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Diapers, Tampons Could Be Tax-Free in California Through 2026 (1)

Jan. 27, 2020, 10:59 PM; Updated: Jan. 28, 2020, 2:28 AM

Diapers and menstrual products would be exempt from California sales and use tax through 2026 under bills that passed the state Assembly Monday.

By a 70-0 vote, lawmakers passed A.B. 66 by Assemblywoman Lorena Gonzalez (D) extending an existing diaper tax exemption, and in a 66-0 vote they approved A.B. 31 by Assemblywoman Cristina Garcia (D) extending a menstrual products exemption. Both bills now move to the Senate for consideration in the next few months.

  • Both bills are four-year extensions of tax exemptions on the products that took effect Jan. 1, 2020, and expire in two years.
  • Annual revenue loss is expected to be more than $30 million for the diaper exemption and $20 million a year for the menstrual products exemption.
  • Gov. Gavin Newsom (D) is also proposing to extend the exemptions through 2026 in his budget plan.
(Adds passage of menstrual products bill.)

To contact the reporter on this story: Laura Mahoney in Sacramento, Calif. at lmahoney@bloomberglaw.com

To contact the editors responsible for this story: Jeff Harrington at jharrington@bloombergtax.com; Kathy Larsen at klarsen@bloombergtax.com

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