COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0743H.01I Bill No.:HB 633 Subject:Taxation and Revenue - General; Taxation and Revenue - Sales and Use;
Department of Revenue; Health Care
Type:Original Date:January 15, 2025Bill Summary:This proposal changes the laws regarding the taxation of feminine hygiene
products and diapers.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028
General Revenue
Could exceed
($18,562,799)*
Could exceed
($27,844,199)
Could exceed
($27,844,199)
Total Estimated Net
Effect on General
Revenue
Could exceed
($18,562,799)*
Could exceed
($27,844,199)
Could exceed
($27,844,199)
*The fiscal impact for FY2026 is lesser because FY2026 is a partial year (8 months)
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 0743H.01I
Bill No. HB 633
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on FTE 000
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 0743H.01I
Bill No. HB 633
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FISCAL ANALYSIS
ASSUMPTION
Section 144.016 - Reduced Sales Tax for Certain Personal Care Products
Officials from the Office of Administration - Budget and Planning (B&P) note beginning
October 1, 2025, this proposal would reduce the sales tax rate on diapers and feminine hygiene
products.
Under this proposal, such items would be taxed at the same rate as food. B&P notes that food is
exempt from the 3% state general revenue sales tax, but is still subject to the 1% education,
0.125% conservation, 0.1% DNR, and local sales taxes.
Feminine Hygiene Products
Based on information from multiple sites, B&P estimates that women purchase an average of 6.8
to 7.2 boxes of tampons (average price $7 to $15) and 1.7 to 1.8 boxes (average price $6 to $15)
of pads and liners per year (using the average cycle length of 28 to 30 days). B&P was also able
to determine that the average age for menstruation is 12-51 and based on data provided by the
United State Census 2023 population estimates (the most recent complete year available), there
are approximately 1,565,677 woman between those ages residing in Missouri.
Therefore, B&P estimates total sales of $89,953,942 ($57.45 cost per year x 1,565,677 women)
to $212,601,230 ($135.79 cost per year x 1,565,677 women) may be impacted by this proposal.
B&P estimates that this provision could reduce GR by $2,698,618 to $6,378,037 annually.
Diaper (Child) Sales Tax Exemption
Based on research, B&P found that the average amount spent on diapers was $1,000 during the
first year and then $500 to $900 per year until toilet trained. Based on information from the
University of Michigan Hospital, the average age until children are toilet trained is 2.5 years.
Based on information provided by the United State Census 2023 population estimates (the most
recent complete year available), there were approximately 206,138 children living in Missouri
ages 0-2 years old, with 67,996 being less than one year old.
Therefore, B&P estimates total sales of $137,067,000 [(67,996 infants x $1,000 cost per year) +
(138,142 toddlers x $500 cost per year)] up to $184,035,280 [(67,996 infants x $1,000 cost per
year) + (138,142 toddlers x $900 cost per year)] may be impacted by this proposal.
B&P estimates that this provision could reduce GR by $4,112,010 to $5,521,058 annually. L.R. No. 0743H.01I
Bill No. HB 633
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Diaper (Adult) Sales Tax Exemption
According to research completed by the CDC, approximately 25% of adults age 65 and up had
moderate to severe urinary incontinence and 8% had moderate to severe bowel incontinence.
B&P notes that according to the United State Census 2023 population (the most recent complete
year available) estimates there were approximately 1,136,615 individuals residing in Missouri
age 65 and over.
Based on these numbers, B&P estimates that approximately 284,154 (1,136,615 x 25%)
individual age 65 and over would utilize adult urinary incontinence diapers. B&P further
estimates that approximately 90,929 (1,136,615 x 8%) individuals residing in Missouri age 65
and over would utilize adult bowel incontinence diapers.
Based on information from a budgeting website, the average cost for urinary incontinence
diapers is $100 to $240 per month, for a yearly cost of $1,200 to $2,880. Further information
from the budgeting website lists the average monthly bowel incontinence diapers is $70 to $210
per month, for a yearly cost of $840 to $2,520.
B&P estimates that total annual sales for urinary incontinence adult diapers could be
approximately $340,984,500 (284,154 people x $1,200 annual cost) up to $818,362,800 (284,154
people x $2,880 annual cost).
B&P further estimates that the total annual sales for bowel incontinence adult diapers could be
$76,380,528 (90,929 people x $840 annual cost) up to $229,141,584 (90,929 people x $2,520
annual cost).
