H.B. 1135 Summary

• Reduces general excise tax on groceries eligible for SNAP and WIC benefits to 3% in 2024, 2% in 2025, and 1% in 2026, then fully exempts them starting January 1, 2027, regardless of purchaser eligibility status.

• Reduces general excise tax on nonprescription drugs to 3% in 2024, 2% in 2025, and 1% in 2026, then fully exempts them starting January 1, 2027.

• Defines "groceries" as any food product for home consumption and requires the Department of Taxation to consult with the federal Food and Nutrition Service when further defining the term.

• Defines "nonprescription drug" as packaged chemicals, drugs, or medicines that may be legally sold without a practitioner's order, excluding devices, cosmetics, and liquor.

• Takes effect July 1, 2023.