HB 67 Summary

• Imposes a separate sales tax on retail food sales not purchased with food stamps, starting at 4.5% on July 1, 2019, and phasing down by 0.5% annually until reaching 0.5% on July 1, 2026, with full exemption beginning July 1, 2027.

• Increases the diversion of sales tax revenue to municipalities from 18.5% to 20% of total sales tax collected on business activities within municipal corporations, effective August 15, 2019.

• Applies the food sales tax only to items that would otherwise be exempt from sales tax if purchased with federal food stamps (USDA or other federal agency).

• Exempts the new food sales tax from certain existing tax diversion requirements and allows all existing exemptions to remain in effect after July 1, 2027.

• Effective date is July 1, 2019.