Diaper Tax In New Brunswick

Diapers are exempt from provincial sales tax in New Brunswick, Canada. This includes diapers for babies and children, as well as feminine hygiene products such as tampons and pads. However, adult-sized diapers are not exempt from the tax. This exemption is part of the province's efforts to support families and reduce the financial burden associated with having children.

Diapers in New Brunswick are exempt from provincial sales tax

Diapers are a necessity for parents and caregivers of newborns, toddlers, and adults suffering from incontinence. They are also expensive, with infants requiring up to 12 diapers per day, at a cost of $70 to $80 per month per child. That’s roughly $930 per year, according to the National Diaper Bank Network.

In recognition of the financial burden that diapers can place on families, several US states have moved to eliminate sales taxes on diapers. As of July 30, 2023, 26 states currently charge sales tax on diapers. This diaper tax can be as low as 4% or as high as 7%. In many states, cities and counties can add additional taxes.

Canada has also taken steps to reduce the cost of diapers by exempting them from provincial sales tax in certain provinces. For example, diapers are exempt from provincial sales tax in New Brunswick. This means that while diapers are still subject to the federal sales tax, the additional provincial tax does not apply, making them more affordable for families in the province.

The decision to exempt diapers from provincial sales tax in New Brunswick is part of a broader effort to make essential baby supplies more accessible and affordable for families. Other items that are exempt from provincial sales tax in New Brunswick include children's clothing, footwear, car seats, and booster seats.

By eliminating the provincial sales tax on diapers, the government of New Brunswick is helping to reduce the financial burden on families and improve access to necessary items for newborns, toddlers, and adults with incontinence. This move is especially beneficial for low-income families and those struggling to make ends meet.

However, diapers are taxed in other Canadian provinces

Diapers are exempt from the provincial portion of the Harmonized Sales Tax (HST) in New Brunswick. However, diapers are taxed in other Canadian provinces.

In Nova Scotia, diapers are taxed at the provincial sales tax rate of 8%. In Ontario, diapers are taxed at the provincial retail sales tax rate of 8% as well. Quebec charges a Quebec Sales Tax (QST) of 9.975% on diapers. Saskatchewan has a provincial sales tax rate of 6% on diapers.

In addition to these provinces, diapers are also taxed in other Canadian provinces such as Manitoba, Newfoundland and Labrador, and Prince Edward Island. The tax rates in these provinces vary, but they typically include a combination of federal and provincial sales taxes.

Diapers are considered clothing in New York, which is why they are tax-exempt

Diapers are considered clothing in New York and are therefore exempt from state and local taxes. This is because clothing in New York is exempt from the state's 4% sales tax if the item is under $110. Diapers are included in this exemption, and so are not taxed.

In New York, items of clothing under $110 are exempt from the state's 4% sales tax. This includes diapers, athletic uniforms, footwear, and fabric, zippers, yarn, buttons, etc. used to make or repair exempt clothing. Diapers are therefore considered clothing in New York and are tax-exempt.

The exemption does not apply to clothing and footwear sold for over $110, costumes or rented formal wear, items made from pearls, precious or semiprecious stones, jewels, or metals, or imitations thereof, that are used to make or repair clothing eligible for exemption, and protective devices (such as motorcycle helmets).

Some local areas in New York still require merchants to charge local sales tax rates on clothing less than $110. This is because some counties have the 0.375% Metro Commuter Transportation District (MCTD) tax, which is applicable in the city of New York and Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester counties. In some counties, the MCTD is applicable to clothing sales under $110, and in some counties, it isn't.

New York is one of a growing number of US states that are eliminating sales taxes on diapers, providing some relief for caregivers. This is due in part to high inflation and the strain it is putting on families. Federal food assistance programs cannot be used to purchase diapers.

The high cost of diapers often falls hardest on mothers, particularly poor mothers of color. One in three US families struggle to afford diapers, and the poorest fifth of Americans who buy diapers spend nearly 14% of their post-tax income on them.

Some states tax diapers to prevent waste and encourage reusable diapers

As of May 7, 2024, 26 US states charge sales tax on diapers, with rates ranging from 4% to 7% in Mississippi and Tennessee. In addition, many cities and counties impose additional sales taxes on diapers. However, some states have chosen to exempt diapers from sales tax to prevent waste and encourage the use of reusable diapers.

Some states argue that taxing diapers can help reduce waste and promote the use of reusable diapers. Wisconsin, for example, charges a tax on disposable diapers but does not tax diaper cleaning services. By encouraging the use of reusable diapers, states can reduce the amount of waste generated by disposable diapers. Additionally, some municipalities charge taxes for each bag of garbage used, which can increase the cost of throwing away diapers.

While the intention to reduce waste is commendable, taxing diapers can place a significant financial burden on families, especially those with low incomes. According to the National Diaper Bank Network, infants require up to 12 diapers per day, costing families $70 to $80 per month per child, or approximately $930 per year. This expense is particularly challenging for single mothers and low-income families.

Recognizing the financial strain of diaper costs, several states have taken steps to eliminate diaper taxes. As of July 30, 2023, 26 states do not charge sales tax on diapers. Some states, such as Minnesota, New Jersey, New York, and Pennsylvania, have exempted diapers from state sales tax, understanding the essential nature of this product for families.

The movement to end diaper taxes is gaining momentum, with states like Colorado, Iowa, Florida, Maryland, and Louisiana passing legislation to eliminate diaper taxes in 2022 and 2023. These states have prioritized the needs of families, especially during times of high inflation, by providing some financial relief through tax exemptions.

Diapers are not considered essential in 33 states

Diapers are an essential item for babies and toddlers, and even some adults suffering from incontinence. However, despite being a basic requirement, diapers are not considered essential in 33 US states. As a result, they are taxed as though they were a luxury item, and this can add anywhere from 1.5% to 7% to the cost of disposable diapers, depending on the state.

This additional cost can be a significant burden for families, especially those on low incomes. In fact, one in three families struggles to afford diapers, and the poorest fifth of Americans who buy diapers spend nearly 14% of their post-tax income on them. This has led to what is known as "diaper need", where caregivers cannot afford an adequate supply of diapers to keep their children clean and dry. Diaper need can cause anxiety for parents and caregivers, and it can also have negative health consequences for children. Extending the time between diaper changes, which is a common response to diaper need, can cause preventable medical conditions like diaper rash and infant urinary tract infections.

Some states have recognized the problem and taken steps to address it. As of July 30, 2023, 26 states were exempt from diaper tax, including California, Connecticut, Louisiana, Massachusetts, Minnesota, New Jersey, New York, and Pennsylvania. Other states, such as Alabama, Arizona, Arkansas, Georgia, and Kentucky, have proposed legislation to eliminate the diaper tax but have been unsuccessful so far.

The National Diaper Bank Network and other organizations are working to eliminate the diaper tax in all 50 states. They argue that reducing the sales tax on diapers will help low-income families and those living in poverty, who are disproportionately affected by the additional cost.

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