HB438 Alabama 2023 Session

Summary

Primary Sponsor

Neil RaffertyRepresentative

Democrat

Session

Regular Session 2023

Title

To amend Section 40-23-4, as last amended by Act 2022-291, Act 2022-293, Act 2022-373, and Act 2022-199, Code of Alabama 1975, relating to sales tax exemptions; to provide for a sales and use tax exemption for certain purchases of diapers; to provide for a sales and use tax exemption for certain purchases of menstrual hygiene products; to provide for definitions; and to provide for rulemaking authority.

Summary

HB438 would exempt the sale and use of diapers and menstrual hygiene products for personal use from Alabama's sales tax, with definitions and a rulemaking plan for implementation.

What This Bill Does

Exempts the purchase of diapers, menstrual hygiene products, or both for personal use from the Alabama sales and use tax. Defines what counts as a diaper and what counts as a menstrual hygiene product to clarify coverage. Grants the Alabama Department of Revenue authority to adopt rules and forms to implement the exemption, with an effective date of September 1, 2023.

Who It Affects

• Consumers who buy diapers or menstrual hygiene products for personal use will not pay state sales tax on those items.
• Retailers and sellers of diapers and menstrual hygiene products must apply the exemption when collecting tax and adjust their systems accordingly.
• The Alabama Department of Revenue will issue rules, forms, and guidance to implement and administer the exemption.

Key Provisions

• Adds a personal-use diaper and menstrual hygiene products exemption to Section 40-23-4, covering sales and use tax.
• Provides definitions: a diaper is an absorbent diaper or undergarment for incontinence in adults or for children; a menstrual hygiene product includes tampons, pads, sanitary napkins, panty liners, sponges, and cups.
• Authorizes the Alabama Department of Revenue to adopt rules and necessary forms to effectuate the exemption.
• Effective date: September 1, 2023.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.