Exempts infant formula from sales and use tax in California from 2027 to 2040.

The bill amends the Revenue and Taxation Code to exempt infant formula from sales and use tax in California from January 1, 2027, until January 1, 2040. Infant formula is defined under the Health and Safety Code. The exemption does not apply to infant formula sold as hot prepared food products, dietary supplements, or adjuncts. The bill also clarifies that the exemption does not change existing law and does not require state reimbursement to local agencies for lost tax revenues.

Exempts infant formula from sales and use tax in California from 2027 to 2040.

The bill amends the Revenue and Taxation Code to exempt infant formula from sales and use tax in California from January 1, 2027, until January 1, 2040. Infant formula is defined under the Health and Safety Code. The exemption does not apply to infant formula sold as hot prepared food products, dietary supplements, or adjuncts. The bill also clarifies that the exemption does not change existing law and does not require state reimbursement to local agencies for lost tax revenues.