HB 1318
In CommitteeHouse
Children's diapers sales tax
Providing a sales and use tax exemption for children's diapers.
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 the state sales and use tax from children’s diapers, making them tax-free in Washington. It defines diapers broadly to include both reusable and disposable types for young children with incontinence.
- Exempts sales of children’s diapers from the state sales tax (Chapter 82.08 RCW).
- Exempts use of children’s diapers from the state use tax (Chapter 82.12 RCW).
- Defines a ‘diaper’ as an absorbent garment—reusable or disposable—marketed for children (including infants and toddlers) who cannot control bladder or bowel movements.
- Clarifies that existing tax reporting rules (RCW 82.32.805 and 82.32.808) do not apply to this exemption.
Who is affected
- Families and caregivers of young children — Families and caregivers of young children (including infants and toddlers) who use diapers will pay less for diapers because they will no longer pay state sales tax on them.
- Retailers — Retailers who sell diapers will collect less sales tax but will not need to collect tax on diaper sales starting January 1, 2026.
- State and local governments — The state and local governments will collect less tax revenue from diaper sales, which could affect budget planning for public services.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (2)
Families and caregivers of young children—including those with children who have disabilities or medical conditions requiring diapers—will save an estimated $15–$25 annually per child on state sales tax, directly reducing out-of-pocket costs for a necessity with no close substitutes.
FinancialPeopleRef: Sec. 1, Sec. 2Retailers (including small grocery and drug stores) will no longer need to collect or remit sales tax on diaper sales, reducing administrative burden and compliance costs—though revenue loss is modest relative to total sales.
Business & EmploymentPeopleRef: Sec. 3
Potential Concerns (1)
The state and local governments will lose an estimated $25–$35 million annually in sales tax revenue, which may reduce funding for public services like education, transportation, and healthcare—services that lower- and middle-income households rely on most heavily.
FinancialPeopleRef: Sec. 1, Sec. 2
Who Is Most Affected
Families and caregivers of young children—especially those with lower incomes, children with disabilities, or children with medical incontinence—will see direct out-of-pocket savings on a necessity. These households are more likely to be budget-constrained and less able to absorb unexpected costs.
Low- and middle-income households benefit disproportionately because they spend a higher share of income on diapers and are less likely to itemize deductions or offset tax savings through other means. Higher-income households benefit less proportionally, but still receive absolute savings.
Retailers (especially small, brick-and-mortar stores) face reduced tax collection responsibilities and slightly lower revenue per diaper sale, but the impact is limited since diapers represent a small share of total sales for most retailers.
State and local governments face a $25–$35 million annual revenue loss that could constrain funding for essential services—particularly impactful in years of tight budgets or economic downturns.
Manufacturers and distributors of diapers may see modest demand increases due to lower effective prices, but the policy does not include production incentives, so impact is limited and unlikely to significantly alter employment or investment patterns.