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Under a bill passed unanimously by the Alabama House of Representatives on Thursday, consumers in the state would no longer pay the state’s 4 percent sales tax on diapers, baby formula, menstrual hygiene products and other essential items.
HB152, introduced by Rep. Neil Rafferty, D-Birmingham, is expected to save taxpayers an estimated $13 million annually. The bill is part of a broader effort by lawmakers to provide tax relief, marking the fifth tax cut approved by the House this week.
The tax exemption applies only to the state sales tax. Local county and municipal sales taxes will remain unless county commissions or city councils adopt similar exemptions.
While the bill received unanimous support, some lawmakers raised concerns about the breadth of this specific tax cut. Rep. Mary Moore, D-Birmingham, pointed out that while the funds are currently in good standing, collected taxes are important to provide for residents.
“I’m just fed up with tax cuts to the point where we don’t have the monies, and we may be riding high now, but I’ve been here when we couldn’t even get the ends to meet,” said Moore.
During the discussion, Rep. Ginny Shaver, R-Leesburg, proposed an amendment to change the language in the bill regarding diapers from “a child” to “an individual.”
“You know I’m all about women, children, and seniors,” Shaver said while addressing Rafferty on the House floor. “I have an amendment to include seniors with diapers.”
The amendment passed unanimously.
Before Shaver’s amendment, the bill was estimated to reduce revenue to the Education Trust Fund by $10.5 million. The inclusion of adult diapers adds another $2.5 million in tax cuts. However, the ETF remains well-funded, with a total budget of $9.2 billion this year.
With bipartisan support in the House, the bill now moves to the Alabama Senate for consideration. If passed and signed into law, the bill would take effect Sept. 1, 2025, and end in 2028.
