Taxes committee approves expanded exemption for baby products

Hey, baby. Did you know that pacifier in your mouth was a tax-free purchase while those wipes your caregivers use during a diaper change require a little extra money to be sent to the state?

O.K. kid, you probably don’t care at this point, but your parents might, especially if they’re in the market for a new crib, bassinet, stroller or car seat. Those are all currently taxed when purchased in Minnesota, but would not be under HF18.

Sponsored by Rep. Elliott Engen (R-White Bear Township), the bill would expand sales tax exemptions for baby products to include purchases of:

• baby wipes;
• cribs and bassinets and the mattresses and sheets that would be used with them;
• changing tables and pads;
• strollers, car seats, and car seat bases;
• swings;
• bottle sterilizers; and
• eating utensils for infants.

The House Taxes Committee approved the bill on a voice vote Tuesday and forwarded it to the House Ways and Means Committee.

“This is going to make Minnesota a better state to raise a family,” Engen said. “Since 2016, we’ve seen a 20% increase in the cost of raising a child throughout the nation. It’s actually at $240,000 by the time you hit 18.”

Engen quoted a CBS article about a MassMutual survey finding that 51% of parents say they suffer anxiety due to not having enough money to support their family.

“That’s sad. There’s more that we should be doing to support everyday folks who are just trying to raise a family in this state. This bill aims at doing just that,” Engen said.

Under current law, there is no sales and use tax on purchases of breast pumps, baby bottles and nipples, pacifiers, teething rings, and infant syringes.

The Revenue Department estimates the bill would decrease the state’s General Fund by $10.1 million in fiscal year 2026 and the natural resources and arts funds (which are made up of sales taxes) by $580,000.

Rep. Aisha Gomez (DFL-Mpls) suggested that families with young children would benefit more greatly from an expanded child tax credit, rather than sales tax exemptions. But Rep. Chris Swedzinski (R-Ghent) liked the narrow focus of the bill.

“Whereas other things could be used by adults, a baby item is pretty specific,” he said.