North Dakota to nix diaper tax July 1, 2023
North Dakota will soon join the growing list of states with no sales tax on diapers.
Adult diapers are already exempt from sales tax in North Dakota. However, North Dakota currently imposes a sales tax on diapers for children.
Starting July 1, 2023, child diapers will be exempt from North Dakota sales and use tax too. The tax change is due to the enactment of HB 1177.
“We already exempt adult diapers.”
North Dakota is unusual in levying sales tax on diapers for children while exempting diapers for adults. The majority of states that don’t tax these essential products provide a diaper tax exemption for adult and child diapers alike — though a few states exempt diapers for children but tax diapers for adults.
“We already exempt adult diapers,” noted Representative SuAnn Olson in her testimony in support of the bill. “We need to do everything we can to support families and make it just a bit easier for parents to pay their family expenses.”
Having no sales tax on diapers for children is expected to reduce North Dakota sales tax collections by $1.75 million in the 2023–2025 biennium.
More states to provide diaper tax exemptions
Numerous states now provide diaper sales tax exemptions. Florida starts exempting diapers on July 1, 2023, like North Dakota. Colorado and Iowa got rid of their diaper tax on January 1, 2023.
And more states are on track to exempt diapers:
Texas will end its diaper tax effective September 1, 2023, along with the sales tax on feminine hygiene products.
Maine is expected to eliminate the sales tax on diapers for children starting January 1, 2024. Adult diapers will likely remain taxable.
Nonetheless, about half of all states still have a diaper sales tax. If your business is struggling to collect and remit sales tax on diapers in one or more states, automating sales tax compliance can help.
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