HI HB1135

Reduces the general excise tax on SNAP and WIC-eligible groceries to 3% in 2024, 2% in 2025, and 1% in 2026, with full exemption beginning January 1, 2027, regardless of purchaser eligibility status.

Reduces the general excise tax on nonprescription drugs to 3% in 2024, 2% in 2025, and 1% in 2026, with full exemption beginning January 1, 2027.

Defines "groceries" as any food or food product for home consumption, with further definition by the Department of Taxation in consultation with the federal Food and Nutrition Service.

Defines "nonprescription drug" as any packaged chemical, drug, or medicine that may be lawfully sold without a practitioner's order, excluding devices, cosmetics, and liquor.

Takes effect on July 1, 2023, addressing food insecurity concerns and reducing the regressive tax burden on working families and low-income households.