Voters in Nevada will be asked several questions on their November ballot. One, known as Question 2, would amend the state’s sales taxA sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. code to exempt feminine hygiene products from taxation.
Currently, 14 states do not subject feminine hygiene products to a sales taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. . Five states, Alaska, Delaware, Montana, New Hampshire, and Oregon, do not have general sales tax. Another nine states with sales taxes provide some sort of exemption. Those states are Connecticut, Florida, Illinois Maryland, Massachusetts, Minnesota, New Jersey, New York, and Pennsylvania. The District of Columbia also provides an exemption.
Exempting feminine hygiene products has been a popular tax policy discussion in recent years, with supporters of “tampon tax” repeal efforts arguing that women are discriminated against when buying these necessity items. But the argument stretches the imagination. First, no state subjects tampons to a special or unique tax. Feminine hygiene products are subject to Nevada’s sales tax, similar to many other items.
Additionally, while these exemptions are well-intentioned, they reduce the productivity of the sales tax. As exemptions creep up, the sales tax rate must be higher to generate the same amount of revenue. That means other items are now more expensive to offset the exemption. The exemption for feminine hygiene products is just one of many exemptions pursued by Nevada, and other states.
Ideally, sales taxes should tax all final consumer purchases, without regard to whether items are classified as necessities or luxuries. Moves to exempt items, such as feminine hygiene products, violate the principles of sound sales tax policy.
| As of July 1, 2018 | ||
|---|---|---|
| State | State Tax Rate | Feminine Hygiene Treatment |
|
Source: State statutes, forms, and instructions. |
||
| Alabama | 4.00% | Included in Base |
| Alaska | 0.00% | n/a |
| Arizona | 5.60% | Included in Base |
| Arkansas | 6.50% | Included in Base |
| California | 7.25% | Included in Base |
| Colorado | 2.90% | Included in Base |
| Connecticut | 6.35% | Exempt |
| Delaware | 0.00% | n/a |
| Florida | 6.00% | Exempt |
| Georgia | 4.00% | Included in Base |
| Hawaii | 4.00% | Included in Base |
| Idaho | 6.00% | Included in Base |
| Illinois | 6.25% | Exempt |
| Indiana | 7.00% | Included in Base |
| Iowa | 6.00% | Included in Base |
| Kansas | 6.50% | Included in Base |
| Kentucky | 6.00% | Included in Base |
| Louisiana | 4.45% | Included in Base |
| Maine | 5.50% | Included in Base |
| Maryland | 6.00% | Exempt |
| Massachusetts | 6.25% | Exempt |
| Michigan | 6.00% | Included in Base |
| Minnesota | 6.88% | Exempt |
| Mississippi | 7.00% | Included in Base |
| Missouri | 4.23% | Included in Base |
| Montana | 0.00% | n/a |
| Nebraska | 5.50% | Included in Base |
| Nevada | 6.85% | Included in Base |
| New Hampshire | 0.00% | n/a |
| New Jersey | 6.63% | Exempt |
| New Mexico | 5.13% | Included in Base |
| New York | 4.00% | Exempt |
| North Carolina | 4.75% | Included in Base |
| North Dakota | 5.00% | Included in Base |
| Ohio | 5.75% | Included in Base |
| Oklahoma | 4.50% | Included in Base |
| Oregon | 0.00% | n/a |
| Pennsylvania | 6.00% | Exempt |
| Rhode Island | 7.00% | Included in Base |
| South Carolina | 6.00% | Included in Base |
| South Dakota | 4.50% | Included in Base |
| Tennessee | 7.00% | Included in Base |
| Texas | 6.25% | Included in Base |
| Utah | 5.95% | Included in Base |
| Vermont | 6.00% | Included in Base |
| Virginia | 5.30% | Included in Base |
| Washington | 6.50% | Included in Base |
| West Virginia | 6.00% | Included in Base |
| Wisconsin | 5.00% | Included in Base |
| Wyoming | 4.00% | Included in Base |
| D.C. | 5.75% | Exempt |