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Business Taxes Law Guide—Revision 2024

BTLG Table of Contents > Additional Local Taxes > Chapter 1.8 > entire chapter

Additional Local Taxes

Revenue and Taxation Code

Division 2. Other Taxes
Part 1.7. Additional Local Taxes
Chapter 1.8. Keep Groceries Affordable Act of 2018*

7284.8. Title. This chapter shall be known and may be cited as the Keep Groceries Affordable Act of 2018.

History—Added by Stats. 2018, Ch. 61 (AB 1838), in effect June 28, 2018.

7284.9. Legislative findings and declarations. The Legislature finds and declares all of the following:

(a) It is the intent of the Legislature to regulate the imposition and collection of taxes and other charges on groceries comprehensively and to occupy the field to the exclusion of local action except as specifically provided in this chapter.

(b) That the promotion of uniformity in the taxation of groceries is a matter of statewide concern and, therefore, is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution.

History—Added by Stats. 2018, Ch. 61 (AB 1838), in effect June 28, 2018.

7284.10. Definitions. For the purposes of this chapter, all of the following definitions shall apply:

(a) "Alcoholic beverages" has the same meaning as that term is defined in Section 23004 of the Business and Professions Code.

(b) "Cannabis products" has the same meaning as that term is defined in Section 11018.1 of the Health and Safety Code.

(c) "Cigarettes" has the same meaning as that term is defined in Section 30121.

(d) "Electronic cigarettes" has the same meaning as that term is defined in Section 30121.

(e) (1) "Groceries" means any raw or processed food or beverage including its packaging, wrapper, or container, or any ingredient thereof, intended for human consumption, including, but is not limited to, meat, poultry, fish, fruits, vegetables, grains, bread, milk, cheese and other dairy products, carbonated and noncarbonated nonalcoholic beverages, kombucha with less than 0.5 percent alcohol by volume, condiments, spices, cereals, seasonings, leavening agents, eggs, cocoa, teas, and coffees whether raw or processed, including its packaging, wrapper, or container.

(2) "Groceries" does not include alcoholic beverages, cannabis products, cigarettes, tobacco products, and electronic cigarettes.

(f) "Local agency" has the same meaning as provided in Section 7920.510 of the Government Code, and includes the electorate of a local agency in exercising the initiative power.

(g) "Tax, fee, or other assessment on groceries" includes, but is not limited to, a sales tax, gross receipts tax, business and occupation tax, business license tax, excise tax, privilege tax, surcharge, or any other similar levy, charge, or exaction of any kind on groceries or the manufacture, supply, distribution, sale, acquisition, possession, ownership, transfer, transportation, delivery, use, or consumption thereof.

(h) "Tobacco products" has the same meaning as that term is defined in Section 30121.

History—Added by Stats. 2018, Ch. 61 (AB 1838), in effect June 28, 2018. Amended by Stats. 2021, Ch. 615 (AB 474), in effect January 1, 2022, substituted "7920.510" for "6252" after "provided in Section" in subdivision (f).

7284.10. Definitions. For the purposes of this chapter, all of the following definitions shall apply:

(a) "Alcoholic beverages" has the same meaning as that term is defined in Section 23004 of the Business and Professions Code.

(b) "Cannabis" has the same meaning as that term is defined in Section 26001 of the Business and Professions Code.

(c) "Cannabis products" has the same meaning as that term is defined in Section 26001 of the Business and Professions Code.

(d) "Cigarettes" has the same meaning as that term is defined in Section 30121.

(e) "Electronic cigarettes" has the same meaning as that term is defined in Section 30121.

(f) (1) "Groceries" means any raw or processed food or beverage including its packaging, wrapper, or container, or any ingredient thereof, intended for human consumption, including, but is not limited to, meat, poultry, fish, fruits, vegetables, grains, bread, milk, cheese and other dairy products, carbonated and noncarbonated nonalcoholic beverages, kombucha with less than 0.5 percent alcohol by volume, condiments, spices, cereals, seasonings, leavening agents, eggs, cocoa, teas, and coffees whether raw or processed, including its packaging, wrapper, or container.

