House Bill 26-002

This bill eliminates the state sales and use tax on two categories of essential goods: food for domestic home consumption and defined baby supplies. The bill adopts the existing statutory meaning of “food for domestic home consumption” and creates a clear definition for “baby supplies,” focusing on items primarily intended for the care and nourishment of children under age three. Covered baby supplies explicitly include diapers (disposable and reusable), baby wipes, infant formula, and baby food marketed for infants and toddlers.

The bill’s legislative declaration frames the exemption as a targeted cost-of-living and public health measure. It asserts that taxing necessities like food and infant-care items disproportionately burdens low- and moderate-income households, who spend a larger share of their income on essentials. By removing state taxation from these goods, the act aims to improve access to adequate nutrition and basic infant care, especially for families with young children and individuals on fixed or limited incomes, while emphasizing that the policy is meant to remain narrow and not expand into luxury or discretionary products.

Operationally, the exemption applies only to the state sales tax and state use tax beginning on the effective date. The measure explicitly preserves local control by stating that it does not require counties, municipalities, or other political subdivisions to exempt the same items from locally imposed sales or use taxes. In other words, the state portion is removed automatically, but local taxes may still apply unless a local government chooses to change its own tax code.

To ensure consistent administration, the bill authorizes the Department of Revenue to adopt rules to implement and enforce the exemptions, including clarifying eligible items and preventing abuse. The act takes effect after the standard post-adjournment period, but—if a veto petition is filed under Article II, Section 15 against the act or any part of it—implementation is delayed unless voters approve it at the November 2027 general election, in which case it becomes effective upon the Governor’s official declaration of the vote.