Bill > S10101

This bill establishes an annual two-week "food tax holiday" during November or December, during which state and local sales taxes will be suspended on certain prepared food items, including hot and cold prepared foods for immediate consumption, ready-to-eat items from grocery stores, delis, or food counters, and restaurant meals, including takeout and delivery orders, up to a purchase limit of $250. The bill specifies that this exemption does not apply to alcoholic beverages, tobacco, cannabis products, dietary supplements, pet food, catering contracts, soft drinks, sweetened beverages, or energy drinks, and the Commissioner of Taxation and Finance will further define "covered items" and provide guidance. Retailer participation is voluntary, but those who opt in may face penalties for noncompliance, and the state will reimburse local governments for lost tax revenue. The bill also allows cities with a population of one million or more to elect to provide this exemption through a local resolution. Finally, the Department of Taxation and Finance will conduct an economic impact analysis of the tax holiday two years after its effective date and report the findings to state leadership.