HB 510 — Menstrual Equity for All Act (summary)
Status & timing
- Bill number: HB 510, “Menstrual Equity for All Act.”
- Introduced: November 12, 2024.
- Effective date (as written): July 1, 2025. Sections that change sales tax rules apply to sales made on or after that date.
- Current procedural note: Bill has moved through committee and floor action; see clerk records for the latest chamber votes and final enactment status.
Purpose
- Reduce the financial burden of menstrual products and expand access in schools by (1) exempting designated “feminine hygiene products” from State sales tax and (2) funding a grant program to supply products through the Department of Public Instruction (DPI).
Key provisions
1. Sales tax definitions and exemption
- Adds statutory definitions to G.S. 105‑164.3:
- “Feminine hygiene products” — tampons, sanitary napkins, panty liners, menstrual cups, and similar tangible goods designed for menstrual hygiene.
- “Grooming and hygiene products” — soaps, shampoo, toothpaste, mouthwash, antiperspirants, sunscreen, etc. (explicitly separated from menstrual products).
- Adds a new exemption in G.S. 105‑164.13 to exempt “feminine hygiene products” from the State sales and use tax (new subdivision listed as (76) in the statute).
- The definition clarifies that the exemption applies specifically to menstrual hygiene items and not to the listed grooming/hygiene items.
- Appropriation and school grant program
- Appropriates $750,000 recurring per year from the General Fund to the Department of Public Instruction for each year of the 2025–2027 fiscal biennium.
- Funds are to be used for a “Feminine Hygiene Products Grant Program” established under G.S. 115C‑377 (DPI to administer grants to expand access — e.g., supply products in schools).
Who is affected
- Consumers: Individuals purchasing menstrual products will no longer pay State sales tax on qualifying items (reducing out‑of‑pocket cost at point of sale).
- Retailers: Must change tax collection practices to exempt qualifying feminine hygiene products; update point‑of‑sale systems and compliance reporting.
- Department of Public Instruction and schools: DPI will administer the grant program; local school units are potential grantees to receive funds for stocking/providing menstrual products.
- State finances: General Fund will forgo sales tax revenue on covered products (amount not specified in the bill). The bill also creates a recurring General Fund expenditure of $750,000 per year (2025–27) to DPI for the grant program.
Procedural / implementation notes
- Effective date: July 1, 2025; sales tax exemption applies to sales on or after that date.
- Administrative actions likely required:
- Revenue/Tax division updates for retailer guidance and tax forms.
- DPI must establish grant rules, application processes and distribution mechanisms under G.S. 115C‑377.
- No revenue estimate or fiscal note is included in the text; net fiscal impact depends on lost tax receipts from exempted sales versus administrative and program costs (the appropriation is specified).
Net effect (summary)
- HB 510 eliminates State sales tax on defined menstrual hygiene products and funds a DPI grant program to improve availability of these products in schools. The measure reduces consumer costs and supports school‑based access while creating a recurring appropriation and reducing State sales tax revenue for the affected items.
