HB1016
To Create A Sales And Use Tax Exemption For Menstrual Discharge Collection Devices; To Create A Sales And Use Tax Exemption For Diapers; And To Create A Sales And Use Tax Exemption For Certain Items Related To Breastfeeding.
AI-Generated Summary
This bill proposes to amend Arkansas sales and use tax laws by creating new exemptions for specific essential items. It aims to exempt menstrual discharge collection devices, including tampons, pads, menstrual cups, and period underwear, from sales and use taxes. Additionally, the bill seeks to exempt both children's and adult diapers from these taxes. The legislation also introduces a sales and use tax exemption for items related to breastfeeding. This includes breast pumps, associated collection and storage supplies such as bottles, tubing, and storage bags, as well as baby bottles, nipples, and sterilizers. The stated purpose is to provide relief and reduce the financial burden associated with these products. The exemptions would become effective on the first day of the calendar quarter following the act's passage.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be individuals and families who regularly purchase menstrual hygiene products, diapers, and breastfeeding supplies. This includes menstruating individuals of all ages, parents of infants and young children who use diapers, and individuals who are breastfeeding. Businesses that manufacture, distribute, or sell these exempted items might also see increased sales volume due to reduced consumer costs, although their profit margins on these specific items could be affected by the tax exemption.
Who Might Suffer?
The primary entities that could be negatively impacted by this bill are state and local governments in Arkansas due to a reduction in tax revenue. This loss of revenue could potentially affect the funding available for public services and programs. Retailers who sell these items will no longer collect sales tax on the exempted products, which could slightly alter their operational accounting, but the primary financial impact is on government revenue streams.