CO HB1195

Creates a state sales tax exemption for diapers effective January 1, 2018, covering the sale, storage, and use of disposable diapers designed for children who cannot control bladder or bowel movements or adults with incontinence.

Defines "diaper" as an absorbent, disposable garment and explicitly excludes cloth or other washable diapers from the exemption.

Allows local statutory taxing jurisdictions (towns, cities, and counties) to adopt the same diaper exemption by express inclusion in their sales and use tax ordinance or resolution.

Finds that diapers cost working families $80-100 monthly per child, representing approximately 10% of annual budget for families at the national poverty level, creating financial hardship and barriers to childcare and employment.

Becomes effective August 9, 2017, unless a referendum petition is filed, in which case it requires voter approval at the November 2018 general election.