Sales and use taxes: exemption: sanitary napkins: tampons: menstrual sponges and menstrual cups.
The enactment of AB9 is expected to have significant implications for state tax law, particularly regarding how sales tax exemptions are applied. The bill modifies pre-existing tax laws by granting a specific exemption for feminine hygiene products, which could serve as a catalyst for broader discussions on tax legislation surrounding health-related products. The local agencies, typically reimbursed by the state for revenue losses from such exemptions, will not receive compensation for the loss of sales tax revenue as stipulated in AB9, as it specifically negates any appropriation for such reimbursements.
Assembly Bill 9 (AB9) introduced by Assembly Member Cristina Garcia, proposes to exempt certain feminine hygiene products, including tampons, sanitary napkins, menstrual sponges, and menstrual cups, from sales and use taxes in California. This legislative measure aims to improve access to essential period products by alleviating the financial burden associated with these necessary items. The bill is set to take effect on January 1, 2018, in alignment with the state’s Revenue and Taxation Code regulations.
Some points of contention surrounding AB9 include concerns about the lack of reimbursement for local governments, which could affect their budgets and financial planning. Critics are particularly focused on the immediate fiscal impacts on local agencies, arguing that the bill could lead to unexpected fiscal shortfalls. Moreover, supporters of the bill advocate for menstrual equity, arguing that the tax on necessary health products unfairly burdens those who menstruate, placing added financial pressure on individuals, particularly low-income groups.