Missouri consumers will save some money on essential hygiene products after a tax cut took that effect Thursday.
Diapers, period products and incontinence supplies are now exempt from local and state sales tax under a new Missouri law.
The tax cut will be a relief for thousands of families in the state struggling to afford basic necessities, said Muriel Smith, the executive director of the St. Louis Area Diaper Bank.
“That additional ‘luxury tax', which was 4.225%, is pennies for a lot of us, but if you're already struggling to afford other things, it's really not pennies for the people that we are serving,” Smith said.
The organization distributes nearly 3 million diapers and over 800,000 period supplies every year, which Smith said shows how expensive these hygiene products are.
Missouri joins 22 other states that do not tax essential hygiene products, according to the National Diaper Bank Network.
After several failed attempts in previous years, the Missouri legislature passed a sweeping tax bill in May that cut the hygiene product tax, among other changes
Smith and other advocates for the tax cut say it took years to educate Missouri lawmakers about the importance of reducing taxes on hygiene products.
“We have been so close a few times, and it was disheartening when it did not pass for a couple of years in a row,” Smith said. “So we are very excited and relieved that we finally were able to get it passed this year.”
The state estimated that its general revenue fund will lose up to $33 million a year because of the tax cut. Local governments across Missouri are expected to lose up to $47 million a year, according to a fiscal note released in June.
But that revenue loss doesn’t worry Trish Vincent, who directs the Missouri Department of Revenue.
“This was a good bill. This was signed by the governor and will benefit families. It will benefit older individuals, you know, young families, and so it's a positive,” Vincent said.
Vincent said people will likely spend the extra dollars on other items, putting the money back into the market.
“It's a necessity. It's not a want,” Vincent said. “These are things that everyday people use every day, and so it's important to make sure that we are looking out for our Missouri families out there.”
The sales tax exemption is automatic and applies to the following items bought in a Missouri store or delivered from an out-of-state online retailer to a Missouri address:
- Baby and adult diapers
- Period products including tampons, pads, liners, cups and period underwear.
- Incontinence products such as protective undergarments, pads, liners, external catheters and underpads.
