Bill > LD1954

This bill expands the sales tax exemption for certain grocery staples sold in grocery stores by modifying existing tax law. Specifically, the bill defines "grocery staples" as food products ordinarily consumed for human nourishment, with detailed provisions about what is and is not included in this definition. While many food items will now be exempt from sales tax when sold in grocery stores, the bill continues to tax items like alcohol, medicines, dietary supplements, water, prepared foods, soft drinks, candy, desserts, and any food products containing cannabis. The bill provides a precise definition of a "grocery store" as a retail establishment primarily selling canned food, dry goods, fresh produce, and fresh meats, which includes convenience stores but excludes separately owned eating establishments within grocery stores. Examples of tax-exempt items will include bread, jam, jelly, pickles, honey, condiments, maple syrup, and spaghetti sauce. The changes to the tax exemption will take effect on January 1, 2026, giving businesses and consumers time to prepare for the new regulations.