Therefore, B&P estimates total sales of $417,365,028 ($340,984,500 urinary incontinence +
$76,380,528 bowl incontinence) up to $1,047,504,384 ($818,362,800 urinary incontinence +
$229,141,584 bowl incontinence) may be impacted by this proposal.
B&P estimates that this provision could reduce GR by $12,520,951 to $31,425,132 annually.
Summary
B&P estimates that this proposal could reduce TSR and GR by $12,887,719 to $28,882,818 in
FY26. Once fully implemented, this proposal could reduce TSR and GR by $19,331,579 to
$43,324,227 annually.
Table 1: Loss to GR by ProvisionState FundFY26FY27+General RevenueLowHighLowHighDiapers - Child($2,741,340)($3,680,706)($4,112,010)($5,521,058)Diapers - Adult($8,347,301)($20,950,088)($12,520,951)($31,425,132)Feminine Hygiene
Products($1,799,079)($4,252,025)($2,698,618)($6,378,037) L.R. No. 0743H.01I
Bill No. HB 633
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Total GR Loss($12,887,719)($28,882,818)($19,331,579)($43,324,227)
Officials from the Department of Revenue (DOR) note beginning October 1, 2025, the tax
levied and imposed under Chapter 144 on all retail sales of kid’s diapers and adult diapers shall
be reduced to the same tax rate as on food. The current state sales tax rate is 4.225%. The
current state tax rate is distributed as:
General Revenue is 3%
School District Trust Fund is 1% (Section 144.701)
Conservation Commission Fund is .125% (Article IV, Section 43(a))
Parks, Soil & Water Funds .1% (Article IV, Section 47(a))
By lowering the state sales tax rate to that on food, this proposal would eliminate the 3% general
revenue state sales tax.
Kid Diapers
The Department notes that the average child wears diapers for three years before becoming fully
toilet trained. DOR found the price of diapers vary from $0.16 per diaper for generics to $0.60
for name brand. Prices of diapers also depend on the size of the diaper. Estimates by various
children’s organizations indicate that an infant in the first year of life goes through 2,500 diapers.
The next two years as toddlers they go through 1,500 diapers annually.
Wearing DiaperHow Many
Low Price per
Diaper
High Price
per Diaper
Total Cost
Low
Total Cost
High
First Year (Size 1)2,5000.160.31400775Second Year (Size 3)1,5000.180.38270570Third Year (Size 5)1,5000.290.60435900
Based on information from the MO Dept of Health & Senior Services, the average number of
children born in the last three years, is 69,167. Given that 3 years’ worth of children are wearing
diapers in any one year (1 set of infants and 2 sets of toddlers) DOR estimates the following:
Births Annually69,167# of kids in
Diapers Annually207,500
# of Diapers
Annually
infant172,916,667
toddler (2yrs)207,500,000 total (kids *
diapers)380,416,667 L.R. No. 0743H.01I
Bill No. HB 633
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Since this would start October 1, 2025, and sales tax is remitted one month behind collection,
this would result in 8 months collected in FY 2026. This would result in a loss to general
revenue as follows:
Fiscal YearLow ImpactHigh ImpactFY 2026 (8
month )($1,528,583)($3,105,583)
FY 2027($2,292,875)($4,658,375)FY 2028($2,292,875)($4,658,375)
Adult Diapers
Approximately one third of adults aged 65 and older have moderate to severe urinary
incontinence and 6 percent had moderate to severe bowl incontinence. According to the United
State Census Bureau 2020 population report, 1,077,757 individuals residing in Missouri were 65
or over. The Department notes that it is estimated that people with minor to moderate
incontinence wear approximately 4 diapers per day while those with those with full urinary or
fecal incontinence wear 6 diapers per day. The Department estimates that approximately
290,994 individuals aged 65 and over would utilize the four adult urinary incontinence diapers
while 64,665 would wear 6 adult diapers daily.
The average cost for urinary incontinence diapers is $1.33 per diaper.
