Alabama closer to removing taxes for diapers, baby formula, feminine hygiene products
The Senate Finance and Taxation Education Committee Wednesday unanimously approved a bill that would take state sales and use taxes off certain maternity, baby, formula and menstrual hygiene products.
SB 62, sponsored by Sen. Arthur Orr, R-Decatur, the chair of the committee, would remove state taxes from baby formula, baby bottles, baby wipes, breast milk pumping equipment, breast pump, diapers, maternity clothing and menstrual hygiene products “for personal use.”
Orr said the bill seemed to be a “low-cost” way to support families with small children.
“The other aspect on the feminine hygiene products (is) why should half of our population have to be taxed on something that is a necessity and the other half not?” he said.
The Fiscal Division of the Legislative Services Agency estimates the bill would cost the Education Trust Fund $8.7 million and the General Fund $2.5 million. The ETF is budgeted to spend $8.8 billion this year. The General Fund is expected to spend $3 billion.
As filed, the bill took out state and local taxes. An amendment from Sen. Garlan Gudger, R-Cullman, altered the bill’s treatment of local taxes. Orr said he had heard from local governments to opt in or out.
“I do think as an ex-city councilman, same as a lot of people around this table, or a county commissioner that we should not meddle in the home rule,” said Gudger.
The amendment passed 11-4 over Orr’s objections.
The bill moves to the full Senate.