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Bill

SB 3127

Sales tax; exempt sales of baby formula and baby diapers.

2025 Regular Session

Exempts the sale of baby formula and baby diapers from state sales tax, reducing costs for families with infants.

Died In Committee
#finance
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WeVote Research Nonpartisan
Bill Summary · SB 3127

Summary: SB 3127 – Sales tax; exempt sales of baby formula and baby diapers

SB 3127 proposes to exempt the sale of baby formula and baby diapers from the state’s sales tax. The bill was introduced on February 24, 2025, referred to the Finance committee the same day, and died in committee on February 26, 2025.

Purpose and Intent

  • To provide tax relief for families with infants by removing state sales tax on two essential infant care items: baby formula and baby diapers.
  • Aims to reduce the ongoing cost of infant care for households with young children and potentially ease budget pressures for securing these items.

Key Provisions (as drafted)

  • Establishment of a state sales tax exemption for the sale of baby formula.
  • Establishment of a state sales tax exemption for the sale of baby diapers.
  • The bill would include definitions, scope, and implementation details (e.g., what qualifies as “baby formula” and “baby diapers,” any limitations, and administrative provisions). Specific dates for the exemption’s effective period and any related provisions would be set forth in the text.

Affected Parties

  • Families purchasing baby formula and baby diapers.
  • Retailers and merchants that sell baby formula and diapers (administrative compliance and collection implications).
  • State tax and revenue authorities responsible for administering the exemption.

Fiscal and Revenue Considerations

  • The exemptions would reduce state sales tax revenue derived from sales of baby formula and baby diapers, to the extent those items are currently taxable.
  • The exact fiscal impact would depend on tax base, sale volumes, and any defined scope in the bill (e.g., whether exemptions apply to all retail channels and all forms of these products).

Legislative History and Status

  • Introduced: February 24, 2025
  • Referred to Finance: February 24, 2025
  • Died in Committee: February 26, 2025
  • Status: The bill did not advance beyond committee and therefore did not proceed to the floor for debate or a vote.

Implementation Considerations (if revived)

  • Definitions: Clear criteria for what qualifies as “baby formula” and “baby diapers.”
  • Admin/Compliance: How retailers report and apply the exemption; potential need for updating tax forms and systems.
  • Economic Effects: Net impact on families versus potential revenue losses; consideration of cross-border shopping and substitution effects.

Notes

  • Because the bill died in committee, no enactment or implementation steps will take effect unless reintroduced or amended in a future session.

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

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