HB184 Summary

• Reduces state sales and use tax on food by one percentage point annually beginning September 1, 2022, through September 1, 2025.

• Tax rate schedule: 3% starting September 1, 2022; 2% starting September 1, 2023; 1% starting September 1, 2024; fully exempt starting September 1, 2025.

• Defines food using the federal Supplemental Nutrition Assistance Program definition in 7 U.S.C § 2011 et seq., with Legislature to establish a new definition if federal definition is eliminated.

• Local governments continue collecting local portion of retail sales tax on food at existing rates during the phase-out period.

• Act becomes effective on the first day of the third month following passage and gubernatorial approval.