H 1200

GENERAL ASSEMBLY OF NORTH CAROLINA
  SESSION 2025
 H  3
  HOUSE BILL 1200
  Committee Substitute Favorable 6/30/26
  Third Edition Engrossed 6/30/26
 Short Title:   Tax-Free Family Essentials Act.  (Public)
 Sponsors:
 Referred to:
  May 5, 2026
1A BILL TO BE ENTITLED
2 AN ACT TO EXEMPT DIAPERS, BABY WIPES, AND FEMININE HYGIENE PRODUCTS
3     FROM THE SALES TAX.
4 The General Assembly of North Carolina enacts:
5SECTION 1.(a) G.S. 105-164.3 reads as rewritten:
6 "§ 105-164.3. Definitions.
7     The following definitions apply in this Article:
8…
9(21a) Baby wipes. – Disposable, pre-moistened tissues, towelettes, or wipes that are
10marketed and labeled by the manufacturer primarily for use on the skin of
11babies or toddlers excluding items that meet the definition of an
12"over-the-counter drug."
13…
14(88) Feminine hygiene products. – Tampons, panty liners, menstrual cups, pads,
15and other similar tangible personal property designed for use in connection
16with the human menstrual cycle but does not include "grooming and hygiene
17products."
18…
19(94) Grooming and hygiene products. – Soaps and cleaning solutions, shampoo,
20toothpaste, mouthwash, antiperspirants, suntan lotions, and sunscreens,
21regardless of whether the items meet the definition of "over-the-counter
22drugs."
23…."
24SECTION 1.(b) G.S. 105-164.13 reads as rewritten:
25 "§ 105-164.13. Retail sales and use tax.
26     The sale at retail and the use, storage, or consumption in this State of the following items are
27 specifically exempted from the tax imposed by this Article:
28…
29(13d) Sales of diapers or incontinence underpads on prescription by an enrolled
30State Medicaid provider for use by beneficiaries of the State Medicaid
31program when the provider is reimbursed by the State Medicaid program or a
32Medicaid managed care organization, as defined in 42 U.S.C. §
331396b(m).underpads.
34…
35(76) Sales of baby wipes.
  *H1200-v-3*
General Assembly Of North Carolina  Session 2025
1(77) Sales of feminine hygiene products."
2SECTION 2. This act becomes effective April 1, 2027, and applies to sales made on
3 or after that date.
Page 2  House Bill 1200-Third Edition