TAXES ON BOTTLED CALIFORNIA WATER. LABELING REQUIREMENTS. INITIATIVE STATUTE.

Imposes a five-cent excise tax on each ounce of bottled water containing any surface, underground, or municipal water collected in California. Applies tax revenues to fund construction and maintenance of water infrastructure projects including dams, levies, water treatment facilities, and desalination plants. Requires each container of bottled California water sold in California to bear a statement and specific logo on its label identifying the product as “not drought friendly.” Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: If the measure is able to be implemented, an uncertain, but likely small, net change in state revenues, with any bottled water excise tax revenues funding water infrastructure. Potential state costs of up to millions of dollars per year to administer the excise tax. Likely reduction in fee revenue and costs for some municipal water utilities.