(PAL) Committee LEGISLATIVE POSITION REQUEST FORM
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Alameda County Board of Supervisors Personnel, Administration, and Legislation (PAL) Committee LEGISLATIVE POSITION REQUEST FORM Complete this form in order to propose a legislative advocacy position to the PAL Committee. Before submitting this form, the County's legislative advocates (State and federal) are available to assist you with any questions or concerns you may have. Please include the CAO Legislative Analyst in these communications. Instructions for completing the form are on the back. Please complete each item below. Submission deadline is noon on the Monday prior to the PAL meeting. CONNECTION TO ADOPTED LEGISLATIVE PLATFORM OR PRINCIPLE: Ensure CalWORKs is focused on alleviating poverty and preventing material hardship among children and families. Give families and caregivers adequate support they need to care for young children. Ensure all families have the ability to meet basic needs– nutritious food, shelter, clothing, health care, and accessible transportation. Support alcohol taxes to pay for public health and safety costs, reducing alcohol harms and underage drinking. REQUESTER’S INFORMATION: Name: Lori A. Cox Position: Agency Director Agency/Department: Social Services Agency CAO Budget, Performance and Policy Analyst: Meryl Klein REQUESTER’S RECOMMENDATION: Recommendation: Support BILL INFORMATION: Bill Number: AB 479 (as amended March 27, 2017) Bill Title: Sales and use taxes: exemption: menstrual and incontinence products: alcoholic beverage taxes: distilled spirits: additional surtax Legislative Author: Assemblymember Gonzalez-Fletcher Current Bill Status (include Committee action): Referred to Committee on Revenue and Taxation Current Law/Context: California's tax code exempts health items like walkers, medical identification tags, and prescription medication, including Viagra®. Diapers and menstrual products are not exempt from sales tax even though they are necessities for children, the elderly, people with disabilities, and women. Diapers cost anywhere from $72 to $100 per child every month or more depending on where families are able to purchase them. For this reason, 1 in 3 families experience diaper need – lack of a sufficient supply of diapers. Despite being a necessity to the hygiene and wellbeing of young children, the elderly, and their caregivers, diapers are not provided by state and federal assistance programs. More than half of seniors age 65 and older have experienced at least mild incontinence. Depending on the severity of the incontinence and the type of adult diaper used, seniors can expect to spend anywhere from $50 to $150 per month on adult diapers. This is a burdensome monthly expense for many, as more than 520,000 elderly Californians live at or below the federal poverty line, including 55 percent of the senior female population. According to the 2011 Elder Economic Security Index, which takes into account costs for housing, food, out-of-pocket medical expense and other necessary spending, half of Alameda County older adults do not have enough income to cover their basic needs. Approximately 11% of Alameda older adults aged 65 years and older are below the federal poverty level, and 1 in 4 older adults have an income of less than 200% of poverty For a low-income senior suffering from chronic incontinence, the cost of adult diapers can consume over 10 percent of annual income. California women pay $20 million in taxes on tampons and sanitary napkins each year. This is not insignificant to women, especially poor women on a tight budget who struggle to pay for basic necessities like a box of tampons or pads every month for their adult life. At least four states currently have a specific exemption for adult diapers. Seven states currently have specific exemptions for baby diapers. Currently, there are seven states that explicitly exempt feminine hygiene products, and 16 other states have recently introduced or considered similar legislation in addition to California. Description of Bill: Assembly Bill 479, the Common Cents Tax Reform Act, would amend the Revenue and Taxation Code to exempt diapers and menstrual hygiene products from sales and use taxes. To offset the lost state revenue from exempting these basic health supplies, AB 479 also modestly increases the current excise tax on distilled spirits. AB 479 increases the excise tax-per gallon on hard alcohol by $1.20 for distilled spirits that are under 100-proof, which equates to less than 1.5 cents per serving. For distilled spirits over 100 proof, which are less than 1 percent of sales covered by the liquor excise tax, the increase under AB 479 would be twice the amount in accordance with existing law. Taxes on beer and wine would not increase under AB 479. Potential financial and program impact to Alameda County (include impact to other County agencies/departments): Because AB 479 provides sales tax relief on necessary items for young children, the elderly, and women, this bill potentially benefits the majority of