HB 24-1027

House Bill 24-1027, which has been signed into law, exempts certain baby and toddler products from sales tax starting January 1, 2025. This includes items like cribs, strollers, safety gates, clothing, and more. Additionally, the bill creates two annual sales tax holidays for back-to-school items: one in early January and another in late July, where specific school supplies and clothes are exempt from taxes up to certain price limits. Since it has been signed, this law will go into effect as planned, benefiting families with young children and those preparing for the new school year.

Official Summary

Section 1 of the bill creates, beginning on January 1, 2025, and continuing indefinitely, a state sales and use tax exemption for baby and toddler products. A "baby and toddler product" is defined to include a baby crib, playpen, or play yard; a baby stroller; a baby safety gate, cabinet lock or latch, or electrical socket cover; a baby monitor; a bicycle child carrier seat, or trailer, including an adaptor or accessory; a baby exerciser, jumper, bouncer seat, or swing; a breast pump, bottle sterilizer, bottle, or nipple, pacifier, or teething ring; baby wipes; a changing table or pad; and baby and toddler clothing. Section 1 also creates a time-limited state sales and use tax exemption, or sales and use tax holiday, for back-to-school items. The tax holiday applies for 14 days beginning on January 1, 2025, and for an additional 14 days beginning on July 24, 2025. A "back-to-school item" is defined to mean an article of clothing, a bag, a school supply, a learning aid, or a personal computer or personal computer-related accessory that is purchased primarily for use by an individual who is a minor. The exemption for each item is limited by cost as follows: $100 for an article of clothing or a bag; $50 for a school supply; $30 for a learning aid; and $1,500 for a personal computer or a personal computer-related accessory. Section 2 permits a town, city, or county to create sales and use tax exemptions that are identical to the state exemptions.(Note: This summary applies to this bill as introduced.)

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