An Act to exempt baby food, infant formula, and children's diapers from the state sales tax and state use tax.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That a NEW SECTION be added to chapter 10-45:

There are exempted from the provisions of this chapter and the tax imposed by it, the gross receipts of all sales of baby food, infant formula, and children's diapers, is zero percent. This exemption does not apply to chapters 10-52 and 10-52A and any tax municipalities are authorized to impose by those chapters.

The terms used in this section mean:

(1) "Baby food," food intended for use by infants when they are weaned or by young children, as a dietary supplement or for their adaptation to ordinary food;

(2) "Children's diaper," a diaper marketed to be worn by children;

(3) "Diaper," an absorbent garment worn by humans who are incapable of, or have difficulty, controlling their bladder or bowel movements; and

(4) "Infant formula," a food for special dietary use for infants, which simulates human milk or is suitable as a complete or partial substitute for human milk.

Section 2. That a NEW SECTION be added to chapter 10-46:

The use, storage, or consumption in this state of baby food, infant formula, and children's diapers, is exempted from the provisions of this chapter and the tax imposed by it.

The terms used in this section mean:

(1) "Baby food," food intended for use by infants when they are weaned or by young children, as a dietary supplement or for their adaptation to ordinary food;

(2) "Children's diaper," a diaper marketed to be worn by children;

(3) "Diaper," an absorbent garment worn by humans who are incapable of, or have difficulty, controlling their bladder or bowel movements; and

(4) "Infant formula," a food for special dietary use for infants, which simulates human milk or is suitable as a complete or partial substitute for human milk.