HB 827 Summary

• Creates a new reduced tax rate on retail sales of food for human consumption not purchased with food stamps, effective July 1, 2019, with rates declining over three years: 5.833% (July 2019-June 2020), 4.666% (July 2020-June 2021), and 3.5% (July 2021 onward).

• Increases the percentage of sales tax revenue from food sales within municipalities distributed to municipalities, with rates rising from 24.67% (August 2019-July 2020) to 30.83% (August 2020-July 2021) to 37% (August 2021 onward).

• Applies the reduced food tax rate and increased municipal distribution only to foods that would be exempt from sales tax if purchased with federal food stamps.

• Takes effect July 1, 2019.