California AB2522 exempts over-the-counter medications from sales and use tax to achieve tax parity with prescription medications.

California AB2522 adds Section 6369.3 to the Revenue and Taxation Code, exempting over-the-counter medications from sales and use tax. This exemption aims to create tax parity between prescription and over-the-counter medications. The exemption does not apply to taxes levied by counties, cities, or districts under the Bradley-Burns Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law. The Department of Tax and Fee Administration must report annually on the number of transactions exempt and the total dollar value of taxes forgone.

California AB2522 exempts over-the-counter medications from sales and use tax to achieve tax parity with prescription medications.

California AB2522 adds Section 6369.3 to the Revenue and Taxation Code, exempting over-the-counter medications from sales and use tax. This exemption aims to create tax parity between prescription and over-the-counter medications. The exemption does not apply to taxes levied by counties, cities, or districts under the Bradley-Burns Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law. The Department of Tax and Fee Administration must report annually on the number of transactions exempt and the total dollar value of taxes forgone.