House Bill 26-002

This bill exempts two categories of essential goods from the state sales and use tax: food for domestic home consumption and certain baby supplies. “Baby supplies” are defined as items primarily intended for the care, nourishment, hygiene, or safety of infants and toddlers under three years of age, including diapers, baby wipes, infant formula, and baby food marketed for infants and toddlers.

The measure is intended to reduce the cost of basic necessities for families and caregivers by removing state taxation on these items. The exemption applies only to the state portion of the sales and use tax and does not require counties or municipalities to adopt similar exemptions for locally imposed taxes. The Department of Revenue is authorized to adopt rules necessary to administer the exemption.