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1999 SESSION

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SB 1195 Sales and use tax; rate on food for human consumption.

Introduced by: Malfourd W. Trumbo | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Sales and use tax; reduced rate on food purchased for human consumption; Food Tax Reduction Program. Reduces the state sales and use tax rate on food purchased for human consumption one-half percent each year for four years beginning July 1, 2000, for a total reduction of two percent. On and after July 1, 2003, the state sales and use tax rate on such food will be one and one-half percent. The local option one percent rate will not be affected by this legislation.

The gradual rate reduction will not occur in any year when the actual general fund revenues for the second fiscal year preceding a fiscal year in which a rate reduction is planned do not exceed the official general fund revenue estimates for such second fiscal year, as estimated in the most recently enacted and approved general appropriation act, by at least one percent or if any of the circuit breakers in the Personal Property Tax Relief Act of 1998 occur.

For purposes of the computations required under the Personal Property Tax Relief Act of 1998, the decrease in revenues attributable to the Food Tax Reduction Program shall be considered as amounts actually collected.

Finally, a Food Tax Reserve Fund is created on the books of the Comptroller to be used for purposes of the Food Tax Reduction Program.


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