AB 226

This bill creates a sales and use tax exemption for the sale of diapers and

feminine hygiene products. The bill also exempts diapers and feminine hygiene

products from the Unfair Sales Act. The Unfair Sales Act prohibits retailers and

wholesalers from selling merchandise for less than the cost of the merchandise to the

seller. Under the bill, the prohibition on below-cost sales does not apply to diapers

and feminine hygiene products.

Because this bill relates to an exemption from state or local taxes, it may be

referred to the Joint Survey Committee on Tax Exemptions for a report to be printed

as an appendix to the bill.