HB 22-1406 Summary

• Allows qualifying retailers in food service industries (restaurants, bars, caterers, mobile food services) to deduct up to $70,000 per month from state net taxable sales and retain the resulting sales tax collected during specified periods.

• Extends the sales tax retention benefit to three separate periods: November 2020-February 2021, June-August 2021, and July-September 2022, with retailers filing monthly returns during these timeframes.

• Limits deductions to up to five fixed physical premises per retailer (for traditional restaurants and bars) or up to five motorized vehicles or nonmotorized carts (for mobile food services), with one deduction allowed per location per month.

• Requires the Department of Revenue to report to its committee of reference by January 2023 on the amount of sales tax revenue not collected in 2022 and the number of retailers who utilized the deduction.

• Appropriates $106,400 to the Department of Revenue for the 2022-23 fiscal year to administer the program ($100,000 for taxation business group and $6,400 for executive director's office).