Page 1 of 2 LRC 2022-BR142-HB27
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2022 R EGULAR SESSION
MEASURE
2022 BR NUMBER 142 HOUSE BILL NUMBER 27
TITLE AN ACT relating to the taxation of feminine hygiene products.
SPONSOR Representative Attica Scott
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT (S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDATE
APPROPRIATION UNIT(S) IMPACTED:
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED
FISCAL ESTIMATES 2021-2022 2022-2023 2023-2024 ANNUAL IMPACT AT FULL
IMPLEMENTATION
REVENUES ($1,900,000) ($2,300,000) ($2,300,000)
EXPENDITURES
NET EFFECT ($1,900,000) ($2,300,000) ($2,300,000)
( ) indicates a decrease/negative
PURPOSE OF MEASURE: The purpose of HB 27 is to provide a sales and use tax exemption for
feminine hygiene products, including tampons, panty liners, menstrual cups, sanitary napkins, and other
similar tangible personal property designed for feminine hygiene in connection with the human menstrual
cycle. The effective date of the Act is August 1, 2022.
FISCAL EXPLANATION :
Staff used data from the Bureau of Labor Statistics’ 2020 Consumer Expenditure Survey (CES) to
estimate the potential fiscal impact of exempting from the sales tax the products in HB 27. Additionally,
tax expenditure estimates related to sales tax exemptions of feminine hygiene products from Connecticut,
Florida, Minnesota, New Jersey, and New York, after adjusting for differences in tax rates and
populations, were used to estimate spending on the exempted products in Kentucky.
The CES contains average expenditure data on a household’s spending on feminine hygiene products,
although these products are included in a larger spending category that contains other personal hygiene
products. An adjustment was made in an effort to isolate only the portion of the category that is
attributable to feminine hygiene products.
This memo does not consider any behavioral effects that may occur because of the proposed exemption,
although it is expected that these impacts would be small. To the extent that spending in Kentucky on
products in HB 27 differs from the national spending estimates from the CES, or spending by residents in Page 2 of 2 LRC 2022-BR142-HB27
the states used in this analysis, these estimates may over or underestimate the true fiscal impact. Finally,
all household spending amounts were adjusted for inflation.
The exemption is expected to decrease General Fund sales tax collections by $1.9 million in FY 2023 and
$2.3 million in FY 2024.
DATA SOURCE(S): LRC Staff
PREPARER: Katy Jenkins NOTE NUMBER: 153 REVIEW: JAB DATE: 3/21/2022