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SB-1151 • 2026

Sales and Use Tax Law: exemptions: infant formula.

Sales and Use Tax Law: exemptions: infant formula.

Budget Children Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Cervantes
Last action
2026-04-09
Official status
Set for hearing May 6.
Effective date
Not listed

Plain English Breakdown

The official source does not mention any changes related to voluntary contributions to the State Parks Protection Fund beyond noting it as a nonsubstantive change, which is unclear in context.

Tax Exemption for Infant Formula

The bill creates an exemption from sales and use taxes on infant formula in California starting January 1, 2027, until December 31, 2039.

What This Bill Does

  • Exempts infant formula from state sales and use taxes starting January 1, 2027, for a period of 13 years.
  • Does not require the state to reimburse local agencies for lost tax revenue due to this exemption.

Who It Names or Affects

  • Retailers selling infant formula in California
  • Consumers buying infant formula in California

Terms To Know

Infant Formula
A type of food designed to provide nutrition for infants and young children.
Sales Tax
A tax charged by retailers on the sale of goods or services.

Limits and Unknowns

  • The bill does not specify what happens after December 31, 2039.
  • It is unclear how much revenue will be lost due to this exemption.

Bill History

  1. 2026-04-09 California Legislative Information

    Set for hearing May 6.

  2. 2026-04-08 California Legislative Information

    Re-referred to Com. on REV. & TAX.

  3. 2026-03-25 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  4. 2026-02-26 California Legislative Information

    Referred to Com. on RLS.

  5. 2026-02-19 California Legislative Information

    From printer. May be acted upon on or after March 21.

  6. 2026-02-18 California Legislative Information

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 1151, as amended, Cervantes.
Voluntary tax contribution: State Parks Protection Fund.
Sales and Use Tax Law: exemptions: infant formula.
Existing sales and use tax laws impose taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law provides various exemptions from those taxes.
This bill would, on and after January 1, 2027, and before January 1, 2040, exempt from those taxes the gross receipts from the sale in this state, and the storage, use, or other consumption in this state, of infant formula, as
defined.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws.
Existing law requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions.
This bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse any
local agencies for sales and use tax revenues lost by them pursuant to this bill.
This bill would take effect immediately as a tax levy.
Existing law authorizes an individual to contribute amounts in excess of the individual’s personal income tax liability for the support of specified funds, including the State Parks Protection Fund. Existing law requires, for each taxable year beginning on or after January 1, 2012, the Franchise Tax Board to revise the individual taxpayer return form to allow a taxpayer to designate an amount in excess of tax liability to be deposited to the State Parks Protection Fund. Existing law entitles a taxpayer making a contribution to receive a single state parks day use annual pass from the Department of Parks and Recreation if the price of the pass, as determined by the department, is less than or equal to the amount of the taxpayer’s contribution. Existing law allows a deduction for any contribution amount in excess of the price of the pass received, if any.
This bill would make a nonsubstantive change to these provisions.

Current Bill Text

Read the full stored bill text
Download Bill PDF