Menstrual Product Manufacturers Unite to Refund Sales Tax on Feminine Hygiene Items to Consumers

 

Menstrual Product Manufacturers Unite to Refund Sales Tax on Feminine Hygiene Items to Consumers

A consortium of menstrual product manufacturers unveiled "The Tampon Tax Back Coalition" on Wednesday, aimed at rectifying what they view as an unjust tax on feminine hygiene products like tampons, pads, and menstrual cups. In 21 states, consumers currently pay sales tax on these products, a situation that women's health advocates have long contested, advocating for the tax's removal.

The coalition is composed of eight prominent brands: August, Cora, Lola, The Honey Pot, Rael, Here We Flo, Saalt, and DIVA. They have introduced a system where shoppers purchasing items from these brands, either in physical stores or online, can submit their receipts on www.tampontaxback.com to receive a refund for the sales tax on their purchases. Nadya Okamoto, co-Founder of August and the driving force behind this coalition, stated, "Text us a picture of your receipt, and within 24 hours, we will Venmo or Paypal you back the tampon tax you paid. Each brand will reimburse the customer of its product, with August overseeing the process through a dedicated pool of funds from each brand."

While 19 states have eliminated sales tax on menstrual products in recent years, Okamoto emphasized the need for continued public awareness efforts until all states abolish the tax on these essential products. Texas, for example, recently repealed the tax on period products as of September 1, 2023, following the lead of other states. Retailers like CVS have also taken steps to reduce prices and pay the sales taxes on their store-branded menstrual products in specific locations.

The central message of the coalition is that period products should be considered medical necessities rather than subject to sales tax. In some states, the tax is imposed because tampons and pads are categorized as non-essential items. With her brand August, Okamoto made it a practice to avoid charging sales tax on customer purchases whenever feasible. However, when the brand expanded to Target, customers could no longer be exempted from the tax at the point of purchase. To overcome this, the brand allowed customers to submit their receipts for reimbursement, a model later adopted by the coalition.

Katherine Loughead, a senior policy analyst with the Tax Foundation, clarified that the so-called "tampon tax" is actually a sales tax and not a product-specific excise tax. As various products are exempted from sales tax over time, states may compensate by raising sales tax rates on other items. This could ultimately impact consumers who, although initially benefiting from exemptions, end up paying higher rates for their other purchases.

The sales tax on period products is only one aspect of a multifaceted challenge for consumers in need. Advocacy groups emphasize that the tax disproportionately affects families in poverty. Nonprofits like the National Diaper Bank Network and Period have found that many students, particularly those from lower-income and minority backgrounds, struggle to afford period products. This "period poverty" can have far-reaching consequences, affecting school attendance and overall well-being.

Nadya Okamoto, who co-founded Period in 2014 and is a driving force behind the coalition, envisions a future where the tampon tax is eliminated entirely. Her broader goal includes ensuring accessible period products in schools, shelters, and prisons, as well as free period care in workplaces and schools.