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California Bill Seeks Diaper Exemption

  • Feb 27, 2015 | Gail Cole

 California considers exempting diapers from sales tax.

As anyone with children well knows, diapers cost. Cloth or disposable, they’re a necessity until they’re not. The day a child is potty trained is a jubilant day, indeed.

Diapers not only cost in California—they’re taxed. But if Assembly Bill 717 becomes law, they will be exempt from both state and local sales and use tax. The legislation would add Section 6363.9 to the Revenue and Taxation code, which reads, in pertinent part:

“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 and toddlers.”

According to Assemblywoman Lorena Gonzalez, who introduced the measure, California families could save as much as $100 per child in diapers annually. She and other supporters of the measure note that diapers are exempt from sales tax in six states: Massachusetts, Minnesota, New Jersey, New York, Pennsylvania, and Vermont.

If approved, the legislation will “become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act.” The bill has bipartisan support.

Sellers must adjust point-of-sale systems whenever taxable goods become exempt. Automated sales tax Software-as-a-Service helps businesses stay on top of sales tax changes in all states. Learn how it works.

photo credit: P6210016.sm via photopin (license)

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.