California Assembly Bill AB1249

California 2023-2024 Regular Session

• Introduced: 2/16/23
• Refer: 3/2/23
• Refer: 4/11/23
• Failed: 2/1/24

Caption

Sales and use taxes: exemption: tax holiday: school supplies.

Impact

The bill intends to specifically relieve the tax burden associated with purchasing school supplies by exempting the gross receipts from sales of these items. For items priced under $100, various supplies will qualify, including binders, notebooks, writing instruments, and electronics like personal computers. However, the bill stipulates that no state reimbursement will be provided to local agencies for any revenue losses incurred due to this exemption, which could lead to concerns regarding local budgets.

Summary

Assembly Bill 1249 aims to provide a sales and use tax exemption for certain school supplies during a designated tax holiday to alleviate the financial burden on families and teachers. The bill authorizes the exemption for a two-day period starting at 12:01 a.m. on the third Saturday of July and ending at 11:59 p.m. on the following day, effective from January 1, 2024, to January 1, 2029. The types of supplies included in the exemption range from basic stationery items to certain electronic equipment under specified price limits.

Contention

Debates regarding AB 1249 may arise over the potential impact on local revenue. Critics could argue that not reimbursing local agencies for lost tax revenue could adversely affect public funding for education and other community services. Supporters, on the other hand, may frame this exemption as a necessary initiative to reduce costs for families preparing for the new school year, potentially increasing consumer spending during the tax holiday period.