Starting on Thursday, July 1, buying menstrual products in Vermont will cost less. Act 73 exempts these items from the state’s 6 percent sales tax to promote gender and economic equity. The law supports younger people who have the hardest time affording them. Vermont’s Legislative Joint Fiscal Office estimates that the sales tax exemption will result in a $685,000 reduction in Education Fund revenues. This reduction is expected to remain relatively flat as Vermont’s aging population will likely reduce demand for these products.
Legislative Efforts
This is not the first attempt in Vermont to eliminate the tax; a similar 2019 bill did not become law. Two Edmunds Middle School students have campaigned for the tax-free policy to help ensure access to affordable products. The bill they supported did not pass this legislative session that ends in May; voting was deferred to next year. Obstacles include the House’s resistance to losing tax revenue and prioritizing other bills.
Tax-Free Movement Across the States
Meanwhile, Louisiana, Maine and Vermont have joined other states waiving taxes on menstrual products to reduce financial stress on women. Advocates say teens struggling to afford period products experience additional stress. In Louisiana and Vermont, tampons, pads and diapers are now tax-free. Maine will also end its tampon tax soon. Though calls to eliminate tampon taxes are growing nationwide, only five states – Maryland, Massachusetts, Pennsylvania, Minnesota and New Jersey – have laws not to tax them. Most states either lack a sales tax or do not classify menstrual products as necessities.
Texas repealed taxes on diapers and period products, joining other states. New York abolished its tax on feminine hygiene items; the new policy takes effect in September. Though California’s governor created a temporary exemption, the tax still exists. Cities like Denver voted to eliminate the levy but their states continue charging it.