Summary of House Bill 1016
Bill Number: HB 1016
Title: To Create a Sales and Use Tax Exemption for Menstrual Discharge Collection Devices; To Create a Sales and Use Tax Exemption for Diapers; and To Create a Sales and Use Tax Exemption for Certain Items Related to Breastfeeding.
Status: Died in House Committee at Sine Die adjournment
Introduced: November 20, 2024
Purpose and Intent
House Bill 1016 aimed to alleviate financial burdens on families by creating sales and use tax exemptions for essential health and hygiene products, specifically:
- Menstrual discharge collection devices
- Diapers
- Certain breastfeeding-related items
The intent behind the bill was to promote accessibility to these necessary items, which are often considered essential for health and hygiene.
Key Provisions
The bill proposed the following tax exemptions:
1. Menstrual Discharge Collection Devices
- Defined to include:
- Tampons
- Panty liners
- Menstrual cups
- Pads
- Period underwear and clothing marketed for menstrual use (e.g., period swimwear, running shorts)
- Excluded grooming and hygiene products (e.g., soaps, shampoos).
2. Diapers
- Defined as absorbent garments worn by individuals who cannot control their bladder or bowel movements, including both children and adults, and covering disposable diapers.
3. Breastfeeding-Related Items
- Items exempted include:
- Baby bottles and nipples
- Baby bottle sterilizers
- Breast pumps and kits
- Breast pump collection and storage supplies
- Nipple shields
- Nursing pads
- Specific definitions were provided for each item to clarify what is included and excluded from the exemption.
Fiscal Impact
The estimated fiscal impact of the bill was significant:
- FY2026: Approximate state sales and use tax loss of $39,927,771.
- FY2027: Estimated loss increased to $61,688,406.
- The bill was projected to affect both state and local tax revenues, with detailed breakdowns provided for various funds.
Affected Parties
The bill would have primarily benefited:
- Individuals and families purchasing menstrual products, diapers, and breastfeeding supplies.
- Retailers selling these items, who would no longer need to collect sales tax on these products.
Procedural Timeline
- November 20, 2024: Bill filed.
- January 13, 2025: Read for the first time and referred to the Committee on Revenue & Taxation.
- January 16, 2025: Amendment adopted; bill reported correctly engrossed.
- May 5, 2025: Bill died in House Committee at Sine Die adjournment.
Conclusion
While HB 1016 aimed to provide essential tax relief for necessary health and hygiene products, it ultimately did not advance through the legislative process. The proposed exemptions reflected a growing recognition of the financial challenges faced by families in accessing these critical items.
