MADISON — State Representative David Steffen (R-Howard) authored a state budget motion that would create a permanent sales tax exemption for baby-related products. The exemption would cover a variety of baby necessities including everything from diapers and wipes to car seats and strollers.  

“The Tiny Tot Tax Cut is meant to directly benefit young families and ease their financial burden. The cut would eliminate the sales tax on baby essentials needed for the care, safety and health of our kids,” said Rep. Steffen. 

Recently, Florida passed a sales tax exemption for these items, calling the legislation “family-focused tax relief.” A similar tax exemption in Wisconsin would result in real savings for families. The Legislative Fiscal Bureau estimates that such an exemption would save parents roughly $37 million over the biennium. 

“Things like diapers, wipes and car seats are all necessities when raising kids, and the costs quickly add up, especially in today’s economy. Our state needs to be looking for creative solutions to reduce the financial stress on young families. This proposal demonstrates my commitment to prioritizing the most vulnerable Wisconsinites,” said Rep. Steffen. 

The Tiny Tot Tax Cut is the second major tax reduction proposal offered to the legislature’s budget committee by Rep. Steffen. Earlier this session, he submitted a proposal that would make all retirement account income tax free. 

The proposal will now move on for consideration and review by the state’s Joint Finance Committee as it continues writing Wisconsin’s 2023-2025 biennial budget.  

For more information, contact the office of Representative Steffen at (608) 237-9104 or by email at Rep.Steffen@legis.wisconsin.gov.