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Business Taxes Law Guide—Revision 2024
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*
Section 7284.12
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.
* Chapter 1.8 was added by Stats. 2018, Ch. 61 (AB 1838), in effect June 28, 2018.