Sales and Use Tax Law: exemptions: infant formula.

The entire new Section 6363.11 was removed. That section had created a separate, time-limited infant formula exemption effective January 1, 2027 through January 1, 2040, with its own sunset clause repealing the section on that date.

The enrolled version instead amends Section 6359(b)(4) to list infant formula among 'food products' and states this is declaratory of existing law, meaning no new exemption is created - it simply clarifies that infant formula was already exempt as a food product. There is no sunset date.

Section 2 of the Senate amendment, which stated that no appropriation is made and the state shall not reimburse local agencies for sales and use tax revenues lost under this act, was removed entirely from the enrolled version.

The exemption no longer has a start date of January 1, 2027 or an end date of January 1, 2040. As declaratory of existing law, it applies immediately and indefinitely.

All provisions related to the State Parks Protection Fund voluntary tax contribution (Section 18900.1) were removed from the bill, including rules about park pass entitlements, form revisions, and information sharing between the Franchise Tax Board and Department of Parks and Recreation.

The infant formula exemption approach changed from adding a new Section 6363.11 (a standalone exemption effective January 1, 2027 through January 1, 2040) to amending the existing Section 6359 food products exemption to explicitly list infant formula as included in 'food products,' with a statement that this is declaratory of existing law rather than a new exemption.

The fiscal committee vote changed from 'no' to 'yes,' indicating the committee now supports the bill. This likely reflects the reframing of the infant formula provision as declaratory of existing law, which would not create new state revenue losses requiring reimbursement.

Added Section 6363.11 to the Revenue and Taxation Code exempting infant formula from state sales and use tax on and after January 1, 2027, through December 31, 2039.

Defined 'infant formula' by incorporating the definition in paragraph (2) of subdivision (d) of Section 114094.5 of the Health and Safety Code.

Set a sunset date of January 1, 2040, at which point the infant formula exemption is automatically repealed.

Provided that notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state will not reimburse counties or cities for sales and use tax revenue lost due to the infant formula exemption.

Fiscal committee designation changed from 'no' to 'yes,' reflecting the new fiscal impact of the sales tax exemption.

Added a tax levy clause stating the act provides for a tax levy under Article IV of the California Constitution and takes immediate effect.

The original State Parks Protection Fund provisions (Section 18900.1) were retained with only nonsubstantive formatting changes and renumbered as Section 1 of the bill.