households throughout Alameda County. Families with children, women, and elderly and disabled individuals will experience tax relief on items they cannot simply choose to do without, and the revenue to the state would be balanced by a slight increase on the tax of hard alcohol. AB 479 will save millions of people real money: parents buying diapers for infants and children would save approximately $100 (or, one month’s worth of diapers) per child every year, those buying adult size diapers would save $50 to $150 in sales taxes per year, and women in California would save $20 million annually. The health and workforce implications of diaper need are significant. An insufficient supply of diapers means that parents are unable to go to work or school. The overwhelming majority of child care programs, a critical resource in our economy for working families, require parents to provide diapers, and very few accept newer types of reusable diapers. Not being part of the workforce would prevent many parents from becoming financially self-sufficient, perpetuating an environment of poverty and reliance on public assistance. Anticipated Opposition/Support: Support: Western Center on Law and Poverty Proposed Amendments (include amendments you are proposing): N/A MEETING DATE REQUESTS: Please specify the PAL Committee meeting date for your request: Next available Please specify the Board of Supervisors meeting date for your request: Next available SUBMIT COMPLETED FORM TO THE BOARD COMMITTEE CLERK via email: [email protected] AND TO: (1) CAO Legislative Analyst; and (2) Your Department’s CAO Budget, Performance and Policy Analyst For PAL meeting information, contact the Board Committee Clerk at 208 3916 or x-23916) Revised 1/11/16 th Assemblywoman Lorena Gonzalez Fletcher, 80 Assembly District AB 479: The Common Cents Tax Reform Act (Joint Author: Assemblywoman Cristina Garcia, AD 58) IN BRIEF This is a burdensome monthly expense for many, as more Assembly Bill 479, the Common Cents Tax Reform Act, than 520,000 elderly Californians live at or below the would amend the Revenue and Taxation Code to exempt federal poverty line, including 55 percent of the senior diapers and menstrual hygiene products from sales and use female population. For a low-income senior suffering from taxes. To offset the lost state revenue from exempting chronic incontinence, the cost of adult diapers can these basic health supplies, AB 479 also modestly increases consume over 10 percent of annual income. At least four the current excise tax on distilled spirits for the first time in states currently have a specific exemption for adult diapers. nearly three decades. Feminine Hygiene Products THE PROBLEM Women do not have a choice to ignore their menstrual cycles. The average woman has over 450 periods Incontinence Supplies throughout her lifetime, and a single box of tampons costs Diapers are an expensive necessity for every baby, and for $7 at common retailers. With each purchase, women pay many elderly and disabled Californians. The cost of living sales taxes on a necessary health related supply. Since there in California continues to rise, especially for low-income or are no equivalent health products used by men that are middle class families, and seniors on a fixed income. taxed, women in California end up paying millions every Everyday necessities of life, such as diapers, are expensive. year because our tax code is not gender neutral. Diapers for Infants and Children Currently, there are seven states that explicitly exempt feminine hygiene products, and 16 other states have Diapers cost anywhere from $72 to $100 per child every recently introduced or considered similar legislation in month or more depending on where families are able to addition to California. purchase them. For this reason, 1 in 3 families experience diaper need – lack of a sufficient supply of diapers. Despite THE SOLUTION being a necessity to the hygiene and wellbeing of young children and their caregivers, diapers are not provided by The Common Cents Tax Reform Act will eliminate sales state and federal assistance programs. and use taxes on three necessary health supplies for women and children, as well as disabled Californians or The health and workforce implications of diaper need are seniors with incontinence. Exempting these basic necessary significant. An insufficient supply of diapers means that health supplies in California is the right thing to do. AB parents are unable to go to work or school. The 479 will save millions of people real money: overwhelming majority of child care programs, a critical resource in our economy for working families, require Parents buying diapers for infants and children would parents to provide diapers, and very few accept newer save approximately $100 (or, one month’s worth of types of reusable diapers. Not being part of the workforce diapers) per child every year. would prevent many parents from becoming financially self-sufficient, perpetuating an environment of poverty and Those buying adult size diapers would save $50 to $150 in sales taxes per year.