Bill Summary

• Reduces license fees for food and beverage establishments by 15-20%, including special event food stands ($50 to $40), limited food menu establishments ($60 to $50), and large establishments ($540 to $460).

• Exempts complimentary meals, nonalcoholic beverages, and alcoholic beverages provided by restaurants to customers at no cost from sales tax, effective after June 30, 2011.

• Exempts prepared food and drinks purchased for and served to restaurant employees from sales tax, effective after June 30, 2011.

• Expands capital equipment tax exemption to include machinery and equipment used by restaurants in furnishing, preparing, or serving prepared foods, effective after June 30, 2011.

• Allows large employers to credit gratuities toward minimum wage requirements, requiring $6.55 per hour plus gratuities equal to $12 per hour total, or $7.25 per hour if gratuities are insufficient; excludes tips exceeding twice the minimum wage from unemployment insurance taxable wages.