HI HB1429

Reduces the general excise tax rate on retail sales of groceries to 3% in 2024, 2% in 2025, and 1% in 2026, replacing the standard rate under section 237-13.

Reduces the general excise tax rate on retail sales of nonprescription drugs to 3% in 2024, 2% in 2025, and 1% in 2026, replacing the standard rate under section 237-13.

Fully exempts groceries and nonprescription drugs from general excise tax beginning January 1, 2027.

Defines "groceries" as food or food products for home consumption, with the department authorized to provide further definition by rule.

Defines "nonprescription drug" as packaged or bottled chemicals, drugs, or medicines sold without a practitioner's order, excluding devices, cosmetics, and alcoholic beverages.