Are Poise pads for bladder leakage covered by Illinois's sales-tax exemption for feminine hygiene products?

Plain-English summary

Effective January 1, 2017, Illinois exempted certain feminine hygiene products from the Retailers' Occupation Tax (the state's sales tax), under 35 ILCS 120/2-5(42). The exemption covers menstrual pads, tampons, and menstrual cups.

A consumer bought a package of Poise pads — a product marketed for bladder leakage rather than menstruation — and was charged 41 cents in tax. Believing the new exemption should have applied, she filed a complaint with the Illinois Attorney General's Office, which forwarded it to the Illinois Department of Revenue. She asked for a refund of the tax and for the retailer to fix its point-of-sale system so it would stop charging tax on the item.

The Department responded with a General Information Letter explaining that the statutory exemption is limited to menstrual pads, tampons, and menstrual cups. Because Poise pads are designed for bladder leakage rather than menstruation, they are not covered by 35 ILCS 120/2-5(42) and remain taxable at the state general merchandise rate of 6.25%, plus any applicable local taxes.

What this means for you

If you sell or buy feminine hygiene products

Only menstrual pads, tampons, and menstrual cups qualify for Illinois's sales-tax exemption. Products marketed for other purposes — such as bladder-leakage or incontinence pads — do not qualify, even though they may look similar or sit on the same store shelf. Retailers should tax incontinence-type products at the general merchandise rate (6.25% state, plus local taxes) and should not apply the feminine-hygiene exemption to them.

If you believe you were charged tax in error

This letter shows how the Department handles a consumer complaint about sales tax collection: the Attorney General's Office forwards the complaint to the Department of Revenue, which reviews the facts and issues a written response. Here, the Department determined no error had occurred because the product purchased fell outside the exemption's scope.

Common questions

Does the Illinois feminine hygiene tax exemption cover all pad products?
No. It applies only to menstrual pads, tampons, and menstrual cups, as listed in 35 ILCS 120/2-5(42). Bladder-leakage or incontinence pads, such as Poise pads, are not included and remain taxable.

What tax rate applies to non-exempt items like incontinence pads?
They are taxed at the Illinois general merchandise rate of 6.25%, plus whatever local taxes apply in the jurisdiction where the sale occurs.

What's the difference between a GIL and a PLR, and why did the Department issue a GIL here?
A Private Letter Ruling (PLR), issued under 2 Ill. Adm. Code 1200.110, is binding on the Department but only for the specific taxpayer who requested it and only if the facts given are accurate. A General Information Letter (GIL), issued under 2 Ill. Adm. Code 1200.120, simply points the requester to the relevant statutes and regulations; it is not a statement of Department policy and is not binding. Because this inquiry arose from a consumer complaint rather than a formal PLR request, the Department responded with a GIL.

Citations and references

• 35 ILCS 120/2-5(42) — Retailers' Occupation Tax exemption for menstrual pads, tampons, and menstrual cups, effective January 1, 2017
• 2 Ill. Adm. Code 1200.110 — Procedures for requesting a binding Private Letter Ruling (PLR)
• 2 Ill. Adm. Code 1200.120 — Nature and non-binding status of a General Information Letter (GIL)

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/sales-tax/2017.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2017/st-17-0011-gil.pdf

Original ruling text

ST 17-0011-GIL 04/10/2017

TAX RATE

On January 1, 2017 certain feminine hygiene products became exempt from the Retailers’
Occupation Tax. These items include menstrual pads, tampons, and menstrual cups. See 35
ILCS 120/2-5(42). (This is a GIL.)

April 10, 2017

Dear Xxxxx:
This letter is in response to the complaint that you filed on March 3, 2017 with the Illinois Office
of the Attorney General regarding COMPANY’s collection of sales tax. The Office of the Attorney
General forwarded your complaint to the Illinois Department of Revenue. The Department issues two
types of letter rulings. Private Letter Rulings (“PLRs”) are issued by the Department in response to
specific taxpayer inquiries concerning the application of a tax statute or rule to a particular fact
situation. A PLR is binding on the Department, but only as to the taxpayer who is the subject of the
request for ruling and only to the extent the facts recited in the PLR are correct and complete.
Persons seeking PLRs must comply with the procedures for PLRs found in the Department’s
regulations at 2 Ill. Adm. Code 1200.110. The purpose of a General Information Letter (“GIL”) is to
direct taxpayers to Department regulations or other sources of information regarding the topic about
which they have inquired. A GIL is not a statement of Department policy and is not binding on the
Department. See 2 Ill. Adm. Code 1200.120. You may access our website at www.tax.illinois.gov to
review regulations, letter rulings and other types of information relevant to your inquiry.
The nature of your inquiry and the information you have provided require that we respond with
a GIL. In your letter you have stated and made inquiry as follows:
NAME OF SELLER/PROVIDER OF SERVICE
COMPANY
ADDRESS
COMPLAINT DESCRIPTION
I bought a package of Poise pads for women. It is for bladder leaks. I was charged 41 cents
in Tax. I was under the impression items like this would no longer be taxed as of Jan. 1st?
Please let me know. I had them ring it up separate and I do have a receipt.
REQUESTED RELIEF
I want a refund of the tax I paid and for them to fix their systems to no longer charge tax.
NOTIFY BUSINESS
I have no objections to the content of this complaint being forwarded to the business or person
the complaint is directed against.
DEPARTMENT’S RESPONSE:
On January 1, 2017 certain feminine hygiene products became exempt from the Retailers’
Occupation Tax. These items include menstrual pads, tampons, and menstrual cups. See 35 ILCS

ST 17-0011-GIL
Page 2

120/2-5(42). It is our understanding that you purchased Poise pads for women, a product intended
for bladder leakage. Because these items are not menstrual pads, but rather bladder leakage pads,
they remain taxable at the State general merchandise rate of 6.25% plus applicable local taxes.
I hope this information is helpful. If you require additional information, please visit our website
at www.tax.illinois.gov or contact the Department’s Taxpayer Information Division at (217) 782-3336.

Very truly yours,

Cara Bishop
Senior Counsel

CB:bkl

CC: Office of the Attorney General