Jun 1, 2022 - News

Denver may eliminate sales tax on diapers

A graphic showing a white diaper with green dollar signs printed all over it.

Illustration: Brendan Lynch/Axios

Diaper sales might soon be tax-free in the city of Denver.

Driving the news: Aurora was the first city to enact such a law in Colorado when the City Council voted in April to drop its 3.75% sales tax on the products. That law goes into effect on Wednesday.

Why it matters: With inflation driving prices for daily expenses through the roof, eliminating the sales tax for these essential products will help the city's low-income residents, Denver council member Jolon Clark told Axios Denver.

  • "Inflation has skyrocketed and with COVID and everything, it seemed like a great time," Clark added.

Details: The bill, if passed, would remove the 4.81% sales tax in Denver from both child and adult diaper products.

  • The measure moved out of committee on Tuesday and will be considered by the full council this month.

Flashback: This isn't the first time Denver lawmakers considered sales tax exemptions for essential products: Clark in 2019 led the successful efforts to eliminate sales tax on feminine hygiene products, including tampons.

  • Other goods like food and water are also exempt.
  • Aurora also exempts feminine hygiene products from sales tax.

The big picture: Denver follows in the footsteps of other cities and states, as Florida this summer will eliminate sales tax on diapers starting July 1 for one year. States including California, Massachusetts, Minnesota and New York already have tax exemptions on diapers, according to the National Diaper Bank Network.

What's next: If passed, the law would go into effect in Denver on Oct. 1.


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