California Proposition 163, No Sales Tax on Food Products Sold for Home Use (1992)
Proposition 163 amended the California Constitution to prohibit the state, or any county, city, or special district, from imposing sales or use taxes on food products used for home consumption. There was already a statutory exemption for taxing such food products; Prop 163 elevated that exemption to the level of a constitutional amendment, making it harder to change.
Proposition 163 also changed state law to define candy, snack foods, and bottled water as food products, which had the effect of exempting them from sales tax.
The fiscal estimate provided by the California Legislative Analyst's Office said:
- Reduces sales and use tax revenue to the state by $210 million in the current year (1992-93) and $330 million annually thereafter.
- Reduces sales and use tax revenue to local governments by $70 million in the current year and $120 million annually thereafter.
- November 3, 1992 Official Voter Guide
- Hastings California I&R database
- Los Angeles Law Library, 1992 ballot propositions