California approved a $1.4 billion sales tax holidays in December and January, according to state data released on Wednesday.
The tax holiday goes into effect on Jan. 5, 2019.
The tax holiday, which went into effect at the end of January, is the largest in the country, accounting for about a third of all sales tax revenues.
The California Legislature voted in December to extend the sales tax for four years.
The new tax holiday will generate $1 billion in new revenue for the state, with the proceeds going to local governments and the state’s general fund.
The money will be used to provide more than 2.2 million Californians with more than $4 billion in additional revenue, according a statement from the state Department of Finance.
The state’s first sales tax increase in more than two decades was approved in January, when it went into full effect, boosting the sales and excise taxes by $150 million.