BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1561|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: AB 1561
Author: Cristina Garcia (D) and Chang (R), et al.
Amended: 8/15/16 in Senate
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 5-0, 6/22/16
AYES: Hertzberg, Nguyen, Beall, Hernandez, Pavley
NO VOTE RECORDED: Lara, Moorlach
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
ASSEMBLY FLOOR: 78-0, 6/2/16 - See last page for vote
SUBJECT: Sales and use taxes: exemption: sanitary napkins:
tampons: menstrual sponges and menstrual cups
SOURCE: Author
DIGEST: This bill establishes a temporary sales and use tax
(SUT) exemption for tampons, sanitary napkins, menstrual cups,
and menstrual sponges.
ANALYSIS:
Existing law:
1)Imposes a SUT on the sale, storage, or use of tangible
personal property unless exempted by state law.
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2)Provides that the current state SUT is 7.5%, but beginning
January 1, 2017, the state SUT rate on tangible personal
property will be 7.25%
3)Allows cities and counties to increase the SUT rate up to 2%
as a transactions and use tax for either specific or general
purposes with voter approval as required by the California
Constitution.
This bill:
1)Establishes a temporary SUT exemption for tampons, sanitary
napkins, menstrual sponges, and menstrual cups.
2)Provides that the state shall not reimburse any local agency
for SUT revenues lost as a result of this exemption.
3)Provides that the bill shall remain in effect until January 1,
2022.
Background
Current state provides sales and use exemptions for goods that
are considered "necessities of life." The exemption includes
most food items, prescription medication, and gas, electricity
and water utilities sold to consumers through mains, lines, and
pipes. Tampons, sanitary napkins, menstrual cups, and menstrual
sponges are medical necessities for women's health, but are
subject to sales and use tax. The author of this bill argues
that other health related necessities of life are exempt from
SUT, and as a necessity of life for women, tampons, sanitary
napkins, menstrual sponges, and menstrual cups should also be
exempt from sales and use tax.
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FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee:
The Board of Equalization (BOE) indicates that this bill would
result in a 2016-17 state and local revenue loss of $20
million, $10 million of which would be General Fund.
The BOE would incur absorbable implementation costs.
SUPPORT: (Verified8/12/16)
Act for Women and Girls
American Academy of Pediatrics
Asian Pacific Islander American Public Affairs Association
Bayer
Black Women for Wellness
California Asian Pacific Chamber of Commerce
California Grocers Association
California Latinas for Reproductive Justice
California Primary Care Association
California Retailers Association
California State Board of Equalization
California Women's Law Center
California Young Democrats
City of Glendale
City of West Hollywood
Community Action Fund of Planned Parenthood of Orange and San
Bernardino Counties
Conscious Period
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Equal Rights Advocates
Forward Together
Hispanics Organized for Political Equality
Junior League of Long Beach
Junior Leagues of California State Public Affairs Committee
NARAL Pro-Choice California
National Association of Social Workers-California Chapter
National Center for Youth Law
National Council of Jewish Women
Physicians for Reproductive Health
Planned Parenthood Action Fund of Orange and San Bernardino
Counties
Planned Parenthood Action Fund of Santa Barbara, Ventura, and
San Luis Obispo Counties
Planned Parenthood Action Fund of the Pacific Southwest
Planned Parenthood Advocacy Project Los Angeles County
Planned Parenthood Advocates Pasadena and San Gabriel Valley
Planned Parenthood Affiliates of California
Planned Parenthood Mar Monte
Planned Parenthood Northern California Action Fund
State Board of Equalization Member Fiona Ma
State Board of Equalization Member George Runner
Target
Unite for Reproductive and Gender Equity
Walmart
Women Lawyers of Sacramento
OPPOSITION: (Verified8/12/16)
California State Association of Counties
League of California Cities
ARGUMENTS IN SUPPORT: According to the author, "AB 1561 is a
bipartisan effort to make menstrual products exempt from the
sales and use tax at both the state and local level. California
women pay over 20 million dollars annually for taxing tampons
and sanitary napkins, which are essential health items for
women. As a state we should not be taxing women for being born
women. The tax is especially unjust for women who are
low-income or homeless who struggle to pay for these basic
necessities each month for the majority of their adult life.
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Menstrual products need to be more accessible and eliminating
the tax on tampons and sanitary napkins is an important first
step in making them more affordable. California's tax code
exempts health items like walkers, medical identification tags,
and prescription medication, including Viagra. Tampons and
sanitary napkins are not exempt even though women do not have
the choice to ignore their periods and are far from being
luxuries items. When these items are labeled as "feminine
hygiene" products, it makes people forget that the FDA regulates
both products as medical devices. There is no equivalent health
product that is used only by one gender on a monthly basis for
40 years of life. Across the world, countries as well as select
states in the US are organizing to repeal the sales tax on
feminine hygiene products. California should continue to be a
leader by addressing the gender inequality in our tax code and
exempt menstrual products."
ARGUMENTS IN OPPOSITION: Opponents argue that SUT exemptions
continue to erode the already shrinking local sales tax base.
Cities and counties continue to struggle financially, and SUT
exemptions only further exacerbate the issue.
ASSEMBLY FLOOR: 78-0, 6/2/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,
Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,
Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth
Gaines, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez,
Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger
Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,
Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes,
McCarty, Medina, Melendez, Mullin, Nazarian, O'Donnell, Olsen,
Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Gallagher, Obernolte
Prepared by:Myriam Bouaziz / GOV. & F. / (916) 651-4119
8/15/16 20:10:05
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