AN ACT relating to sales and use tax exemptions for menstrual discharge collection devices.
Summary
HB123 amends Kentucky’s sales and use tax law to create a temporary exemption for “menstrual discharge collection devices.” The bill defines that category broadly to include tampons, panty liners, menstrual cups, pads, period underwear, period swimwear, period running shorts, period sleep shorts, and similar products designed for use in connection with the human menstrual cycle. The exemption would apply to sales or purchases made on or after July 1, 2025, and before July 1, 2029.
The bill also requires the Department of Revenue to report annually to the Interim Joint Committee on Appropriations and Revenue on the amount of the exemption claimed in the prior fiscal year and the cumulative amount claimed. In addition, HB123 amends Kentucky’s tax confidentiality statute to expressly allow the Department of Revenue to share information with the Legislative Research Commission for purposes of administering and evaluating this new exemption.
Impact
HB123 would modify KRS 139.480 by adding a new sales and use tax exemption for menstrual discharge collection devices, temporarily removing those items from taxable retail sales, use, storage, and consumption during the stated four-year period. It would also add a reporting requirement tied to the exemption, creating an ongoing fiscal monitoring obligation for the Department of Revenue. Finally, the bill updates KRS 131.190 to permit confidential tax information to be shared with the Legislative Research Commission for oversight of the exemption, affecting the administration of tax data and legislative review.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the bill appears to be framed as a targeted consumer-tax relief measure with a public-health and equity rationale. The structure of the bill suggests a generally supportive policy approach toward reducing the cost of menstrual products and tracking the fiscal impact over time. No recorded opposition or formal vote history is provided in the materials, so the overall sentiment cannot be measured from debate or roll-call data.
Contention
The main potential point of contention is fiscal: the bill creates a tax exemption for a defined set of products and therefore reduces sales tax revenue, which is why it includes annual reporting on claimed exemption amounts. Another possible issue is scope and classification, since the definition covers both traditional menstrual products and certain clothing items marketed specifically for menstrual use, which could raise questions about what products qualify. The temporary sunset date may also reflect compromise between supporters seeking relief and lawmakers concerned about long-term revenue effects.