AB1031 creates a targeted exemption from Wisconsin sales and use taxes for “menstrual discharge collection devices,” a defined category that explicitly includes tampons, pads, panty liners, menstrual cups, menstrual-specific underwear and clothing marketed for menstrual use (e.g., period swimwear). The bill also introduces a separate definition of “grooming and hygiene products” and excludes those items from the new menstrual-product definition.
Practically, the bill adds a new subsection to the sales-tax exemption list (77.54(76)), amends the statutory presumption and certificate language to incorporate the new exemption, and sets the effective date as the first day of the third month after publication. For retailers, manufacturers, tax administrators and local governments, the bill changes product classification, point-of-sale coding, and revenue forecasting while lowering the after-tax price for covered items for consumers who menstruate.
At a Glance
What It Does
Defines “menstrual discharge collection devices” and makes their sale and use exempt from Wisconsin sales and use taxes by adding a new statutory exemption (77.54(76)). It amends certificate-and-presumption language so sellers need no exemption certificate for these items.
Who It Affects
Retailers and online sellers of menstrual supplies, manufacturers and importers of covered products, Wisconsin consumers who buy menstrual products, and state and local tax administrators responsible for collections and revenue estimates.
Why It Matters
The measure narrows the taxable goods base for a common consumer category, reduces out-of-pocket costs for people who menstruate, and creates operational work for sellers and tax agencies to reclassify products, update POS systems, and revise revenue estimates for state and local budgets.
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What This Bill Actually Does
The bill introduces two new statutory definitions and a new exemption. It defines “grooming and hygiene products” (soap, shampoo, toothpaste, antiperspirants, sunscreen, etc.) and separately defines “menstrual discharge collection devices” to include tampons, pads, panty liners, menstrual cups, period underwear and other tangible items marketed specifically for menstrual use.
The menstrual-product definition expressly includes clothing that meets the statutory clothing definition if marketed for menstrual use (examples named: period swimwear, running shorts, sleep shorts) and expressly excludes grooming and hygiene products.
To implement the exemption the bill adds a new line to the list of exempt sales (creates s. 77.54(76)) stating that the sales price and storage, use, or other consumption of menstrual discharge collection devices are exempt from sales and use taxes. The bill also amends the presumption-and-certificate provisions in ss. 77.52(13) and 77.53(10) to add cross-references to the new exemption, meaning sellers do not have to collect or retain an exemption certificate from purchasers for sales that fall under the new paragraph.Because the exemption operates at both the point-of-sale and for use tax purposes, sellers will need to change product coding and receipts and may need to modify category-level taxation in online marketplaces.
The statutory inclusion of clothing marketed for menstrual use creates cross-cutting implications with Wisconsin’s clothing rules; tax administrators will need guidance on when an item of apparel qualifies as a menstrual device versus ordinary clothing. Finally, the bill’s effective date is the first day of the third month after publication, and the bill notes it may be referred for a tax-exemption report and will include a fiscal estimate as an appendix.
The Five Things You Need to Know
The bill creates a new exemption at 77.54(76) that removes sales and use tax on the sale, storage, or use of “menstrual discharge collection devices.”, The statutory definition at 77.51(7jm) explicitly includes tampons, pads, panty liners, menstrual cups, period underwear, and clothing marketed specifically for menstrual use (e.g.
period swimwear).
The definition expressly excludes items defined as “grooming and hygiene products,” which the bill separately defines in 77.51(4f).
The amendments to 77.52(13) and 77.53(10) add the new exemption to the lists for which no purchaser exemption certificate is required, shifting the compliance burden away from buyers for these sales.
The act takes effect on the first day of the third month after publication, giving a limited implementation window for retailers, platforms, and tax agencies.
Section-by-Section Breakdown
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Defines 'grooming and hygiene products'
This short provision lists examples (soaps and cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions/screens) that the bill treats as grooming and hygiene products. By creating this exclusion class, the bill narrows the menstrual-product category and signals that common personal-care goods remain taxable unless separately exempted.
