BILL NUMBER:  S644

 TITLE OF BILL :

An act to amend the tax law, in relation to granting a sales and
compensating use tax exemption for toilet paper and toilet tissue sold
for household use, and incontinence products

 PURPOSE OR GENERAL IDEA OF BILL :

This bill exempts toilet paper and toilet tissue for household use and
incontinence products from sales and use tax.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1. Adds a new paragraph to subdivision (a) of section 1115 of
the tax law. This section excludes toilet paper and tissue for
household use, and incontinence products from sales and use taxes.

Section 2. Effective Date.

 JUSTIFICATION :

Tangible products and services are subject to taxation in New York
State unless specifically excluded. Demand for hygiene products such
as toilet paper and incontinence products are very inelastic and
              

therefore it typically puts a greater burden on the economically
disadvantaged. Since these items are not optional products it should
not be subject to taxation.

There have been many tax exclusions for other goods such as certain
foods and medications that are considered to be necessities.
According to the New York State Department of Taxation and Finance's
Tax Bulletin Sales and Use Tax TBST-193, other medicinal products used
internally or externally by humans for the preservation of health and
products that are intended to affect the structure or a function of
the human body, are also exempt from sales tax. Products which were
not originally considered drugs or medications but are now tax exempt
include items such as sunscreen, lip balm, and acne preparations.

Toilet paper and incontinence products are vital products that help
maintain personal hygiene and health and should be included on this
list. Removing sales tax from these items would alleviate a tax burden
that all New Yorkers face and make it easier to afford a necessary
product that is fundamental to personal hygiene and health.  Of the
states that have a sales and use tax, two states, New Jersey and
Pennsylvania, have already removed the tax on toilet paper.

 PRIOR LEGISLATIVE HISTORY :

New Bill.

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect on the first of January on the next
succeeding the date on which it shall have become law.