Bill > HB2006

This bill eliminates the remaining one percent local sales and use tax on food purchased for human consumption and essential personal hygiene products, effective July 1, 2025. Currently, a 1.5 percent tax is imposed on these items, with 0.5 percent already removed as of January 1, 2023. To compensate local governments for the lost tax revenue, the bill requires an equivalent amount of money to be distributed monthly to cities and counties based on their pro rata share of total sales and use tax collections. The term "food purchased for human consumption" follows the Food Stamp Act definition, excluding prepared foods from restaurants where over 80 percent of gross receipts come from food sales. "Essential personal hygiene products" includes items like diapers, incontinence products, menstrual cups, pads, and tampons. This change aims to reduce the tax burden on consumers for everyday necessities while ensuring local governments receive comparable funding through an alternative distribution method.