CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

99

TAX LEVY

Introduced by Assembly Member Davies

(Coauthors: Assembly Members Alanis, Castillo, Hoover, and Wallis)

January 16, 2026

An act to add and repeal Section 6370.7 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing state sales and use tax laws impose a tax 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, 2032, exempt from those taxes the gross receipts from the sale of, and the storage, use, or other consumption of, infant car seats, as defined.

Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would include additional information required for any bill authorizing a new tax expenditure.

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.

This bill would provide that the exemption created by the bill does not apply to local sales and use taxes or transactions and use taxes.

Existing law imposes or dedicates certain state sales and use tax rates for local funding, including through the Local Revenue Fund 2011. 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.

The people of the State of California do enact as follows:

SECTION 1.

Section 6370.7 is added to the Revenue and Taxation Code, to read:

6370.7.

(a) On and after January 1, 2027, and before January 1, 2032, there are exempted from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, infant car seats.

(b) For purposes of this section, “infant car seats” means a child restraint device or booster seat that meets the national highway traffic safety administration standard for child restraint systems under Section 571.213 of Title 49 of the Code of Federal Regulations.

(c) Notwithstanding any provision of the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by this section does not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws.

(d) For the purposes of complying with Section 41, the Legislature finds and declares all of the following:

(1) The specific goal, purpose, and objective that the exemption will achieve is to ease the high cost of living endured by California families and enhance the affordability of child safety products.

(2) Detailed performance indicators measuring whether the exemption meets the goal, purpose, and objective described in paragraph (1) are the following:

(A) The number of taxpayers utilizing the exemption of the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, infant car seats.

(B) The total dollar amount exempted from gross receipts under this section.

(3) On or before March 1, 2027, and annually thereafter, the California Department of Tax and Fee Administration shall analyze the performance indicators in paragraph (2) to the extent information is available, and shall report its findings, in compliance with Section 9795 of the Government Code, to the Legislature.

(e) This section shall remain operative only until January 1, 2032, and as of that date is repealed.

SEC. 2.

Notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any sales and use tax revenues lost by it under this act.

SEC. 3.

This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.