Exempts diapers and feminine hygiene products from state and local sales and use tax. (See Act) (EG -$13,000,000 GF RV See Note)
Impact
If enacted, SB 24 would not only exempt diapers and feminine hygiene products from state sales and use tax but also empower local political subdivisions to apply similar tax exemptions on local sales taxes. This legislative change aligns with existing exemptions for other necessary items such as food and prescription drugs, aiming to promote public health and provide financial relief for families purchasing these essential goods.
Summary
Senate Bill 24, presented by Senator Morrell, proposes a sales and use tax exemption for consumer purchases of diapers and feminine hygiene products in Louisiana. The bill seeks to alleviate financial burdens on families by removing state and local taxes on these essential items, categorized under personal use products. The intended effective date for the exemption is January 1, 2019, contingent upon the approval of a related constitutional amendment proposed in Senate Bill 27 during the 2017 Regular Session.
Sentiment
The sentiment around SB 24 is largely supportive, particularly amongst advocates for women's health and family welfare. Proponents argue that the bill addresses an essential public health issue, making necessary products more affordable for all individuals. However, there may be concerns regarding the state’s revenue, given the predicted impact of the exemption outlined as a potential loss of $13 million in general fund revenue.
Contention
The most notable point of contention surrounding SB 24 is the fiscal implication of tax exemptions on state revenue, especially as local governments have varying capacities to absorb the loss of sales tax income. While advocates emphasize the necessity of these products and the importance of keeping them affordable, some legislators may express caution about the broader implications this may have on state funding and resources allocated to other essential services.
Taxation, sales tax exemptions, sales and use tax exemption provided for certain purchases of diapers and feminine hygiene products, Sec. 40-23-4 am'd.