Defines 'menstrual discharge collection devices' and includes menstrual-specific clothing
This section sets the core substantive definition that determines what goods qualify for the exemption. It is broad — it includes traditional disposable items (tampons, pads, liners), reusable devices (menstrual cups), absorbent clothing marketed for menstrual use, and an open-ended catch-all for “other similar tangible personal property.” The provision’s reach depends on marketing specificity: apparel must be marketed specifically for menstrual use to qualify, which creates a marketing-based test rather than a purely functional test.
Adds the new exemption to the no-certificate list for sales tax administration
By inserting the new subsection number into the list of exemptions for which sellers do not need to obtain a buyer’s exemption certificate, the law reduces the administrative burden on consumers and sellers for routine purchases. In practice, this means sellers must rely on product classification (rather than purchaser certificates) to determine taxation at the point of sale, increasing the importance of correct SKU-level coding and vendor guidance.
Adds the new exemption to the no-certificate list for use tax administration
Parallel to Section 3, this amendment adjusts the presumption about use-tax liability and the certificate exception so that out-of-state and remote sellers delivering covered products into Wisconsin likewise do not need to secure purchaser exemption certificates. The practical effect is to simplify compliance for remote transactions, but it places the onus on sellers to classify items correctly for Wisconsin law and on the Department of Revenue to publish clear rules.
Creates the explicit sales-and-use-tax exemption and sets the start date
Section 5 inserts the new exemption line into the statute: the sales price from sales and the storage, use, or other consumption of menstrual discharge collection devices are exempt. Section 6 sets the effective date as the first day of the third month after publication. That timing gives a discrete window for retail systems, online marketplaces, and tax administrators to update classifications, but it also creates urgency for guidance and rulemaking.
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Explore Finance in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Consumers who menstruate — They will pay no state or, generally, local sales or use tax on covered menstrual devices, reducing recurring out-of-pocket costs for routine purchases.
- Nonprofits and schools that supply menstrual products — Purchases of covered items for distribution or institutional use should be tax-exempt at point-of-sale without needing exemption certificates, lowering program costs.
- Retailers and online sellers with accurate product classification — Sellers that update POS and catalog coding can reduce transaction friction (fewer customer exemption certificates) and align pricing transparently for customers.
Who Bears the Cost
- State and local governments — The exemption narrows the taxable base and will lower sales and use tax revenue, requiring revenue forecasting adjustments and possible impacts on local budgets that rely on shared sales tax receipts.
- Retailers, marketplaces and POS vendors — They must update product taxability tables, SKUs, and online storefronts to implement the exemption, incurring IT, training, and labeling costs during the implementation window.
- Wisconsin Department of Revenue and tax administrators — They must issue guidance, adjust audit approaches, and handle potential refund claims and classification disputes without additional appropriated resources unless provided.
Key Issues
The Core Tension
The central dilemma is between lowering the recurring financial burden on people who menstruate by removing tax from necessary products and the resulting revenue loss and administrative complexity for governments and sellers; the bill addresses affordability but shifts the challenge to precise product definitions, retailer compliance, and predictable budgeting.
The bill uses a marketing-based definition and a broad catch-all phrase (“other similar tangible personal property”), which raises practical questions about where to draw lines. Will reusable absorbent clothing be treated the same as disposable pads?
Does a general-purpose absorbent short marketed for athletics qualify if the marketing mentions menstrual use? Tax classification will hinge on product labeling and retailer descriptions rather than purely on function, inviting disputes and inconsistent application across sellers.
Administrative complexity is the other major unresolved issue. Adding the exemption simplifies purchaser paperwork but increases the operational burden on sellers and the Department of Revenue: SKU-level tax rules must be updated, online marketplaces must map millions of product variations to the new exemption, and auditors will face new disputes over classification and bundled products (e.g., a first-aid kit that includes a single pad).
Finally, the fiscal estimate and potential referral to the Joint Survey Committee on Tax Exemptions indicate state and local revenue impacts that will need quantification; without that data, policymakers and administrators will have an incomplete view of budgetary trade-offs.
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