Today's Law As Amended


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AB-31 Sales and use taxes: exemption: menstrual hygiene products.(2019-2020)



As Amends the Law Today


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health product within the state tax laws that one gender must use each month for 40 years of life speaks to the outdated nature of the tax laws.

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, 2024,  the Department of Finance shall estimate the total dollar amount of revenue  revenue, prior to January 1, 2024,  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.
(2) No later than May 15 of each fiscal year, beginning on May 15, 2024, the Department of Finance shall estimate the total dollar amount of revenue, beginning on and after January 1, 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.
SEC. 4.
 Notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any sales and use tax revenues lost by it under this act.
SEC. 5.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.