Number of
people
# of
Diapers
Days per
year
Total
Diapers
per personPrice per diaperTotal Sales
290,994436514601.33565,052,90764,665636521901.33188,350,969 753,403,875
Since this would start on October 1, 2025, and sales tax is remitted one month behind
implementation, this would result in 8 months collected in FY 2026. This would result in a loss
general revenue as follows:
Fiscal YearImpactFY 2026 (8
months)($15,068,078)
FY 2027($22,602,116)FY 2028($22,602,116)
Section 144.016 Feminine Hygiene Sales Tax at Food Rate
DOR notes this proposal will reduce the sales tax on feminine hygiene products to the same rate
as food. Therefore, the general revenue 3% portion will no longer be collected. L.R. No. 0743H.01I
Bill No. HB 633
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Information from numerous sources indicates that a woman menstruates 500 times in her
lifetime, usually between the ages of 12-51. The average length of a period is 3-7 days. Sources
indicate that a woman uses the following:
Number per
cycle
Number per
year
Number
in BoxBoxes per year
Tampons20260367.22Pads/Panty
Liners565361.81
Note a woman has 13 cycles a year (28 day cycle)/352 days a year.
The price per tampons and pads vary. DOR used a low and high price when determining the
fiscal impact.
Price LowPrice High
Total Cost
Low
Total Cost
High
Tampons$7.00 $10.00 $50.56 $72.22 Pads/Panty
Liners$7.00 $10.00 $12.64 $18.06
$63.19 $90.28
Using information from the US Census Bureau (2020), DOR calculated the number of women
having a period in Missouri (those between 12-51) as 1,555,626.
Total Cost
Low
Total Cost
High
Total estimated cost per year$98,306,921 $140,438,458
This proposal begins October 1, 2025 (FY 2026). Sales tax is remitted one month behind
collection and therefore, this will impact state and local revenue for only 8 months in FY 2026.
FY 2026 (8 months)FY 2027 + Tax Rate LowHigh LowHighGeneral Revenue3.00%($1,966,138)($2,808,769)($2,949,208)($4,213,154)
Summary of All Sales Tax Exemptions
This proposal will result in the need for DOR to do one time computer programming changes
($1,832) and form changes ($2,200). Therefore, this is estimated to cost $4,032. Notification
through various means will have to occur to notify the vendors to stop collecting tax on diapers.
This will reduce general revenue by the following: L.R. No. 0743H.01I
Bill No. HB 633
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General
RevenueFY 2026FY 2027 +
LowHighLowHighChild
diapers($1,528,583)($3,105,583)($2,292,875)($4,658,375)
Adult
diapers($15,068,078)($15,068,078)($22,602,116)($22,602,116)
Feminine
Hygiene($1,966,138)($2,808,769)($2,949,208)($4,213,154)
Total GR
Loss($18,562,799)($20,982,430)($27,844,199)($31,473,645)
Oversight notes officials from B&P and DOR have conducted independent research and both
assume the proposal will have a direct fiscal impact on state revenues. Oversight does not have
any information to the contrary. Therefore, Oversight will reflect a fiscal impact that could
exceed DOR’s estimated impacts in the fiscal note.
FISCAL IMPACT – State GovernmentFY 2026
(8 Mo.)
FY 2027FY 2028GENERAL REVENUE FUNDRevenue Reduction - §144.016 -
Reduced sales tax for child diapers
- p. (6)
Could exceed
($1,528,583)
Could exceed
($2,292,875)
Could exceed
($2,292,875)
Revenue Reduction - §144.016 -
Reduced sales tax for adult diapers
- p. (6)
Could exceed
($15,068,078)
Could exceed
($22,602,116)
Could exceed
($22,602,116)
Revenue Reduction - §144.016 -
Reduced sales tax for feminine hygiene
products - p. (8)
Could exceed
($1,966,138)
Could exceed
($2,949,208)
Could exceed
($2,949,208)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND
Could exceed
($18,562,799)
Could exceed
($27,844,199)
Could exceed
($27,844,199)
FISCAL IMPACT – Local GovernmentFY 2026
(8 Mo.)
FY 2027FY 2028$0$0$0 L.R. No. 0743H.01I
Bill No. HB 633
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FISCAL IMPACT – Local GovernmentFY 2026
(8 Mo.)
FY 2027FY 2028
FISCAL IMPACT – Small Business
Certain small businesses that sell feminine hygiene products and/or diapers could be impacted by
this proposal.
FISCAL DESCRIPTION
The proposed legislation changes the laws regarding the taxation of feminine hygiene products
and diapers.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Revenue
Office of Administration - Budget and Planning
Julie MorffJessica HarrisDirectorAssistant DirectorJanuary 15, 2025January 15, 2025