Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2021
Sales And Use Tax Law
CHAPTER 4. EXEMPTIONS
Article 1. General Exemptions
6373. Food stamp coupons. (a) There are exempted from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of tangible personal property the gross receipts of which are received in the form of CalFresh benefits acquired by the purchaser pursuant to the federal Food and Nutrition Act of 2008 (Chapter 51 (commencing with Section 2011) of Title 7 of the United States Code), including subsequent amendments thereto.
(b) When the gross receipts from a sale of tangible personal property are received partly in the form of cash and partly in the form of CalFresh benefits, the amount of the CalFresh benefits shall be attributed first to gross receipts which would have been subject to the taxes imposed by this part if payment were not received in the form of CalFresh benefits.
(c) A retailer shall not add to the sale price of tangible personal property any amount designated as sales tax, use tax, or sales tax reimbursement when the sale is exempt pursuant to this section.
(d) In lieu of separately accounting for gross receipts which are exempt pursuant to this section and taking a deduction on sales tax returns for the exact amount of those gross receipts, the board may provide, for the efficient administration of this part, an alternative method that retailers may use to compute the allowable deduction for the total amount of CalFresh benefits redeemed during the period for which the return is filed, provided that method results in a deduction the amount of which is at least equal to 2 percent of the total amount of CalFresh benefits redeemed.
(e) This section is repealed on the first day of the first calendar month immediately following the effective date of any federal act which repeals those provisions which prohibit the state from participating in the federal Supplemental Nutrition Assistance Program if sales taxes are imposed within that state on purchases made with CalFresh benefits.
History—Added by Stats. 1987, Ch. 1103, in effect September 25, 1987, operative October 1, 1987. Stats. 1992, Ch. 902, in effect September 25, 1992, operative January 1, 1993, substituted "the board may … deduction for" for "a retailer may take a deduction on each sales tax return equal to two percent of" and added ", provided that … coupons redeemed" in subdivision (d). Stats. 2011, Ch. 227 (AB 1400), in effect January 1, 2012, substituted "CalFresh benefits" for "food stamp coupons" or "food stamps" throughout the section; substituted "federal Food and Nutrition Act of 2008 (Chapter 51 (commencing with Section 2011) of Title 7 of the United States Code)" for "Food Stamp Act of 1977 (Public Law 95-113)" after "pursuant to the" in subdivision (a); substituted "the" for "any" after "provisions which prohibit" and substituted "federal Supplemental Nutrition Assistance Program" for "food stamp program" after "participating in the" in subdivision (e).