BISMARCK – A bill to exempt diapers from sales tax passed the North Dakota State Senate Monday.
House Bill 1177 seeks to exempt the purchase of children's diapers from the payment of sales tax. The bill received a Do Not Pass recommendation from the Senate Finance and Taxation committee by a vote of four to two, with the fiscal note around $1.7 million.
“When you look at an exemption and what’s the purpose of it, your committee has tried to hold fast to the policy of looking at exemptions that may bring business to the state, may be seen as an investment rather than seen as a carve out,” said Sen. Jordan Kannianen, R-Dis. 4, Stanley.
Kannianen said he and his wife thought of a rough estimate and figured they’d save about $200 a year with this exemption.
“If you want to talk about expenses for children there are certainly a lot of things that others could argue should be exempt,” said Kannianen.
“With the overturning of Roe versus Wade, it’s important that we as a state support new mothers and their families,” said Sen. Jeff Magrum, R-Dis. 8, Hazelton. “One practical and impactful way to do this is to exempt diapers from sales tax. Diapers are a necessity for families with young children and the expenses are unavoidable.”
Magrum said it’s estimated that over 43,000 North Dakota residents are under three years old, and 20% of those live in families earning between 100% and 200% of the federal poverty level. He said this would level the playing field for those families.
The bill passed by a vote of 28 to 19 and will be sent to the governor’s desk for approval.
