HB2336 Summary: Use/Occupation Tax - Food and Medications

• Beginning January 1, 2024, food for off-premises consumption (excluding prepared foods, alcoholic beverages, and cannabis), prescription and nonprescription medicines, drugs, and medical appliances become exempt from use and occupation taxes.

• Includes exemption for Class III medical devices used for cancer treatment, motor vehicle modifications for disabled persons, and insulin and diabetes testing supplies.

• Items previously taxed at 1% rate under various tax acts (Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act) are moved to full exemption status.

• The 1% reduced tax rate on these items expires January 1, 2024, converting to 0% (full exemption) rather than the standard 6.25% general tax rate.