HB 27 Summary

• Exempts from general excise tax all gross proceeds from the sale of groceries eligible for purchase under the Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), regardless of how the purchase is made or the purchaser's program eligibility.

• Defines "groceries" as any food or food product for home consumption, with the Department of Taxation authorized to further define the term through rules and tax releases in consultation with the federal Food and Nutrition Service.

• Exempts from general excise tax all gross proceeds from the sale of nonprescription drugs, defined as packaged, bottled, or nonbulk chemicals, drugs, or medicines that may be lawfully sold without a practitioner's order.

• Defines "drug" to include items recognized in official pharmacopeias, articles intended for disease treatment or prevention, articles intended to affect body structure or function (excluding food, clothing, devices, cosmetics, or liquor), and components of such articles.

• Takes effect January 1, 2022.