Diapers will be exempt from sales tax in Nevada starting in 2025

By Lucia Starbuck
KUNR Public Radio
Corporation for Public Broadcasting

Starting January 1, baby and adult diapers will be exempt from sales tax in Nevada after Ballot Question 5 passed by more than 68%, according to results from the Secretary of State.

Nearly half of families in the country struggle to afford enough diapers to keep their young children clean, dry, and healthy.

That’s something Nevada-based Baby’s Bounty sees firsthand. CEO and Executive Director Kelly Maxwell said the need has only grown since the nonprofit’s first diaper bank during the pandemic, from serving about 83 families in 2020 to 850 per week now.

Maxwell said diapers are preventative health care.

“When diapers aren’t changed frequently enough, children can get infections, painful rashes. These, in turn, can wind these children up in the hospital,” Maxwell said.

Families spend roughly $1,000 per year on diapers, and the sales tax exemption can save households an estimated $84 per year per child, according to the Nevada Treasurer’s office. Maxwell said that tax savings are equivalent to a month’s supply of diapers and that the money will find its way back into the economy.

“Presumably, some of the savings will then go to purchase other items that are taxable, like a car seat, clothing for your children, books, bibs, rattles, bottles, all these items that are other baby necessities,” Maxwell said.

So, what would the impacts be on the state budget? Erik Jimenez, chief policy deputy with the Treasurer’s office, said it would lead to an estimated nearly $8 million loss in revenue per year, which in part goes toward local schools, cities, and counties. However, he said it’s only 0.00197% of Nevada’s state budget. He added that for families, every little bit helps.

“As prices are rising for gas, groceries and housing, for some families just having that additional couple bucks when they make those purchases, especially if you’re purchasing a large amount of diapers, or if you have twins or triplets, I think it is real money, and while it may not seem like a lot of money to those that are higher up the income bracket, every dollar counts,” Jimenez said.

Other items exempt from sales tax in Nevada include feminine hygiene products, electricity, durable medical equipment, farm machinery, non-produced food, and local journalism.

The sales tax exemption for diapers will last until 2050.

This story was made possible by a generous grant provided by the Corporation for Public Broadcasting that aims to boost awareness and engagement with coverage of Nevada State Government.