HB 2643 Summary

• Imposes a 40% transaction privilege tax on sales of sweetened beverages through a new "retail sweetened beverage classification" in addition to existing retail or restaurant taxes.

• Defines "sweetened beverages" to include soft drinks and fruit juice powders with natural sweeteners, while excluding items like unsweetened water, infant formula, diet drinks under 10 calories per 12 oz, milk-based products, and coffee/tea preparations.

• Requires the Department of Revenue to provide endorsements to existing retail and restaurant tax licenses at no additional cost for businesses selling sweetened beverages, rather than issuing separate licenses.

• Exempts sweetened beverages from the definition of "food" for purposes of transaction privilege tax to prevent conflicts with existing food tax exemptions.

• Requires passage by a two-thirds affirmative vote in both legislative houses to take effect immediately upon the Governor's signature, or by a three-fourths vote if the Governor vetoes the bill.