To help stretch family budgets, Maryland will exempt diapers, infant car seats, and a number of other products from sales and use tax starting July 1, 2022. Feminine hygiene products are already exempt from Maryland sales tax, as are baby oil and baby powder.
The new sales tax exemptions are due to the enactment of several bills: SB 316, HB 282, HB 288, SB 571, HB 492, HB 364, HB 1151, and SB 488. Together, these measures exempt the following products on and after July 1, 2022:
- Baby bottles and baby bottle nipples
- Breast pumps and similar products that initiate, support, or sustain breastfeeding
- Diabetic care products, including insulin; glucose drinks, gels, and tablets; blood and urine ketone meters and supplies; and insulin pumps and pump infusion sets
- Diapers, diaper rash cream, and baby wipes
- Infant car seats
- Medical devices and products, including blood pressure monitors, pulse oximeters, specified respirators, and medical or clinical thermometers
- Nicotine patches, nicotine gum, and certain other products intended for use as an aid in tobacco use cessation
- Oral hygiene products, including dental floss, mouthwash, toothbrushes, toothpaste,and tooth powders
During a press conference earlier this year, House Speaker Adrienne Jones said, “Parents shouldn’t have to decide between buying diapers, or new toothbrushes for the family. People shouldn’t have to worry if they can afford next month’s diabetes test strips.”
These products can certainly add up. Whether exempting them from Maryland’s 6% sales and use tax will put them within reach of low-income consumers remains to be seen, but the exemption will likely help. It will also reduce state sales and use tax collections: Exempting diapers is expected to reduce general fund revenues by approximately $7.5 million in fiscal 2023 and $8.1 million in fiscal 2027.
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