Publication 61, Sales and Use Taxes: Tax Expenditures Fiscal Year 2023–24

This publication explains the different tax exemptions and tax benefits (called “tax expenditures”) that existed under California’s Sales and Use Tax Law during the 2023–24 fiscal year. Laws or regulations may have changed since then, and in the event of a conflict with this publication, the law prevails.

The following regulations can be referred to in relation to this publication:

• Sales and Use Tax Regulations (1500–1707)
• Bradley-Burns Uniform Local Sales and Use Tax Regulations (1802–1808)
• Transactions and (Sales) and Use Tax Regulations (1821–1828)

California’s sales and use taxes apply to the retail sale or use of tangible personal property (physical goods) in California. But over the years, many laws have been passed that reduce or remove tax obligations for certain types of property, people, or organizations. These reductions are known as tax expenditures and may include:

• Tax exemptions
• Tax credits
• Tax deductions
• Other tax benefits

The publication includes a list of tax expenditures sorted by category, which includes:

• Necessities of Life
• General Public Benefit
• Industry Benefit
• Exclusions by Definition
• Other Tax Expenditures

The list gives short descriptions of each tax expenditure, the statute that created it, and—when possible—an estimate of how much revenue the state and local governments lose each year because of that tax expenditure. However, good data isn’t available for every item, so some revenue losses are marked “N/A”.

Revision December 2025