H.B. 945 Summary

• Reduces the general excise tax on groceries eligible for purchase under SNAP (Supplemental Nutrition Assistance Program) and WIC (Special Supplemental Nutrition Program for Women, Infants, and Children) from 4% to 3% in 2024, 2% in 2025, and 1% in 2026, with full exemption beginning January 1, 2027.

• Reduces the general excise tax on nonprescription drugs using the same schedule: 3% in 2024, 2% in 2025, 1% in 2026, with full exemption beginning January 1, 2027.

• Tax reductions apply to all SNAP and WIC-eligible groceries regardless of whether the purchaser actually participates in those programs.

• Defines "groceries" as any food or food product for home consumption, with the department of taxation authorized to further define terms in consultation with the federal Food and Nutrition Service.

• Takes effect July 1, 2023.