NC House passes bill to repeal sales tax on tampons, diapers

North Carolina lawmakers are moving forward with an effort to repeal sales taxes on baby wipes, diapers, tampons and other hygiene products. 

The House of Representatives voted unanimously Tuesday to pass House Bill 1200, which lawmakers call the “Tax-Free Family Essentials Act.” The bill needs approval next from the Senate before it can go to Gov. Josh Stein. 

The bill — which was fast-tracked to the House floor after receiving a favorable report in a committee Tuesday morning — would lift sales taxes on feminine hygiene products, which it defines as tampons, panty liners, menstrual cups, sanitary napkins, “and other similar tangible personal  property designed for feminine hygiene in connection with the human menstrual cycle.” The bill would also exempt diapers and baby wipes from sales taxes. 

The state imposes a sales tax of 4.75% but many North Carolinians pay closer to 7% when county-level sales taxes are included.  

The proposal is making its way through the North Carolina General Assembly the same week legislators are expected to vote on a spending plan for the next two fiscal years. The state’s annual budget is more than $34 billion.

Exempting baby wipes, diapers and feminine products from sales taxes would reduce state revenues by about $50 million annually and local revenues by about $25 million annually starting in fiscal year 2027-28, according to an analysis by the legislature’s fiscal research staff and provided to WRAL by Rep. Michael Schietzelt, the Wake County Republican who filed the bill.

Democrats in the GOP-controlled North Carolina General Assembly have previously proposed similar bills to no avail. Schietzelt’s bill includes more than 30 co-sponsors, a third of which are Republicans. 

Some state lawmakers are reluctant to relinquish any sales tax revenue, Schietzelt told WRAL. But legislative leaders’ consideration of a proposal that included $500 million in state funds for a potential Major League Baseball stadium shows the state has “room to give back” money to families to buy essentials, Schietzelt said. 

The proposal to repeal taxes for diapers and baby wipes would “eliminate barriers for people who want to choose life for their children,” said Schietzelt, who referred to himself as a “pro-life” Republican. He told committee members: “It’s pro-affordability. It’s pro-equality and it’s pro-family.” 

Schietzelt’s bill initially called for repealing sales taxes on prenatal vitamins and over-the-counter children’s medications as well. Schietzelt said he plans to remove those sections of the bill because they conflict with a regional agreement North Carolina entered years ago to minimize costs and administrative burdens on retailers that collect sales taxes.