Modifies provisions relating to tax incentives for certain hygiene products
Summary
SB95 creates a tax incentive program for donations to diaper banks and also lowers the state sales tax rate on certain hygiene products. Under the bill, taxpayers may claim a credit equal to 50% of contributions to qualifying diaper banks, subject to a $50,000 annual cap per taxpayer and a $500,000 statewide annual cap. The credit is nontransferable, may be carried forward one year if unused, and is available only for contributions of at least $100. The Department of Social Services would certify qualifying diaper banks, maintain a process for taxpayers to verify eligibility, and coordinate information sharing with the Department of Revenue.
The bill also adds a new sales tax provision that, beginning August 28, 2025, reduces the tax rate on retail sales of diapers, incontinence products, and feminine hygiene products to 1%. The revenue from that reduced rate would still go to the state general revenue fund. The bill defines the covered products and sets a sunset date for the tax credit program under Missouri’s sunset law, with the program expiring six years after the specified date unless reauthorized.
Impact
SB95 would amend Missouri tax law by repealing and reenacting section 135.621 and adding new section 144.022. It would create a new state income tax credit for donations to diaper banks, establish administrative duties for the Department of Social Services and Department of Revenue, and impose statewide limits on the total amount of credits issued. It would also change the sales tax treatment of diapers, incontinence products, and feminine hygiene products by setting a 1% rate for those items, affecting retailers, consumers, and state revenue collections.
Sentiment
The available record shows no committee transcript or recorded votes, so there is no direct evidence of debate, support, or opposition in the materials provided. Based on the bill’s subject matter, the measure appears designed as a targeted consumer relief and charitable support bill, suggesting a generally favorable policy purpose, but the official sentiment from legislative discussion cannot be determined from the provided context.
Contention
No specific points of contention are documented in the provided transcripts or votes. Potential issues that could arise from the bill’s structure include the fiscal effect of lowering the sales tax rate on selected hygiene products, the administrative burden of certifying diaper banks and tracking contributions, and the statewide cap and allocation rules for tax credits. Another possible point of discussion is whether the benefits are narrowly targeted enough and whether the sunset and cap provisions adequately limit state revenue exposure.