Sales and use taxes: exemption: diabetic supplies.

The Sales and Use Tax Law imposes 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. That law provides various exemptions from that tax, including an exemption for insulin and insulin syringes furnished by a registered pharmacist to a person for treatment of diabetes as directed by a physician. This bill would expand this exemption to be applicable to insulin, insulin syringes, skin puncture lancets, and glucose test strips furnished by a registered pharmacist or any retailer, as provided. Counties and cities are authorized to impose local sales and use taxes, and districts, as defined, are authorized to impose transactions and use taxes, in conformity with state sales and use taxes. Exemptions from state sales and use taxes enacted by the Legislature are incorporated into these taxes. Section 2230 of the Revenue and Taxation Code provides that the state will 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 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, but its operative date would depend on its effective date.