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SB 503

Relating to security on farms.

2025 Regular Session Introduced by David Smith

Exempts menstrual products from North Carolina state sales tax, reducing costs for people who menstruate; takes effect Oct 1, 2023.

In committee upon adjournment.
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WeVote Research Nonpartisan
Bill Summary · SB 503

SB 503 — Menstrual Products Sales Tax Exemption (summary)

Status (per materials): Introduced; passed first reading. (Bill drafts show amendments to North Carolina tax law. See “Procedural” below for timeline details included in the bill text.)

Main purpose

SB 503 would exempt menstrual hygiene products from state retail sales tax. The stated intent is to remove a routine consumption tax on items used for menstrual hygiene, reducing the tax burden on those who menstruate and treating these items as essential, not luxury, goods.

Key provisions

  • Amends the North Carolina General Statutes definitions and retail tax exemptions:
    • Adds a definition of “menstrual products” to G.S. 105‑164.3: explicitly includes tampons, panty liners, menstrual cups, sanitary napkins, and “other similar tangible personal property designed for feminine hygiene in connection with the human menstrual cycle.”
    • Adds “menstrual products” to the list of items exempt from the State’s retail sales and use tax in G.S. 105‑164.13.
  • Effective date (as provided in the bill text): becomes effective October 1, 2023, and applies to sales on or after that date. (Check enacted language or later amendments for any different effective date in the legislative history.)

Who is affected

  • Primary beneficiaries: consumers who purchase menstrual products (disproportionately women, transgender men, and nonbinary people who menstruate), including low‑income purchasers who face higher relative burdens from point‑of‑sale taxes.
  • Retailers: must update point‑of‑sale systems to reflect the new exemption and comply with recordkeeping and reporting requirements under the tax code.
  • State and local governments: forego some sales tax revenue collected on these items (state-level impact depends on the number/value of exempted sales and whether local sales taxes are tied to the same exemptions).

Fiscal and administrative impacts

  • Revenue: The exemption will reduce statewide sales tax collections by an amount equal to the pre‑exemption tax collected on qualifying menstrual products. The bill text does not include a fiscal note; actual revenue effects depend on consumption patterns and any offsetting changes (e.g., local tax laws).
  • Administrative: Department of Revenue guidance and retailer systems will need updates (product coding, training, public guidance). Retailers may request technical guidance on POS changes and exemption coding.

Policy and equity considerations

  • Supporters cite affordability and gender‑equity aims (removing a tax on essential hygiene items).
  • Opponents or fiscal analysts may emphasize the lost tax revenue and the need to quantify budget impacts or consider targeted exemptions (e.g., vouchers, income‑based approaches).

Procedural / timeline notes

  • The bill text amends G.S. 105‑164.3 and G.S. 105‑164.13.
  • The materials you provided show multiple legislative steps in different sessions and versions; check the current enacted version (or the bill’s status in the specific legislature) for final effective date, any fiscal notes, and implementing guidance from the Department of Revenue.
  • Related measures and companions are listed (examples include HB 147, HB 1417, HB 197); coordinate review of companion bills for final enacted language.

If you want, I can:
- Draft a short fiscal estimate using available state sales data, or
- Prepare suggested implementation guidance for retailers and the revenue department (POS coding, reporting, consumer signage).

Compiled from official sources — confirm details with the bill’s official record.

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