North Carolina HB 1200: Tax-Free Family Essentials Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 3
HOUSE BILL 1200
Committee Substitute Favorable 6/30/26
Third Edition Engrossed 6/30/26

Short Title: Tax-Free Family Essentials Act. (Public)
Sponsors:
Referred to:
May 5, 2026
*H1200-v-3*
A BILL TO BE ENTITLED 1
AN ACT TO EXEMPT DIAPERS, BABY WIPES, AND FEMININE HYGIENE PRODUCTS 2
FROM THE SALES TAX. 3
The General Assembly of North Carolina enacts: 4
SECTION 1.(a) G.S. 105-164.3 reads as rewritten: 5
"§ 105-164.3. Definitions. 6
The following definitions apply in this Article: 7
... 8
(21a) Baby wipes. – Disposable, pre-moistened tissues, towelettes, or wipes that are 9
marketed and labeled by the manufacturer primarily for use on the skin of 10
babies or toddlers excluding items that meet the definition of an 11
"over-the-counter drug." 12
... 13
(88) Feminine hygiene products. – Tampons, panty liners, menstrual cups, pads, 14
and other similar tangible personal property designed for use in connection 15
with the human menstrual cycle but does not include "grooming and hygiene 16
products." 17
... 18
(94) Grooming and hygiene products. – Soaps and cleaning solutions, shampoo, 19
toothpaste, mouthwash, antiperspirants, suntan lotions, and sunscreens, 20
regardless of whether the items meet the definition of "over-the-counter 21
drugs." 22
...." 23
SECTION 1.(b) G.S. 105-164.13 reads as rewritten: 24
"§ 105-164.13. Retail sales and use tax. 25
The sale at retail and the use, storage, or consumption in this State of the following items are 26
specifically exempted from the tax imposed by this Article: 27
... 28
(13d) Sales of diapers or incontinence underpads on prescription by an enrolled 29
State Medicaid provider for use by beneficiaries of the State Medicaid 30
program when the provider is reimbursed by the State Medicaid program or a 31
Medicaid managed care organization, as defined in 42 U.S.C. § 32
1396b(m).underpads. 33
... 34
(76) Sales of baby wipes. 35

General Assembly Of North Carolina Session 2025
Page 2 House Bill 1200-Third Edition
(77) Sales of feminine hygiene products." 1
SECTION 2. This act becomes effective April 1, 2027, and applies to sales made on 2
or after that date. 3