HB 1024 Summary

• Phases out sales tax on retail food purchases (not bought with food stamps) that would qualify for exemption if purchased with food stamps, beginning July 1, 2025.

• Tax rate decreases annually: 6% (2025-2026), 5% (2026-2027), 4% (2027-2028), 3% (2028-2029), 2% (2029-2030), 1% (2030-2031), then fully exempt from July 1, 2031 forward.

• Applies only to food for human consumption that meets the same eligibility criteria as food stamp-eligible items under existing exemption Section 27-65-111(o).

• Adds new Section 27-65-111(bb) to codify the full exemption of qualifying food items effective July 1, 2031.

• Takes effect July 1, 2025.