New tax exemption for menstrual products in Alabama begins Monday

Alabama Implements Tax Exemptions for Essential Products

Alabama’s new tax exemptions for menstrual products and other family necessities take effect on Monday, marking a significant shift in the state’s approach to these essential items.

Beginning September 1, a 4% sales tax exemption will be applied to tampons, pads, menstrual cups, obstetric supplies, as well as baby formula, bottles, wipes, breast milk pumps, diapers, and maternity wear.

It’s important to note that this exemption is limited to state-level sales taxes. Local counties and municipalities can still impose their own sales taxes unless they decide to pass an ordinance to extend this exemption.

This legislative measure, backed by HB152 and sponsored by D-Birmingham president Neil Rafferty, was passed earlier this year. Rafferty described it as “a huge victory for Alabama’s working families.” The bill received unanimous approval in the House back in March and has attracted bipartisan support throughout its journey.

During the discussions, R-Leesburg president Ginny Shaver proposed an amendment to include adult diapers in the legislation.

“You know what I know about women, children, and seniors,” Shaver remarked.

The Alabama Senate unanimously approved the bill in May, sending it to Governor Kay Ivey, who signed it later that month.

Legislative analysts project that this change will result in an annual cost of approximately $13 million, but many view this budget impact as a reasonable trade-off for the financial relief it will provide families.

Courtney Roark, director of policy and movement building for Alabama, United for Reproductive and Gender Equality, emphasized that these tax cuts are integral to a family-first agenda.

“There shouldn’t be a dilemma between affording food, rent, and essential healthcare items like tampons and diapers,” Roark stated. “Everyone should be able to meet their health, safety, and family needs without compromising their financial security. This is a remarkable victory that offers considerable economic relief to young people attempting to support families in Alabama.”

Along with the removal of the tax, lawmakers have also approved a gradual reduction of the state grocery tax and an expansion of paid parental leave for teachers and state employees. Collectively, these initiatives aim to alleviate economic challenges for Alabama households.