OFA Fiscal Note
OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
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sHB-6595
AN ACT EXEMPTING BABY DIAPERS FROM THE SALES TAX.
OFA Fiscal Note
Explanation
The bill results in no fiscal impact by exempting the sale of children's disposable or reusable diapers or diaper pads from the sales and use tax.
CGS 12-412(119) exempts clothing and footwear under $50 from the sales and use tax on and after July 1, 2015. The Department of Revenue Services qualifies children's diapers as clothing. As such, the items under the bill are scheduled to be exempt from the tax beginning on July 1, 2015.
The estimated revenue loss specifically to children's diapers under the statute is $4.3 million in both FY 16 and FY 17.
SB 946, An Act Concerning Revenue Items to Implement the Governor's Budget, eliminates the sales tax exemption for clothing and footwear under $50. This would include children's diapers.
The Out Years