HB22-1055 Summary

• Exempts sales of period products from Colorado state sales tax effective January 1, 2023, defined as consumer products used to manage menstruation.

• Exempts sales of incontinence products and diapers from Colorado state sales tax effective January 1, 2023, defined as absorbent cloth or disposable products for humans unable to control bladder or bowel movements.

• Requires the State Auditor to identify available data sources and estimate taxpayer savings from both exemptions to measure effectiveness during evaluation.

• Both exemptions continue indefinitely notwithstanding standard tax expenditure sunset provisions.

• Allows towns, cities, and counties to adopt these exemptions in local sales tax ordinances only by express inclusion at initial adoption or by amendment.