November 22, 2024
Tax

Making diapers tax free in Nevada


LAS VEGAS, Nev. (FOX5) – Diapers and incontinence products are a necessity for hundreds of thousands of Nevada families.

Question 5 asks voters to amend the Sales and Use Tax Act of 1955 to exclude diapers. It‘s passage would lower the cost of these essential items but would also lower the state’s sales tax income.

19 states already exclude diapers and incontinence products from their list of taxable items. In Nevada right now, shoppers pay between 6.8 and 8 percent depending on the area.

“We had a bunch of coworkers who also had babies before us who gifted us a bunch of their diapers because their babies ended up growing out of them relatively quickly,” said new dad Sam Farnsworth.

The average family uses about 200 diapers per child per month. That comes out to about $80 a year per child in diaper taxes.

The Nevada Taxpayers Association said the volume of people impacted adds a significant side effect.

“The impact is less dollars that would go to the state general fund for much needed services and less dollars that would be collect for the school districts, and yes, local governments,” said the President of the Nevada Taxpayers Association Yolanda King.

According to data in the Nevada Secretary of State’s 2024 Ballot Question Guide, “passage of Question 5 is anticipated to reduce sales tax revenues by at least $400 million between January 1, 2025, through the sunset date of December 31, 2050.”

The NTA says it does not oppose Question 5 but it does want voters to fully understand its impact.

If Question 5 passes, it will take effect in January 2025.



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