Governor signs bill eliminating sales taxes on baby items

May 9, 2025 – MONTGOMERY, AL – Alabama Governor Kay Ivey (R), on the Friday ahead of Mother's Day weekend, signed House Bill 152 to provide sales tax exemptions on certain purchases of diapers, baby supplies, baby formula, maternity clothing and feminine products.

House Bill 152 was sponsored by Rep. Neil Rafferty (D-Birmingham).

"Alabama is proudly the most pro-life state in America, and we remain committed to doing all we can to support our moms," said Governor Kay Ivey in a statement. "As we head into Mother's Day weekend, I am excited to sign HB152 for all of our Alabama moms."

According to the fiscal note, HB152 would reduce sales tax receipts to the Education Trust Fund by an estimated $13 million a year, by exempting the gross proceeds of the sale of certain baby supplies, baby formula, maternity clothing, diapers, and menstrual hygiene products from state sales and use tax.

County and municipal governments would have the option of following the state's example and similarly eliminating their sales taxes on these same items. This would result in tax savings of another $17.6 million annually for mothers and families, if all local governments adopted the exemption provided by this bill.

HB152 passed the Senate by a vote of 34 to 0. It passed the House of Representatives 102 to 0.

The law goes into effect September 1, 2025.