HB 1307
In CommitteeHouse
Child care product sales tax
Easing the financial burden on families by removing sales and use tax on diapers and essential child care products.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill removes sales and use tax from diapers and essential child care products—including baby clothing, car seats, cribs, and adult incontinence supplies—to reduce financial strain on families and caregivers. It defines qualifying items and applies the exemption starting January 1, 2026.
- Exempts diapers (for infants, young children, and adults needing incontinence products) from Washington’s sales and use tax beginning January 1, 2026.
- Exempts essential child care products—such as car seats, baby cribs, strollers, baby wipes, breast pumps, bottles, pacifiers, child safety gates, and clothing and shoes size 5T/13T and smaller—from sales and use tax if labeled or marketed for children under age 5.
- Requires the Department of Revenue to adopt rules and publish a public list of qualifying products to help retailers and consumers identify exempt items.
- Clarifies that the exemption applies to both sales and use tax (i.e., covers purchases made out-of-state but used in Washington).
- Includes adult incontinence products in the definition of exempt items, recognizing the financial burden on families caring for vulnerable adults.
Who is affected
- Families with infants and young children — Families with infants and young children under age 5 will pay less for essential items like diapers, car seats, clothing, and baby gear because sales tax will no longer apply to these purchases.
- Caregivers of adults needing incontinence products — Households caring for adults who require incontinence products (e.g., due to aging, disability, or illness) will benefit from the tax exemption on adult diapers and related hygiene items.
- Low-income and single-parent households — Low-income and single-parent households, who spend a large share of income on child care essentials, will see direct savings that help stretch limited budgets.
- Retailers selling child care and hygiene products — Retailers will need to adjust their point-of-sale systems to stop collecting sales tax on qualifying items starting January 1, 2026, and may need to update product labeling or systems to identify exempt items.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Diaper tax exemption directly reduces out-of-pocket costs for all families purchasing diapers—including low-income, single-parent, and households caring for disabled or elderly adults—where diaper costs can exceed $100/month per person.
FinancialPeopleRef: Sec. 2(1), Sec. 2(2)(a)Exempting car seats, cribs, and safety gates increases affordability of life-saving equipment, potentially improving child safety outcomes, especially for families who might otherwise delay or forgo purchases due to cost.
Public SafetyPeopleRef: Sec. 2(2)(ii), (ix), (xii)Exempting breast pumps, bottles, and wipes supports infant nutrition and hygiene, reducing risks of infection and supporting maternal health—particularly for low-income and working mothers without employer-sponsored lactation benefits.
HealthcarePeopleRef: Sec. 2(2)(viii), (vi)Inclusion of adult incontinence products recognizes intergenerational caregiving burdens and helps low-income households supporting aging or disabled relatives avoid catastrophic out-of-pocket costs for essential hygiene.
HousingPeopleRef: Sec. 2(2)(a), (ii)By reducing financial stress on caregivers, the bill may indirectly support early childhood development and school readiness, especially for children in under-resourced households who benefit from stable, stress-free home environments.
EducationPeopleRef: Sec. 2(3)
Potential Concerns (5)
The exemption excludes clothing and shoes only up to size 5T/13T, which excludes many toddlers and preschoolers (ages 3–5) whose families still face high childcare costs; this creates a coverage gap and limits savings for families with older young children.
FinancialPeopleRef: Sec. 2(2)(xii)The $120M revenue loss over two years reduces state funding available for public services—including early learning, health programs, and social safety nets—that many low-income families rely on, potentially offsetting some of the tax savings.
Public SafetyPeopleRef: Fiscal Impact (not in text but referenced in summary)The bill does not include essential housing-related items like play yards (though cribs are included), which are often used as sleep surfaces in small apartments—limiting support for low-income urban families who need safe sleep solutions.
HousingLean peopleRef: Sec. 2(2)(vii), (ix)The exemption applies only to products *labeled or marketed* for children under 5, meaning generic or unmarked items (e.g., generic wipes, secondhand bottles) may not qualify—disadvantaging budget-conscious or non-traditional caregivers who rely on cost-effective alternatives.
FinancialLean peopleRef: Sec. 2(2)(vi), (viii)Retailers—especially small, independent stores—must invest in POS updates and staff training to comply with product labeling verification, which may strain small businesses with limited resources, even if the compliance burden is modest overall.
Business & EmploymentLean peopleRef: Sec. 2(2)(xii)
Who Is Most Affected
Low-income families with children under 5—especially single-parent households—see the largest direct savings, as they spend a higher share of income on diapers and child essentials and are most sensitive to price changes.
Caregivers of adults with incontinence (e.g., elderly, disabled) benefit from reduced out-of-pocket costs, but the exemption’s narrow product definition may exclude some generic or non-marketed items they commonly use.
Retailers face modest compliance costs (e.g., POS updates, staff training), but large chains are better equipped than small businesses; however, the policy may increase foot traffic and volume, partially offsetting margin pressure.
State and local governments lose $120M over two years in sales tax revenue, which could reduce funding for early learning, health, and social services—potentially harming the same families the bill aims to assist.
Manufacturers of qualifying items benefit indirectly from increased demand, but the exemption does not require price reductions—so price-sensitive consumers may not see full savings unless retailers pass them through.