SB 1033 proposes amendments to sections 42-5061 and 42-5159 of the Arizona Revised Statutes to exempt feminine hygiene products (such as tampons, sanitary napkins, menstrual sponges, and menstrual cups) and disposable diapers (including those used for adult incontinence) from the state Transaction Privilege Tax (TPT) and Use Tax. The bill also specifies that these exemptions would apply to municipal taxes.

The bill is expected to reduce state General Fund revenue by up to $13.8 million in FY 2024, with $3.8 million attributed to the feminine hygiene product exemption and $10.0 million to the diaper and adult incontinence product exemption. The bill would take effect on the first day of the month following the general effective date. The impact on local governments is estimated to be a loss of $15.7 million in FY 2024.

Statutes affected:
Introduced Version: 42-5061, 42-5159, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5075, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01