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.