HB 2727 Summary

• Amends Arizona's transaction privilege tax (sales tax) rules to exclude soft drinks from the definition of "food" and therefore subject them to taxation.

• Defines "soft drink" as any nonalcoholic sweetened beverage sold for human consumption, including soda, cola, ginger ale, and fruit/vegetable drinks containing 50% or less natural juice.

• Exempts certain beverages from the soft drink tax classification, including products with more than 10% natural fruit or vegetable juice, infant formula, weight reduction products, plain water, milk-based products, and coffee/tea powders.

• Requires adoption of rules by the Department of Revenue to implement the soft drink exclusion from food and taxable status.

• Requires a two-thirds affirmative vote of both legislative houses for enactment, with immediate effectiveness upon the governor's signature.