Plain English Breakdown
The official text states 'infant car seats, as defined' but the specific definition is not included in the provided excerpts.
Temporary State Sales Tax Exemption for Infant Car Seats
AB-1596 removes state sales and use taxes on infant car seats from January 2027 to December 2031, but local taxes still apply and the state will not pay back lost revenue to cities or counties.
What This Bill Does
- Exempts the sale of infant car seats from state sales and use taxes starting on January 1, 2027.
- Ends this exemption before January 1, 2032.
- Requires the bill to include specific goals, performance indicators, and data collection plans for the tax change.
- States that local cities, counties, and districts may still charge their own sales or use taxes on these seats because the state exemption does not apply locally.
- Prevents the state from paying back any money lost by local agencies due to this exemption.
Who It Names or Affects
- Retailers selling infant car seats in California
- Families purchasing or using infant car seats for personal use
- Local cities, counties, and districts that collect sales taxes
Terms To Know
- Sales and Use Tax Exemption
- A rule that removes the state tax charge on specific items when they are sold or used.
- Tax Reimbursement
- Money paid by the state to local agencies to replace lost tax revenue caused by new laws, which this bill specifically blocks for infant car seats.
Limits and Unknowns
- The official text says 'infant car seats, as defined' but does not provide the specific definition in these excerpts.
- Local taxes on these seats will still apply and may vary by city or county since they are not exempted.