H 33 — GROCERY TAX – Amends, repeals, and adds to existing law to exempt the sale of certain food items from sales tax, to repeal the grocery tax credit, and to increase sales tax distribution to local governments.

Bill Text

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The bill establishes a sales and use tax exemption for food sold for human consumption while repealing the food tax credit and certain provisions related to tax revenue distribution.

• 63-3622H

  There is hereby exempted from the sales and use taxes imposed by this chapter the sale of food sold for human consumption.

  This creates a new sales tax exemption for food intended for human consumption.

• 63-3622H

  "food" shall have the same definition as provided in 7 U.S.C. 2012 as that section existed on January 1, 2023.

  This defines 'food' in accordance with federal law.

• 63-3622H

  The types and kinds of food products eligible for exemption by this section shall be the same types and kinds of food products that are eligible for purchase with benefits provided under the federal supplemental nutrition assistance program (SNAP) and do not include restaurant sales of food, food sold in a heated state or heated by a seller, two (2) or more food ingredients mixed or combined by a seller for a single sale, or food sold with an eating utensil provided by the seller such as a plate, knife, fork, spoon, glass, cup, napkin, or straw.

  This specifies which food items are exempt from sales tax and notes exclusions.

• 63-3638

  Eleven and five-tenths percent (11.5%) → Thirteen and two-tenths percent (13.2%)

  This increases the percentage allocated to the revenue-sharing account from sales tax revenues.

• 63-3024A

  the food tax credit

  This repeals the food tax credit, eliminating the tax benefit previously provided.

• 63-3077G

  relating to a certain agreement for exchange of information

  This repeals provisions related to specific agreements for the exchange of tax information.

• 63-3077H

  relating to a certain agreement for exchange of information

  This further repeals additional provisions regarding agreements for the exchange of tax information.

• 32-706

  regarding the food tax credit and refund

  This removes references to the food tax credit and refund from the statute.

Action History

1. January 27, 2023

   Reported Printed and Referred to Ways & Means

2. January 26, 2023

   Introduced, read first time, referred to JRA for Printing

Sponsors

• Steve Berch · Primary

Subjects