Alabama House Passes Bill to Cut Sales Tax on Essential Family and Hygiene Products

The legislation applies only to state-level sales tax, meaning local governments can still impose their own taxes unless they choose to opt into the exemption.

Alabama House Passes Bill to Cut Sales Tax on Essential Family and Hygiene Products
The Bill will Cut Sales Tax on Essential Family and Hygiene Products - Stock Photo

The Alabama House of Representatives has approved a measure to eliminate the state’s 4% sales tax on critical everyday items, including diapers, baby formula, maternity clothing, and menstrual hygiene products. House Bill 152 (HB152), introduced by Representative Neil Rafferty (D-Birmingham), is expected to provide Alabama families with an estimated $13 million in annual tax relief.

The legislation applies only to state-level sales tax, meaning local governments can still impose their own taxes unless they choose to opt into the exemption.

During the debate, Representative Ginny Shaver (R-Leesburg) introduced an amendment to expand the tax exemption to include adult diapers. Speaking on the House floor, Shaver said, "You know I'm all about women, children, and seniors. I have an amendment to include seniors with diapers," Alabama Reflector reported. The House unanimously approved the change.

Despite broad bipartisan support, some lawmakers voiced concerns about how the measure might impact state revenue. Representative Mary Moore (D-Birmingham) warned against excessive tax cuts, telling Alabama Political Reporter, "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."

According to fiscal estimates, removing the tax on these products will reduce the Education Trust Fund’s revenue by $10.5 million, with an additional $2.5 million impact from the adult diaper exemption. However, supporters argue that the fund, which currently sits at $9.2 billion, can absorb the reduction.

House Speaker Nathaniel Ledbetter (R-Rainsville) highlighted the broader effort to provide economic relief. Ledbetter told Alabama Reflector, "We had five tax cuts this week alone. So the people of Alabama are going to start seeing relief that they hadn't had, and certainly we're proud to be able to do that."

Now heading to the Senate for consideration, the bill, if signed into law, would take effect on September 1, 2025, and remain in place until 2028.

Supporters argue that removing sales tax on these necessities will ease financial burdens for families and seniors. Representative Susan DuBose (R-Hoover) told Alabama Daily News, "We want to help young families and our seniors, and this bill covers both those areas. Really, these products are necessities that are not inexpensive, and I think it's important to try to help considering the inflation we've had lately."

With strong bipartisan momentum, supporters of the bill remain hopeful that the Senate will pass it, allowing Alabama residents to benefit from the tax relief on essential goods.

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