(2) "Groceries" does not include alcoholic beverages, cannabis, cannabis products, cigarettes, tobacco products, and electronic cigarettes.

(g) "Local agency" has the same meaning as provided in Section 7920.510 of the Government Code, and includes the electorate of a local agency in exercising the initiative power.

(h) "Tax, fee, or other assessment on groceries" includes, but is not limited to, sales and use taxes, a gross receipts tax, business and occupation tax, business license tax, excise tax, privilege tax, surcharge, or any other similar levy, charge, or exaction of any kind on groceries or the manufacture, supply, distribution, sale, acquisition, possession, ownership, transfer, transportation, delivery, use, or consumption thereof.

(i) "Tobacco products" has the same meaning as that term is defined in Section 30121.

History—Added by Stats. 2018, Ch. 88 (SB 872), in effect July 09, 2018. Amended by Stats. 2021, Ch. 615 (AB 474), in effect January 1, 2022, substituted "7920.510" for "6252" after "provided in Section" in subdivision (g).

7284.12. Limits on local agencies’ authority. (a) Notwithstanding any other law, and except as provided in this section, on or after the effective date of this chapter, a local agency shall not impose, increase, levy and collect, or enforce any tax, fee, or other assessment on groceries.

(b) A local agency may continue to levy and collect, enforce, or reauthorize any tax, fee, or other assessment on groceries imposed, extended, or increased on or before January 1, 2018.

(c) Any tax, fee, or other assessment on groceries imposed by a local agency after January 1, 2018, and before the effective date of this section shall become inoperative as of the effective date of this section and shall cease to be imposed, levied and collected, and enforced as of that date.

(d) This section does not prohibit the imposition, extension, increase, levy and collection, or enforcement of a tax, fee, or other assessment on groceries if both of the following apply:

(1) The tax, fee, or other assessment is generally applicable to a broad range of businesses, business activity, or products.

(2) The tax, fee, or other assessment does not establish or rely on a classification related to or involving groceries or a subset of groceries for purposes of establishing or otherwise resulting in a higher tax rate due to that classification.

(e) This section does not prohibit or limit any tax levied by a local agency pursuant to, or in accordance with, 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)).

(f) The California Department of Tax and Fee Administration shall not administer and shall terminate its contract to administer any sales or use tax ordinance of a local agency under the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) if that local agency imposes, increases, levies and collects, or enforces any tax, fee, or other assessment on groceries, as defined in subdivision (g) of Section 7284.10, for which a court of competent jurisdiction has determined both of the following:

(1) The tax, fee, or other assessment is in conflict with the prohibition set forth in subdivision (a), and is not a tax, fee, or other assessment described in subdivision (b) or (d).

(2) The tax, fee, or other assessment is a valid exercise of a city’s authority under Section 5 of Article XI of the California Constitution with respect to the municipal affairs of that city.

History—Added by Stats. 2018, Ch. 61 (AB 1838), in effect June 28, 2018.

7284.13. Interpretation. The provisions of this chapter are to be construed liberally so as to effectuate their intent, policy, and purposes.

History—Added by Stats. 2018, Ch. 61 (AB 1838), in effect June 28, 2018.

7284.14. Severability of provisions. If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances is not affected.

History—Added by Stats. 2018, Ch. 61 (AB 1838), in effect June 28, 2018.

7284.15. Civil actions. (a) A civil action with respect to the application of this chapter to a tax, fee, or other assessment shall be given preference over all other civil actions before the court in the matter of setting the same for hearing or trial, and in hearing the same, to the end that the action shall be speedily heard and determined.

(b) Venue for a civil action given preference in subdivision (a) shall be exclusively in Sacramento County.

History—Added by Stats. 2018, Ch. 61 (AB 1838), in effect June 28, 2018.

7284.16. Repeal date. This chapter shall become inoperative on January 1, 2031, and shall be repealed as of that date.

History—Added by Stats. 2018, Ch. 61 (AB 1838), in effect June 28, 2018.

* Chapter 1.8 was added by Stats. 2018, Ch. 61 (AB 1838), in effect June 28, 2018.