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Business Taxes Law Guide – Revision 2021
 

Sales And Use Tax Law

CHAPTER 4. EXEMPTIONS

Article 1. General Exemptions

Section 6363.9


6363.9. Children’s diapers. (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, diapers designed, manufactured, processed, fabricated, or packaged for use by infants, toddlers, and children.

(b) This section shall become inoperative on July 1, 2023.

History—Added by Stats. 2019, Ch. 34 (SB 92), effective June 27, 2019. Amended by stats. 2020, Ch. 8 (AB 85), in effect June 29, 2020, and replaced the inoperative date of "January 1, 2022" with "July 1, 2023."

Note.—Section 11 of Stats. 2019, Ch. 34 (SB 92) specifies:

(a) No later than May 15 of each fiscal year, beginning on May 15, 2020, the Department of Finance shall estimate the total dollar amount of revenue for the current fiscal year exempted under Sections 6363.9 and 6363.10 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.

Note.—Section 12 of Stats. 2019, Ch. 34 (SB 92) specifies:

(a) It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to this act.

(b) With respect to Section 6363.9 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares the following:

(1) The specific goals, purposes, and objectives of this act are to promote public health by increasing the affordability of, and expanding access to, diapers.

(2) (A) To measure the goals set forth in paragraph (1), the Legislative Analyst’s Office shall review the effectiveness of the tax exemption and may request information from the California Department of Tax and Fee Administration and any other relevant state government entity.

(B) On or before January 1, 2021, the Legislative Analyst’s Office shall submit a report, in compliance with Section 9795 of the Government Code, of the review completed pursuant to subparagraph (A) to the Assembly Committee on Revenue and Taxation and to the Senate Governance and Finance Committee. The report shall include, but is not limited to, both of the following:

(i) A recommendation on whether the exemption should be modified, extended, or allowed to become inoperative.

(ii) An assessment on whether more targeted approaches to providing families in need with adequate access to diapers are available.

(c) With respect to Section 6363.10 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares the following:

(1) The specific goals, purposes, and objectives of this act are to promote public health by increasing the affordability of, and expanding access to, menstrual hygiene products.

(2) (A) To measure the goals set forth in paragraph (1), the Legislative Analyst’s Office shall review the effectiveness of the tax exemption and may request information from the California Department of Tax and Fee Administration and any other relevant state government entity.

(B) On or before January 1, 2021, the Legislative Analyst’s Office shall submit a report, in compliance with Section 9795 of the Government Code, of the review completed pursuant to subparagraph (A) to the Assembly Committee on Revenue and Taxation and to the Senate Governance and Finance Committee. The report shall include, but is not limited to, both of the following:

(i) A recommendation on whether the exemption should be modified, extended, or allowed to become inoperative.

(ii) An assessment on whether more targeted approaches to providing individuals in need with adequate access to menstrual hygiene products are available.