Taxes, Sales - As introduced, exempts from the sales and use tax the retail sale of infant formula and diapers and wipes designed to be used by infants and children. - Amends TCA Title 67, Chapter 6, Part 3.

This bill would exempt infant formula, diapers, and baby wipes designed for infants and children from Tennessee's sales tax starting July 1, 2025. It directly affects parents or caregivers purchasing these essential baby items and retailers selling them. The key provision adds a specific tax exemption to Tennessee's sales tax code for these products, with "infant formula" defined as items meant to substitute human milk for infants. The exemption applies to both in-store and online retail purchases of qualifying items.