021, underscoring the adverse impact of federal policy decisions to end needed support to California’s youngest children; and
WHEREAS, By proposing this constitutional amendment, the Legislature intends to provide the needed addition of additional resources, which will provide consistent support to our youngest population; now, therefore, be it
Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 2023–24 Regular Session commencing on the fifth day of December 2022, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows:
That Section 34 of Article XIII thereof is amended to read:
SEC. 34.
(b) (1) The State of California may levy or collect a sales or use tax on the sale of, or the storage, use, or other consumption in this state of, candy.
(2) As used in this subdivision, “candy” means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces.
(3) (A) Notwithstanding subdivision (c) of Section 17052.1 of the Revenue and Taxation Code, for purposes of the
young child tax credit authorized by Section 17052.1 of the Revenue and Taxation Code the term “qualifying child” has the same meaning as defined under Section 17052 of the Revenue and Taxation Code, except that the child shall be younger than 19 years of age as of the last day of the taxable year.
(B) Any revenues collected pursuant to a sales or use tax levied on the sale of, or on the storage, use, or other consumption in this state of, candy in the state shall be used only to mitigate the impact on the General Fund of subparagraph (A).
