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HB 2678

TPT; diapers; feminine hygiene; exemption

57th Legislature - Second Regular Session Introduced by Cesar Aguilar and 19 co-sponsors

Arizona bill exempts diapers and feminine hygiene products from sales tax, reducing consumer costs for essential items while decreasing state TPT revenue.

House Second Reading
0
WeVote Research Nonpartisan
Bill Summary · HB 2678

Legislative bill overview

HB 2678 proposes to exempt diapers and feminine hygiene products from Arizona's Transaction Privilege Tax (TPT), commonly known as sales tax. The bill would reduce the tax burden on these essential personal care items by removing them from the state's standard sales tax calculation.

Why is this important

Sales tax exemptions directly affect household expenses for basic necessities. Diapers and feminine hygiene products are recurring costs that disproportionately impact lower-income households, families with young children, and women. This policy change would either reduce consumer costs or redirect tax revenue allocation, depending on implementation details.

Potential points of contention

  • Revenue impact: Removing these items from the tax base reduces state revenue, requiring either budget cuts elsewhere or alternative revenue sources to maintain services
  • Scope definition: Determining which products qualify (e.g., specific diaper types, all feminine hygiene products, or only certain brands) creates implementation complexity and potential loopholes
  • Equity concerns: Critics may argue exempting specific product categories is inequitable compared to broader tax relief or that other essential items (food staples, medications) deserve similar treatment
  • Market effects: Tax exemptions may not guarantee lower prices if retailers absorb savings rather than passing them to consumers

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

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