States looking to exempt diapers or tampons in 2021

In recent years, the fact that diapers and feminine hygiene products are subject to sales tax has come under scrutiny. As a result, each year at least a few states consider carving out a sales and use tax exemption for some or all of these products. 2021 is no different.

As always, where sales tax is concerned, each state takes a slightly different approach. Read on for state-specific details.

These states may exempt diapers or feminine hygiene products in 2021 (or 2022)

Arkansas introduced a bill to exempt feminine hygiene products, along with grooming and hygiene products like soap, shampoo, and toothpaste. If HB 1065 is enacted, the exemption will take effect on the first day of the calendar quarter following the effective date of the act.

Florida SB 806 seeks to exempt diapers and incontinence liners, pads, and undergarments effective January 1, 2022. Feminine hygiene products have been exempt from Florida sales and use tax since January 1, 2018.

Hawaii may exempt feminine hygiene products from the state’s general excise tax (GET) starting July 1, 2021 (SB 849), or after December 31, 2021 (HB 638).

Indiana may exempt feminine hygiene products from the state’s gross retail sales tax starting July 1, 2021 (HB 1273).

Iowa lawmakers are seeking an exemption for feminine hygiene products (also called “period products) and adult and child diapers (SF 213, SF 36). Diapers are currently exempt only during the state’s annual sales tax holiday.

Louisiana would exempt diapers and feminine hygiene products purchased for personal use. HB 7 only applies to state sales tax; it would not affect local sales and use taxes, which are regulated by local governments.

Maine may exempt diapers, feminine hygiene products, and toilet paper because they are “basic needs products.” If LD 1335 (HP 986) is enacted as written, the exemption would take effect August 1, 2022.

Michigan could exempt feminine hygiene products after September 30, 2021 (SB 153, SB 154, HB 4270, HB 4271).

North Carolina S614 would exempt feminine hygiene as well as grooming and hygiene products starting October 1, 2021.

Ohio may exempt the sale and use of adult and child diapers, including liners, training pads, and underpads. The exemption provided by SB 114 would replace an existing provision exempting prescription adult diapers for individuals diagnosed with incontinence who are covered by Medicaid. It would take effect on or after the first day of the first month that begins at least 30 days after the bill’s effective date. Ohio eliminated tax on feminine hygiene products in 2019.

Oregon is looking to exempt baby formula, diapers, and feminine hygiene products from  commercial activity subject to corporate activity tax as of January 1, 2022 (SB 521).

South Carolina could exempt feminine hygiene products beginning July 1, 2021 (H 3747).

Texas HB 322 (HB 387) would exempt child and adult diapers. According to the bills, the exemption would apply to “a diaper, an absorbency undergarment, or a guard or pad used for protection against urinary or colonic leakage” as of September 1, 2021. Several other bills (HB 321, HB 388, HB 490, SB 148) would exempt feminine hygiene products starting the same date.

Tennessee SB 24 and HB 1031 would exempt feminine hygiene products on and after July 1, 2021.

Vermont lawmakers appear likely to approve an exemption for feminine hygiene products. It would take effect July 1, 2021, if S.53 (H.53) is enacted.

Washington SB 5309 would exempt adult and baby diapers from state and local sales and use taxes starting October 1, 2021. SB 1535, which provides no effective date, would exempt diapers for children and diaper services. Feminine hygiene products have been exempt from Washington sales tax since July 1, 2020.

Wisconsin may exempt the following from state and county sales and use tax: diapers, sanitary napkins, tampons, and undergarments for incontinence. If SB 227 is enacted, the exemption would take effect on the first day of the third month after publication of the law. Wisconsin lawmakers considered but rejected similar proposals in 2015, 2017 and 2019.

These states considered — and rejected — an exemption for diapers or feminine hygiene products in 2021

The Kentucky Legislature adjourned sine die without enacting HB 49, which would have exempted prescription incontinence products sold to a person with a medical diagnosis of incontinence and a prescription. Had it been enacted, it would have taken effect August 1, 2021. Another bill, HB 110, sought to exempt feminine hygiene products starting July 1, 2021.

Mississippi lawmakers failed to enact SB 2709 or HB 1238, which would have provided an exemption for baby formula, baby diapers, and feminine hygiene products starting July 1, 2021.

Utah lawmakers did not approve an exemption for feminine hygiene products (HB 204). Had they, it would have taken effect July 1, 2021.

The West Virginia Legislature adjourned sine die without enacting SB 291 (HB 3039), which sought to create a state sales tax exemption for diapers (for adults and children) and feminine hygiene products.

Wyoming’s SF 27 died in committee on April 7, 2021. It sought to create a sales and use tax exemption for diapers (for adults and children) and feminine hygiene products effective July 1, 2021.

 

If any of the above proposed bills become law, we’ll update this post. If you’re looking to facilitate the collection and remittance of sales tax, check out avalara.com.

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