California Sales Tax Fairness Act
Stop taxing diapers, tampons, medications, and the rotisserie chicken you're feeding your kids for dinner.
California has some of the highest sales tax rates in America — over 10% in many cities when you stack state, county, city, and special district taxes together. And sales taxes are regressive: the less you earn, the bigger the bite. A family making $40,000 a year pays the same tax on diapers, baby formula, and cold medicine as a family making $400,000. This act exempts essential goods from sales tax, creates a refundable credit for low-income families, protects local government revenue during the transition, and makes the total tax rate visible at every checkout so you actually know what you're paying.
Necessities Aren't Luxuries — Stop Taxing Them Like They Are
Most states already exempt menstrual products, diapers, baby formula, and over-the-counter medications from sales tax. California doesn't. This act fixes that — and goes further. It exempts prepared foods under $15 at grocery stores (that rotisserie chicken your family depends on), medical devices like blood pressure monitors and glucose meters, and mobility equipment like wheelchairs and walkers. For low-income families, it adds a refundable Working Family Sales Tax Credit of up to $1,200 per household. And it guarantees that local governments lose nothing — the state backfills every dollar of lost revenue during a five-year transition. Exemptions, credits, local protection, and transparency — all in one act.
Grocery Store Prepared Food Exemption
If you're buying a rotisserie chicken at the grocery store to feed your family, the state shouldn't tax it like a restaurant meal
California exempts raw groceries from sales tax, but the second food is "prepared" — heated, combined, or ready to eat — it becomes taxable. That means a raw chicken is tax-free but a rotisserie chicken is taxed. A bag of lettuce is exempt but a pre-made salad isn't. For working families who depend on affordable ready-to-eat food from the grocery store, this is a hidden tax on convenience they can't avoid. This act exempts prepared food sold at grocery stores for $15 or less per item, as long as it's sold for off-premises consumption without utensils or seating. That covers rotisserie chickens, deli sandwiches, hot soup, breakfast burritos, and prepared sides. Restaurant meals, catered food, and anything with utensils or eat-in seating remain taxable. The $15 threshold adjusts for inflation every five years starting 2032.
Essential Health & Hygiene Goods — Tax Exempt
Most states stopped taxing tampons, diapers, and medications years ago — it's time California caught up
This is the core of the act: a full sales tax exemption on the things families buy because they have to, not because they want to. Menstrual products — tampons, pads, cups, discs, period underwear, disposable or reusable. Diapers — children's diapers, training pants, pull-ups, adult incontinence products, cloth diaper covers. Baby formula — infant, toddler, and specialty medical formulas in any form (powder, concentrate, ready-to-feed). Over-the-counter medications — pain relievers, cold medicine, allergy meds, digestive aids, first aid supplies, vitamins, supplements, and sunscreen SPF 15 or higher. Medical devices — glucose monitors, blood pressure monitors, thermometers, pulse oximeters, nebulizers, CPAP machines, hearing aids, insulin pumps, breast pumps, prosthetics. Mobility equipment — wheelchairs (manual and powered), walkers, canes, crutches, mobility scooters, ramps. Not cosmetics. Not fitness gear. Necessities.
Working Family Sales Tax Credit
Exemptions help everyone — but the families paying 10% of their income in sales tax need more
Even after expanding exemptions, low-income families still pay a larger share of their income in sales tax than wealthier households on everything else they buy — clothes, school supplies, household goods, car parts. The Working Family Sales Tax Credit offsets that. It's fully refundable — you get cash even if you owe no state taxes. For households at or below 200% of the federal poverty level: $400 per adult and $200 per child, up to $1,200 per household. For households between 200% and 300% FPL: $200 per adult and $100 per child, up to $600 per household. Non-filers can apply directly through a simplified process — online, by mail, or in person — and the Franchise Tax Board can verify income through CalFresh, Medi-Cal, or CalWORKs enrollment. Payments within 60 days. Adjusted for inflation starting 2030. Estimated cost: $150 million annually.
Local Government Revenue Protection
Tax relief for families shouldn't mean budget cuts for cities — so the state backfills every dollar
The biggest argument against expanding sales tax exemptions is that local governments depend on sales tax revenue to fund police, fire, roads, and parks. This act removes that argument. The Local Government Revenue Protection Program reimburses every city, county, and special district for revenue lost from the new exemptions — 100% backfill. The Department of Tax and Fee Administration calculates each jurisdiction's loss based on a three-year baseline, adjusted for inflation and population growth. The state Controller makes quarterly reimbursement payments with an annual true-up. The program runs for five years through June 30, 2032, with a review by the Department of Finance and LAO by January 2031 to assess whether local revenues have recovered through other growth. If funds fall short, reimbursements are prorated. Estimated cost: $50 million annually. No city loses a dime because Sacramento decided to stop taxing diapers.
Sales Tax Rate Transparency & Coordination
Most Californians have no idea their combined sales tax rate exceeds 10% — because nobody tells them
California's sales tax is a layer cake of state, county, city, and special district taxes — and most people never see the total until the receipt. This act requires every retailer to display the total combined sales tax rate at every point of sale — visible before you buy, at 12-point font minimum on physical signs. Online retailers must show it on the checkout page before completing the purchase. Every receipt must include the total rate, the total tax charged, and — on request — a breakdown by jurisdiction. The Department of Tax and Fee Administration must maintain a free online rate lookup tool where anyone can type in an address and see exactly what they're paying and to whom. The act also provides voluntary technical assistance for local governments that want to consolidate overlapping sales tax measures — model ballot language, legal guidance, and election coordination. No mandate — just help for cities that want to simplify.
Every Bill Meets These Standards
Article XIII compliance, Commerce Clause neutrality, Equal Protection rational basis, full local revenue protection, and complete severability. Legislation, not slogans.