Sales and Use Tax Law: exemptions: infant formula.

Budget 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: 2026-05-26
Official status: Referred to Com. on REV. & TAX.
Effective date: Not listed

Plain English Breakdown

The official source does not provide a specific summary or text that confirms 'food products' includes infant formula.

Sales Tax Exemption for Infant Formula

The bill removes sales and use taxes on infant formula in California from January 1, 2027 to December 31, 2039.

What This Bill Does

Exempts infant formula from state sales and use taxes starting January 1, 2027 until December 31, 2039.

Who It Names or Affects

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

Terms To Know

Sales and Use Tax Law: The law that sets rules for taxing the sale, storage, use, or consumption of tangible personal property.
Infant Formula: A type of food product designed to provide nutrition for infants who are not being breastfed.

Limits and Unknowns

The bill does not specify what happens after December 31, 2039.
Local agencies will lose revenue from sales taxes on infant formula without state reimbursement.

Bill History

2026-05-26 California Legislative Information
Referred to Com. on REV. & TAX.
2026-05-14 California Legislative Information
In Assembly. Read first time. Held at Desk.
2026-05-14 California Legislative Information
Read third time. Passed. (Ayes 35. Noes 0.) Ordered to the Assembly.
2026-05-12 California Legislative Information
Read second time. Ordered to consent calendar.
2026-05-11 California Legislative Information
From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar.
2026-05-07 California Legislative Information
Set for hearing May 11.
2026-05-06 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 5. Noes 0.) (May 6). Re-referred to Com. on APPR.
2026-04-29 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
2026-04-09 California Legislative Information
Set for hearing May 6.
2026-04-08 California Legislative Information
Re-referred to Com. on REV. & TAX.
2026-03-25 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
2026-02-26 California Legislative Information
Referred to Com. on RLS.
2026-02-19 California Legislative Information
From printer. May be acted upon on or after March 21.
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.
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.
taxes, including an exemption for the gross receipts from the sale of, and the storage, use, or other consumption in this state of, food products for human consumption, as specified.
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.
would specify that “food products” includes infant formula.
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.

Current Bill Text

Read the full stored bill text

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