Diaper Sale Gross Receipts
The proposed bill is expected to impact state taxation laws significantly. If enacted, it will amend Section 7-9-120 of the New Mexico tax code, enabling taxpayers to deduct income from the sale of the specified items from their gross receipts. This change is intended to reflect a growing recognition of the necessity of these products in daily life, thereby fostering public awareness of issues related to health and hygiene.
House Bill 222, introduced in the New Mexico Legislature, aims to create a gross receipts tax deduction for the sale of diapers and feminine hygiene products. This legislation seeks to alleviate the financial burden on families and individuals by exempting these essential items from gross receipts taxes, thereby promoting accessibility and affordability. The bill outlines specific definitions for 'diapers' and 'feminine hygiene products', seeking clarity on what items are eligible for the tax deduction.
As with many tax-related legislative measures, HB222 may face scrutiny regarding its fiscal implications. Supporters of the bill argue that tax benefits for essential goods like diapers and feminine hygiene products are crucial for families, particularly those with lower income. However, opponents might argue about potential revenue losses for the state stemming from these deductions and the necessity of evaluating the overall economic impact of such tax exemptions.