A House Finance Committee public hearing Feb. 7 opened on House Bill 1318, which would create a sales-and-use tax exemption for children's diapers beginning Jan. 1, 2026.

Christina King, staff to the committee, told lawmakers that diapers are generally subject to sales and use tax and that HB 1318 would add an exemption. King summarized the fiscal estimates on the committee’s electronic bill binder: DOR (listed in the briefing as DUR) projects a state general-fund decrease of about $4.3 million in fiscal 2026 (five months of collections) and $10.8 million in fiscal 2027 for a biennial total of roughly $15.1 million. Local revenue impacts were estimated at $1.6 million in fiscal 2026 and $5.0 million in fiscal 2027. The department also identified one-time biennial implementation costs (labor and computer changes) and ongoing outreach costs.

Representative Alicia Ruhl, the bill’s prime sponsor, told the committee she brought the measure after a constituent highlighted the burden diapers impose on young families. "Families need a break," Ruhl said, describing rising costs for rent, food and medical care and urging lawmakers to consider exempting diapers from sales tax as targeted relief.

Committee members asked no questions during the sponsor’s presentation. The chair closed the public hearing on HB 1318 and moved on to consider related bills later in the agenda.

Why it matters: diapers are a recurring, nonoptional household expense for families with infants; exempting them would reduce the state and local sales-tax base and require DOR rule changes and outreach. The bill, as drafted, applies to children’s diapers only; committee staff noted some medical programs already cover adult products, which the bill does not include.

Next steps: the bill remained at the hearing stage; staff flagged the fiscal-note figures and the need for rulemaking and outreach if the measure advances.