Senate Bill 1029 would exempt feminine hygiene products, diapers, and groceries from North Carolina sales tax, while also making related conforming changes to the state’s sales tax statutes. The bill defines feminine hygiene products and adds them to the list of items exempt from retail sales and use tax. It also revises existing diaper-related language and updates the food tax provisions so that food exempt from state sales tax would also be treated consistently under local sales tax rules.
In addition to the tax exemptions, the bill appropriates $1.6 million in nonrecurring General Fund money for fiscal year 2026-2027 to the North Carolina Association of Regional Councils of Governments. Those funds would be distributed equally among regional councils of government and used to educate constituents about available tax relief. The bill’s tax changes would take effect October 1, 2026, and the appropriation would take effect July 1, 2026.
Impact
The bill would amend several provisions in Chapter 105 of the North Carolina General Statutes governing sales and use tax, including the definitions section and the exemptions for retail sales, food, and local sales taxes. It would expand the list of tax-exempt items to include feminine hygiene products and would align local food tax treatment with the state exemption structure. The bill would affect consumers purchasing these essentials, retailers that collect sales tax, and local governments that rely on sales tax revenue, while also creating a new state appropriation for regional councils of government.
Sentiment
Based on the bill title and text, the measure appears framed as a consumer tax relief proposal aimed at working families and essential household goods. No committee transcripts or votes were provided, so there is no recorded debate or vote history to indicate formal support or opposition. The overall presentation suggests a policy intent that is likely to be broadly favorable to taxpayers and family-budget relief.
Contention
The main points of potential contention are fiscal and administrative rather than definitional. Exempting groceries, diapers, and feminine hygiene products would reduce sales tax collections for the state and local governments, which could raise concerns about revenue loss and budget impacts. The separate $1.6 million appropriation for public education on tax relief could also draw scrutiny as an additional spending item tied to the tax changes. No specific opposing arguments or sponsors were provided in the record, so any contention is inferred from the bill’s fiscal effects.